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

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.