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TSRoadwarrior1337
post May 19 2022, 01:31 PM, updated 2y ago

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Hi guys

Got a question regarding buy out. I joined a new company and the new company bought me out 2 months from my job notice

So they bought me out and paid x sum. My 2nd month salary got slashed after the tax from the buy out was reflected


Now im planning to take time off and leave this company. I would need to pay them back the buy out as its a bonding buy out

But heres the thing, do i pay them the full amount or the amount before tax ?

Coz i already got tax and now pay full amount again…its like dont make sense
sunami
post May 19 2022, 01:34 PM

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tax is between u and gov...
is not related to the com..
com pay u X amount, u pay them back X amount
nebula87
post May 19 2022, 02:00 PM

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QUOTE(Roadwarrior1337 @ May 19 2022, 01:31 PM)
Hi guys

Got a question regarding buy out. I joined a new company and the new company bought me out 2 months from my job notice

So they bought me out and paid x sum. My 2nd month salary got slashed after the tax from the buy out was reflected
Now im planning to take time off and leave this company. I would need to pay them back the buy out as its a bonding buy out

But heres the thing, do i pay them the full amount or the amount before tax ?

Coz i already got tax and now pay full amount again…its like dont make sense
*
For the bolded part, were they bought you and lowered your salary?

And they absorbed you, you should have signed a contract, and you know right? what you have to pay if you breached the contract.

And for your last concern, it should be with taxes just like your salary if not mistaken, but you can call HR to ask about this.



TSRoadwarrior1337
post May 19 2022, 02:40 PM

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QUOTE(nebula87 @ May 19 2022, 02:00 PM)
For the bolded part, were they bought you and lowered your salary?

And they absorbed you, you should have signed a contract, and you know right? what you have to pay if you breached the contract.

And for your last concern, it should be with taxes just like your salary if not mistaken, but you can call HR to ask about this.
*
Noted thanks for then input. If i pay tax together macam i loose

Anyway yeah there is a contract but i was reimburse a lower amount than the contract as old company calcualted lower for some reason so i shall pay the amount in liew base on what the new company paid
TSRoadwarrior1337
post May 19 2022, 02:40 PM

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QUOTE(nebula87 @ May 19 2022, 02:00 PM)
For the bolded part, were they bought you and lowered your salary?

And they absorbed you, you should have signed a contract, and you know right? what you have to pay if you breached the contract.

And for your last concern, it should be with taxes just like your salary if not mistaken, but you can call HR to ask about this.
*
Noted thanks for then input. If i pay tax together macam i loose

Anyway yeah there is a contract but i was reimburse a lower amount than the contract as old company calcualted lower for some reason so i shall pay the amount in liew base on what the new company paid
Topace111
post May 19 2022, 02:41 PM

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Check your contract. You repayment can be higher/ lower than the bond sum
mini orchard
post May 19 2022, 10:09 PM

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QUOTE(Roadwarrior1337 @ May 19 2022, 01:31 PM)
Hi guys

Got a question regarding buy out. I joined a new company and the new company bought me out 2 months from my job notice

So they bought me out and paid x sum. My 2nd month salary got slashed after the tax from the buy out was reflected
Now im planning to take time off and leave this company. I would need to pay them back the buy out as its a bonding buy out

But heres the thing, do i pay them the full amount or the amount before tax ?

Coz i already got tax and now pay full amount again…its like dont make sense
*
The tax money belongs to you .... just that is not in your pocket
SUSBrookLes
post May 20 2022, 10:18 AM

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QUOTE(mini orchard @ May 19 2022, 10:09 PM)
The tax money belongs to you .... just that is not in your pocket
*
Not really.

Income tax is just the fee you need to pay to work on Malaysia

mini orchard
post May 20 2022, 10:42 AM

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QUOTE(BrookLes @ May 20 2022, 10:18 AM)
Not really.

Income tax is just the fee you need to pay to work on Malaysia
*
As long one has no tax payable, any credits in account belongs to taxpayer.


ongss
post May 20 2022, 11:25 AM

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QUOTE(Roadwarrior1337 @ May 19 2022, 01:31 PM)
Hi guys

Got a question regarding buy out. I joined a new company and the new company bought me out 2 months from my job notice

So they bought me out and paid x sum. My 2nd month salary got slashed after the tax from the buy out was reflected
Now im planning to take time off and leave this company. I would need to pay them back the buy out as its a bonding buy out

But heres the thing, do i pay them the full amount or the amount before tax ?

Coz i already got tax and now pay full amount again…its like dont make sense
*
Depends on your employment letter. If you bond is one year and you only stay for 2 months, the usual practice is 10/12 x the buy-out amount this company paid to your ex-employer. However, there are exception. If your current employment is on contract basis, be prepared you have to pay the full amount. This is due to the short term basis, most of the companies pay buy-out fees because of urgency.

