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24 Cards in this Set
- Front
- Back
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Section 13(1)(a)
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Comprises of income that is convertible to cash
- amount received in the ordinary course of employment - references to service rendered - amount accrued or directly from employment - the employee is entitled for the payment |
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Section 13(1)(a) - example
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Salary or tips
Bonus Gratuity Perquisite or allowances |
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Bonus
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Bonus is paid in addition to salary, so it will be taxed even that the employer declared it as a gift
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Gratuity
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It is the amount of money paid to an employee in the course of his employment upon resignation or retirement after serving a long period of time to the company
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Exemption for gratuity
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Employee receiving gratuity on retirement would be exempted from tax if:
ill health Age of 55 or reaching the compulsory age of retirement And must served the same employers for 10 years or more |
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Perquisite or allowance
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When the employer discharged its obligation to the employees by settling the employee's income tax, such pecuniary obligation would be treated as perquisite
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Share option and share incentives
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Perquisite of share option is the excess of the market price over the option price of the time the option is granted
Market value (when granted) or market value (when exercised) Less; option price |
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School fees
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The actual amount incurred by the employer on the tuition fees of the children of the employee would be taxed under perquisite
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School fees
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The actual amount incurred by the employer on the tuition fees of the children of the employee would be taxed under perquisite
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Insurance premium
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Insurance premium that paid by the employer on the life of the employee with the family of the employee being the beneficiary will be taxable under s13(1)(a)
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Section 13(1)(b)
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Benefits that are not convertible to cash or does not have exact monetary value which are provided by the employer to the employee
BIK |
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Provision for drivers
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The salary of the driver is borne by the employer, the amount taxable will be rm600 per month
Exempted if the driver comes from a pool of drivers provided by the employer only for business purpose |
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Car which exceeded 5 years
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The annual amount will be divided in half
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Formula method for car benefit
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(Market value of motorcar/8)x80%
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Value of furnitures
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Semi furnished (no aircond) - 70
Semi furnished - 140 Fully furnished 280 |
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Gardener, domestic servant and guard
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The employee will be assessed as:
Gardener - 3600/ yr Servant - 4800/ yr Guard - 4800/ yr |
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Tax exempt benefits
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Free transport (pick up at a certain pickup point)
Food and drinks subsidized by employer Medical, dental and child care Leave passage |
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Section 13(1)(c)
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Employer provides free or subsidized living accommodation to its employee. Only the value of the unfurnished living accommodation will be assessed on the employees
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The value of the living accommodation
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Define value of the accommodation or
30% of S13(1)(a) |
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The value of accommodation (director)
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The director is assessed on the full defined value of the accommodation.
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Provision of hotel or hostel
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The assessable value is 3% of s13(1)(a)
For director: Full define value of the hotel or hostel |
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Section 13(1)(d)
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- contribution made by the employer to the unapproved pension fund
- any income earned by unapproved fund and credited to the employee |
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Section 13(1)(e)
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Any amount received by way of compensation for loss of the employment
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Exemption of s13(1)(e)
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Exemption of 6000 for each completed year for ya 2007
ill health - total exemption After july 2008, - 10,000 for each completed years |
