The tax rate depends on your total income. There is no specific rate of tax for gratuity.

If you are asking whether your gratuity is tax free, that will depend on:-

- why did you retire? (ill health, compulsory age, etc)
- how long did you serve with the company
- what age did you retire at

Qualifying expenditure is the lower of cost vs market value of the asset. This is assuming the asset is purchased on a cash basis.

If it is a hire-purchase asset, then the qualifying cost is equal to the principal amount of intalments paid during the year.

There are additional rules to be observed for motor vehicles.

- Motor vehicles that cost up to RM150,000 (on the road price), you can only claim up to RM100,000 qualifying expenditure max.
- Motor vehicles that cost more than RM150,000, you can only claim up to RM50,000 qualifying expenditure.
- The above rules do not apply if your motor vehicle is registered with the Commercial Vehicle Licensing Board, or if you run a "hire-and-drive" car rental business / tour guide business.

If you are paying rental for motor vehicles, the above restrictions apply to your accummulated rentals also.

If you are buying the motor vehicle through hire-purchase, you recognise qualifying expenditure based on the principal portion of the repayment (the HP company must split for you the principal from interest portion). And you can claim the principal payment in the year you make the payment, subject to the above restrictions also.

Example:-

1) You buy a kancil for RM60,000 - your qualifying expenditure is RM60,000
2) You buy a Honda for RM130,000 - your qualifying expenditure is RM100,000 (The excess RM30,000 is permanently lost)
3) You buy a merc for RM200,000 - your qualifying expenditure is RM50,000 (The excess RM150,000 is permanently lost)

If you bought the merc, and it was registered with CVLB, then you can claim the full RM200,000.