tax not gross salary ka?

EPF is taxed, unless you pay less than RM6,000 of EPF AND INSURANCE every year. which is unlikely for most people in Malaysia

that means, the 3% extra you get from EPF, will give you a tax saving on the EPF portion, however will be taxed back at your salary portion

total tax is the same.

example, me and my employer combined contribute 23% to EPF of basic salary. i get to keep 89% of my basic salary after excluding EPF

however, normally, this 23% of EPF will be fully taxed (except the first RM6k), and my 89% will be fully taxed (based on the schedule).

so when i get 3% saving, i will get 20%, which will be fully taxed (except the first RM6k), and i instead get 92% of basic salary, fully taxed.

total tax is on 89%+23% which is equal to tax on 92%+20% of salary. both subject to first RM6k being tax exempt on EPF/insurance

This post has been edited by Nachiino Etamay: Jan 29 2016, 12:47 PM

i still wonder. after gst. why still no reduce income tax???

thats cuz you bloody dont pay tax.

for CY2015, my salary grew by 9%, and my after tax salary grew by 10%

This is due to the 1%-2% lower tax rates for all brackets, and higher brackets.
the only reason you dont "feel" income tax reduction, as you are climbing the brackets

ie: you earn more money, hence moving from 13% to 16% to 20% to 24% bracket. then your after tax salary will grow slower compared to your salary.

Ghey spotted

Because you don't pay tax.

But then again, I thought he also announced that there's a tax exemption of RM2,000 for Malaysians earning RM8,000 and below for financial year 2015?

Kawan aku takde kat opis laa pulak. Lelz. Btw she is hhhnnnghhhhh lady

If your epf is less than 6k per year (rm500 per month), you will pay higher pcb.. But there is rm2000 special exemption for those salary 2k - 8k. Maybe compensate the pcb

You gross income is taxable, just EPF contribution got 6k break. The same one lah

thx all enlighten all stupiak /k

Uh only employers portion of epf is not taxed. So the change in the employees portion of the tax to u should be no implication unless u dun get the full rm6000 epf /life insurance relief. So to those within the narrow band of rm3500 to rm5000 will be affected (below tht u dun pay tax anyway)

Source: study tax in acca and was involved in some tax work in pwc.

u got 2k rebate mah for eraning 8k below

People like wangpr is a godsend to BN.

Wahh abang ni cable tebal2 lol

Below 5k 0% no?

6k deduction easy reach la, /k all 20k per month

Money used to calculate tax includes whatever that enters your EPF.
Whether you put 8% or 11%, it is taxed.

Basically what happens is that most Malaysians, lower - middle income bracket already no more money. So gov allow you take 3% back instead of contributing to EPF, so this money can be spent, and out of the 3% you take back, 6% of that amount will eventually to go government because of GST

In other words, spend less and save more.

....only tax break from extra EPF contribution