Effective from 2019, buy-out amount is taken as your income and you need to pay personal income tax for this amount. If you leave your current employer, the tax you paid is nothing to do with them. Hence, they will recover the actual buy-out fees they paid to your ex-employer.
SUSBrookLes
post May 20 2022, 11:35 AM

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QUOTE(ongss @ May 20 2022, 11:25 AM)
Depends on your employment letter. If you bond is one year and you only stay for 2 months, the usual practice is 10/12 x the buy-out amount this company paid to your ex-employer. However, there are exception. If your current employment is on contract basis, be prepared you have to pay the full amount. This is due to the short term basis, most of the companies pay buy-out fees because of urgency.

Effective from 2019, buy-out amount is taken as your income and you need to pay personal income tax for this amount. If you leave your current employer, the tax you paid is nothing to do with them. Hence, they will recover the actual buy-out fees they paid to your ex-employer.
*
But seriously, why they make buyouts taxable.

The employer does not even "benefit" from that
TSRoadwarrior1337
post May 20 2022, 11:36 AM

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QUOTE(ongss @ May 20 2022, 11:25 AM)
Depends on your employment letter. If you bond is one year and you only stay for 2 months, the usual practice is 10/12 x the buy-out amount this company paid to your ex-employer. However, there are exception. If your current employment is on contract basis, be prepared you have to pay the full amount. This is due to the short term basis, most of the companies pay buy-out fees because of urgency.

Effective from 2019, buy-out amount is taken as your income and you need to pay personal income tax for this amount. If you leave your current employer, the tax you paid is nothing to do with them. Hence, they will recover the actual buy-out fees they paid to your ex-employer.
*
Thanks this helps alot. So buy out will depend on duration i stay - if 4 month i stayed, i just pay remaining 8 months of the bond amount


ongss
post May 20 2022, 02:44 PM

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QUOTE(BrookLes @ May 20 2022, 11:35 AM)
But seriously, why they make buyouts taxable.

The employer does not even "benefit" from that
*
LHDN’s Public Ruling No 5/2019: Employee ‘Buy-Out’

http://lampiran1.hasil.gov.my/pdf/pdfam/PR_05_2019.pdf
https://www.lh-ag.com/wp-content/uploads/20...te-20200221.pdf

There are a lot of changes after 2019.
ongss
post May 20 2022, 02:56 PM

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QUOTE(Roadwarrior1337 @ May 20 2022, 11:36 AM)
Thanks this helps alot. So buy out will depend on duration i stay - if 4 month i stayed, i just pay remaining 8 months of the bond amount
*
You have to read your employment contract. If there is no clause to claim for full payment, then the industry's practice is to prorate.
hlyh1230
post May 21 2022, 08:51 AM

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it makes perfect sense TS. pay back whatever amount's stated in the contract. you agreed the TnC in the first place.
SUSBrookLes
post May 21 2022, 01:08 PM

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QUOTE(Roadwarrior1337 @ May 19 2022, 01:31 PM)
Hi guys

Got a question regarding buy out. I joined a new company and the new company bought me out 2 months from my job notice

So they bought me out and paid x sum. My 2nd month salary got slashed after the tax from the buy out was reflected
Now im planning to take time off and leave this company. I would need to pay them back the buy out as its a bonding buy out

But heres the thing, do i pay them the full amount or the amount before tax ?

Coz i already got tax and now pay full amount again…its like dont make sense
*
So the reason why you want to leave the company is to take time off?
SUSBrookLes
post May 21 2022, 03:47 PM

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QUOTE(Roadwarrior1337 @ May 19 2022, 01:31 PM)
Hi guys

Got a question regarding buy out. I joined a new company and the new company bought me out 2 months from my job notice

So they bought me out and paid x sum. My 2nd month salary got slashed after the tax from the buy out was reflected
Now im planning to take time off and leave this company. I would need to pay them back the buy out as its a bonding buy out

But heres the thing, do i pay them the full amount or the amount before tax ?

Coz i already got tax and now pay full amount again…its like dont make sense
*
How many months do you need to work for them to pay off their bond?

I would recommend you to just finish your contract if it's only 12 months.

The company is going to take the sternest action against you since they already paid so much in order to get you to work for them.
TSRoadwarrior1337
post May 21 2022, 03:53 PM

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QUOTE(BrookLes @ May 21 2022, 03:47 PM)
How many months do you need to work for them to pay off their bond?

I would recommend you to just finish your contract if it's only 12 months.

The company is going to take the sternest action against you since they already paid so much in order to get you to work for them.
*
Will just tell them im relocating

This post has been edited by Roadwarrior1337: May 21 2022, 03:54 PM

 

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