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 Tax relief due to retrenchment

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amykhe
post Mar 18 2018, 11:38 AM

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QUOTE(cpk @ Mar 15 2017, 12:02 AM)
Yes, we know. Does anyone know and which part of the form to file in e-filing?
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I have same problem... if you know how to fill in please let me know
MoonRider
post Mar 18 2018, 03:26 PM

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i got my retrenchement also , hr give me some doc and i pass to lhdn .. lhdn will audit your 7 years if no issue , lhdn will sent you a letter to lepas the money .. give the letter to hr and they will lepas the $$$

This post has been edited by MoonRider: Mar 18 2018, 03:26 PM
gogocan
post Mar 19 2018, 05:47 AM

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When u get retrenched or lost your job due to reason stated in the buku panduan u'll get exemption of 10k for every completed years.
Let say your compensation is 200k..and has worked with the same Co for 10 yrs..so u only need to declare 100k as income.
Only retrenchemnment due to medical ground get full examption.

To get the exemption, normally your HR will issue a request to LHDN for SPC sijil penyelesaian cukai. LHDN then will calculate the exact tax to be paid base on the amount and reason provided by HR.

A copy of SPC will be issued to tax payer and HR.

ktn1169
post Apr 6 2018, 07:07 PM

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QUOTE(gogocan @ Mar 19 2018, 05:47 AM)
When u get retrenched or lost your job due to reason stated in the buku panduan u'll get exemption of 10k for every completed years.
Let say your compensation is 200k..and has worked with the same Co for 10 yrs..so u only need to declare 100k as income.
Only retrenchemnment due to medical ground get full examption.

To get the exemption, normally your HR will issue a request to LHDN for SPC sijil penyelesaian cukai. LHDN then will calculate the exact tax to be paid base on the amount and reason provided by HR.

A copy of SPC will be issued to tax payer and HR.
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i also got retrenched. In my EA form, it just show the Potongan Cukai Bulanan (PCB). The tax amount that paid to LHDN during tax clearance not in EA form. Should I just add the tax clearance amount in SPC (Surat perlepasan Cukai) into Potongan Cukai Bulanan (PCB) in Borang BE?
fapman
post Apr 8 2018, 12:36 AM

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Interested to know about this.
How to declare the money receive is due to retrenchment?
I can’t find any column in the e-filing form which relates to retrenchment.

PrincZe
post Apr 8 2018, 04:04 PM

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QUOTE(amykhe @ Mar 18 2018, 11:38 AM)
I have same problem... if you know how to fill in please let me know
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did you get tax clearance form since u have been retrenched? and if no need to pay anything, just fill up as usual as per your EA form
decembergod
post Apr 10 2018, 03:02 PM

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Need to fill in working sheet HK-2.7, it give example on how to calculate the tax exemption.

After fill in the form, no need to submit via e-filing, keep it for your own record, if lhdn ask for audit, show them the form.

Mean at e-filling, you direct deduct the relief amount and submit.

Say total income 100k, retrenchment relief is 40k, so you just submit 60k as income.

Keep your termination letter and the letter stated how many compensation you received for record.

azbro
post Apr 10 2018, 03:39 PM

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QUOTE(fapman @ Apr 8 2018, 12:36 AM)
Interested to know about this.
How to declare the money receive is due to retrenchment?
I can’t find any column in the e-filing form which relates to retrenchment.
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This explanation is for only for Retrenchment Benefit

Here I explain simple for you.

Condition: Lets say you already get you money (means CP22A etc is cleared)


1. You DONT declare what you received during efilling if what you get is LESS than 10K a year.

Example, you already work 10 years, and you received 90K retrenchment benefit. Meaning 90K / 10years is only 9K a year.

So that means you no need to declare that 90K.



2. You NEED declare what you received during efilling if what you get is MORE than 10K a year

Example, you already work 10 years, and you received 120K retrenchment benefit. Meaning 120K / 10years is 12K a year.

So that means you need to declare the 20K.

Yes, only the 20K is taxable.

The 20K should be plus with your Basic yearly salary.

Summary:

10K a year (X your service years), anything less no need declare, anything more, need to declare the balance.




I know what some of you thinking during Efilling:
Basic + Retrenchment Benefit minus Retrenchment Benefit non taxable.
But actually in Efilling dun have column like that.

So its Basic + balance of the Retrenchment Benefit (thats more than 10K).

Thats all.

This post has been edited by azbro: Apr 10 2018, 04:00 PM
azbro
post Apr 10 2018, 03:56 PM

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Here is another simple Example:

1. Your Salary is 8K

You get X0.5 for every year you service.

Lets say 10 years, means you get 4K every year.

That means 0K is taxable (Cos not more than 10K a year rule)

So you work there for 6 months. Company close down

6months X RM8000 = 48K


Ending is what you need to declare in Efilling is 48K+ 0K (Retrenchment Benefit)




2. Your Salary is 8K

You get X1.5 for every year you service.

Lets say 10 years, means you get 12K every year.

That means 2K is taxable.

10years means 20K is taxable.


So you work there for 6 months. Company close down

6months X RM8000 = 48K


Ending is what you need to declare in Efilling is 48K+20K (Retrenchment Benefit)


Note: thats just simple example.



fapman
post Apr 11 2018, 02:38 PM

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QUOTE(azbro @ Apr 10 2018, 03:39 PM)
This explanation is for only for Retrenchment Benefit

Here I explain simple for you.

Condition: Lets say you already get you money (means CP22A etc is cleared)
1. You DONT declare what you received during efilling if what you get is LESS than 10K a year.

Example, you already work 10 years, and you received 90K retrenchment benefit. Meaning 90K / 10years is only 9K a year.

So that means you no need to declare that 90K.
2. You NEED declare what you received during efilling if what you get is MORE than 10K a year

Example, you already work 10 years, and you received 120K retrenchment benefit. Meaning 120K / 10years is 12K a year.

So that means you need to declare the 20K.

Yes, only the 20K is taxable.

The 20K should be plus with your Basic yearly salary.

Summary:

10K a year (X your service years), anything less no need declare, anything more, need to declare the balance.
I know what some of you thinking during Efilling:
Basic + Retrenchment Benefit minus Retrenchment Benefit non taxable.
But actually in Efilling dun have column like that.

So its Basic + balance of the Retrenchment Benefit (thats more than 10K).

Thats all.
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Means for example, if I work for 7 years but my retrenchment benefit/package is less than 70k, no need for me to declare the retrenchment money in e-filing? If more than 70k, which column of the e-filing should I fill up? Is it under Pendapatan berkanun faedah, diskaun, royalti, premium, pencen, etc.?
TSlawrencesha
post Apr 13 2018, 01:04 PM

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QUOTE(PrincZe @ Apr 8 2018, 04:04 PM)
did you get tax clearance form since u have been retrenched? and if no need to pay anything, just fill up as usual as per your EA form
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Sendiri declare RM10K deduction. Make sure you keep the retrenchment letter....
PrincZe
post Apr 13 2018, 01:37 PM

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QUOTE(lawrencesha @ Apr 13 2018, 01:04 PM)
Sendiri declare RM10K deduction. Make sure you keep the retrenchment letter....
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Sendiri declare only if u need to pay.
TSlawrencesha
post Apr 13 2018, 04:08 PM

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QUOTE(PrincZe @ Apr 13 2018, 01:37 PM)
Sendiri declare only if u need to pay.
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Or get a refund. They refunded me over 20K that year.

 

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