I am aware of the max contribution into EPF is 100k per year self contribute.

If I own a company, and I am a director of it, can I contribute like 1mil, 2mil or 3mil directly lump sum into my EPF account?

I am not talking about personal contribution which has a max limit, but company contribution, because I heard that company contribution is unlimited?

Please correct me if I am wrong. Thanks!

Also is there any processing fees or service fees charged

No processing no service fees.

Total salary for mandatory contribution for RM350k per month. Make sure tax is declared and paid accordingly.

You will contribute under employee 38500.00
You will contribute under employer 45500.00
Total 84000.00 contribution per month

x12 = RM 1,008,000 per year through employment

Can double confirm with EPF themselves, I have no high experience.. I'm B40, but I've worked in payroll so I know a bit on EPF contribution through salary.

This post has been edited by Natsukashii: Jun 29 2023, 10:49 AM

You can try if you want to alert LHDN to check your company for putting few millions in epf in one shot.

Its possible, thats why in the EPF millionaires list there are people in their 20s and 30s with a few million in EPF savings

If my company declares dividend of RM 1mil to director AFTER tax payment, can it be fully contribute to EPF?

EPF FAQ.

As what I read about in this article:

How much can you contribute to EPF every month?
For your mandatory contribution (from your employment salary), you can contribute up to 100% of your salary (after other deductions) to EPF. But unless you have other sources of income, this might be tough to do. Instead, you could increase your EPF contributions above the mandatory 11% to an amount you are comfortable with.

On top of your mandatory contributions, you could additionally contribute up to RM60,000 per year to your EPF savings.

CONTRIBUTING IN EXCESS OF THE MANDATORY STATUTORY RATE

https://www.kwsp.gov.my/ms/member/contribut...-statutory-rate

FAQs, ...
https://www.kwsp.gov.my/documents/20126/131...t=1647700199462




Attached thumbnail(s)

Why u want to do that?
For tax deduction
1. your company can only claim up to 19% of your total remuneration.

2. As a directors of a controlled Co. that millions contributed by your Co. to your EPF accounts is taxable under 13(1)(b)

This post has been edited by gogocan: Jun 30 2023, 01:06 AM

It is a way to increase one's own epf savings. After all, epf is considered low risk. If liquidity and duration is not an issue, I don't see why not.

Wah bro, why you accumulate so much profit till few millions (after tax money) spare cash in a Sdn Bhd?

1. Wasted so much of interest that you can earn, Company cash almost zero interest, ada pun kena tax jugak.

2.Wasted so much on company tax, 1 million is RM200k, 3 millions you have lost RM600k to tax

Already `lost´ so much 20%....... now suddenly want to earn back 5+% at EPF....


better use new money (aka before tax money) transfer to EPF, save at least 19% tax, that´s what i do
with my Sdn Bhd. Own salary can put all in to EPF :
eg salary RM30k, put all in after PCB etc to EPF every month
company portion make it tax beneficial max 19%. more also can but no benefit

Newbie here, thank you for the info

1. Wasted so much of interest that you can earn, Company cash almost zero interest, ada pun kena tax jugak.
Yes I know in current account almost zero interest, do u have any suggestion where to place the money to max out the interest with liquidity too?
Money Market?

2.Wasted so much on company tax, 1 million is RM200k, 3 millions you have lost RM600k to tax
Already `lost´ so much 20%....... now suddenly want to earn back 5+% at EPF....
Yea u're right, but at the end tax is gonna paid no matter what, so what should I do using the cash after tax payment from company beside EPF of 5+%?

Still learning

you in a hurry to put 1M in EPF, worth doing that just for the 5.5%?
follow the method suggested by Natsukashii , you die standing paying taxes

same also if follow another say pay yourself big bonus RM1 million.

better just cash out as dividend and slowly put in EPF 1 yr 200k (w spouse)

For new money, increase employer 19%(above 19 no tax benefit),
own portion put 90% la, just fill 17A keep for fun no need submit no need wait

newbie better go low risk, put some in FD
go for highest 4.5% now
spare put in KDI 4% daily interest

then look for bonds properties shares etc
can earn more can lose also

I am just curious. If you are the director of said firm, clearly you have been very successful in amassing profit/wealth... just that it is in the wrong vehicle.

While there is nothing wrong in asking here, you being a savvy businessman, must have known that your case is extremely unique. You really want to rely on lowyat forum to essentially transfer your wealth from one vehicle to fully personal and be fully compliant tax wise?
that is not very wise.

Better ask for advice where to get a good accounting firm or legal firm where you can get proper advice and pay the fees.

then you can sleep well and focuses more on earning more money.

ie: it is like if you have a normal flu, can lar go ask anyone for home remedy... but if you have a particular medical condition and is quite unique, best to find a medical specialist to solve it.

This post has been edited by Wedchar2912: Jun 30 2023, 09:06 PM

Keep it simple.

Contribute your 100k to EPF.

If you want, inform your HR, you want to have >11% of your salary masuk epf for your own contribution.

Total, >100k masuk epf

This post has been edited by adele123: Jul 1 2023, 09:16 PM