1) for tax management purpose. It will reduce your taxable income. Since bonus is also subjected to EPF , i don't think will lose out right?

My example is this - employer pays you 10000, and additional 1100 (11%) into your EPF. Total employer gives you is 11100 a month.

You ask employer to pay you 9200 instead, but EPF his portion 1900 (19%). He loses nothing, you gain from less taxable income seen by the government.

800 x 12 = 9600 less income per year.

9600 x 0.15% tax = 1440 less tax a year... not good?




This post has been edited by Chrono-Trigger: Jul 27 2021, 01:08 PM

deleted...

This post has been edited by MUM: Jul 27 2021, 01:03 PM

Extra (via salary above the statutory 11%) or self-contribution (the max 60K annual limit) is not so much about tax savings, the tax deductible of 4K is too low to make a difference.

Treat it as a forced savings measure for those who are not so keen on self-investment elsewhere and who would like a stable return of more than the regular FD rates.

FYI, my experiment on self paying for EPF via Maybank took 2 days to reflect in my KWSP account.

No you cannot. Already clarified with LHDN officer.

In fact they even told me for year 2019 and before, caruman to kwsp cannot be counted for tax exemption.

Had an argument with her that this rule was not stated before, only mentioned since year 2020 tax filing.

Anyway I declared kwsp tax exemption for year 2019 and before, I will not do anything unless IRB proved that I was wrong.

ok thanks for the info

Sifus,

What is the dateline, before EPF calculate the dividend for this year ?

At the moment , contribute 5k/month since Jan

If i am not mistaken, the last 5k had to be in before 1 of Dec to be eligible for the prorated dividend rate for this year for that last 5k

thanks for the shared info

Lightbulb moment.
Will take 30 Nov as last day to top up 60k.

Started contributing extra last year and continuing this year...

If you work as a Sole prop but every month got pay yourself with complete payslip and EPF deduction and SOCSO, is the EPF contribution tax deductible?

according to this site

TAX QUESTIONS? YOU ASK LAH!
https://www.yycadvisors.com/can-claim-epf-t...ontributes.html

Q: If a self-employed person contributes EPF, can he/she claim the EPF tax relief?

A: A voluntary contribution made by an individual to an approved scheme is not eligible for tax relief. However, the 'voluntary contribution' restriction does not apply to a self-employed person who contributes to the EPF.


Is Partner or Sole Proprietor An Employee?
Under the definition of EPF, sole proprietor or partner is not an employee but self-employed person. Therefore, EPF contributions are not compulsory but they can opt for self contribution.
https://www.3ecpa.com.my/resources/human-re...sp-in-malaysia/

thus, i may be wrong, but i think it cannot be used by the "company" (sole proprietor) as tax deductible in its business financial accounting

do note, i think
there is a limit for self contribution per year
there is a limit for EPF contribution tax relief claim in form B


This post has been edited by MUM: Sep 4 2021, 10:48 AM

https://www.kwsp.gov.my/-/epf-supports-budg...irement-savings

Now i-Saraan extended to include those age 55-60.

Guys

I'm working for private MNC. My wife is a housewife. Is my wife qualified for i-Saraan? Will they check household income?

This post has been edited by Barricade: Oct 31 2021, 07:32 PM

Is it possible for a Company to issue a Cheque (to EPF) for an Employee's "Self-Contribution"?

If yes, who is the Cheque Addressed to - to EPF or to the Employee?

-Double Posted-

This post has been edited by GravityFi3ld: Nov 1 2021, 01:50 PM

Self contribution can only be done by the employee on his own initiative, not by the company / employer.
Max contribution limit of $60K per year.
https://www.kwsp.gov.my/member/contribution...lf-contribution

Alternatively you could request your employer to deduct more than the statutory 11% from your salary.
https://www.kwsp.gov.my/member/contribution...-statutory-rate

So meaning you can only claim the tax relief once, on the personal income side?

I'm a sole prop and thinking of opening EPF account by end of year to contribute just to get the small amount of tax relief. Is this allowed?

Hi sifu2 sekalian, I've been working as freelancer (sole prop) for a long time but haven't been self contributing EPF. Thinking of opening an account by year end and self contributing to get some tax deductions out of it.

On https://www.kwsp.gov.my/member/register it says I can either go to an office or kiosk, my first question is if I go to a kiosk will that be enough since I'm self-employed? Or need to go to office so they can verify some business docs and whatnot?

Second question is, once account opened and approved, can I immediately start self-contributing to get tax deduction for YA2021 (this year), or must I wait for a little while more?

Thanks.