Scheduler Tax deduction Malaysia

Hi Folks,

This is my first blog had done some research on tax in Malaysia although there might be some defects as am still learning but so far the calculation for scheduler tax deduction is as follows,

It’s divided in to two parts for previous amounts and future amounts,

Assume,

Basic is 6300 for an employee in month of Jan and later in month of Feb the same employee has additional amount of 225, while in month of Mar the additional amount goes upto 2500

Then the calculation for month of April will be as follows

Jan : 6300 - 693(Assume EPF: 693)

Feb: 6300 + 225 – 717.25 (Assume EPF: 717.75)

Mar: 6300 + 2500 – 968 (Assume EPF: 968)

Total Previous Earning is : 19246.25

The basic is assumed to be same by system in future hence its: 6300*9 = 56700

Where 9 is number of months from month of April to Dec

Future Earning: 56700

Total yearly taxable amount is : 56700+19246.25 = 75946.25

Individual Rebate is 9000

Yearly taxable amount after Individual Rebate deduction : 75946.25 - 9000 = 66946.25

P= 66946.25

Refer to table for range of P,

PCB= (P-M)*R-(Z+X) / (N+1)

M and R can be referred from table while Z is zakat and X is Previous tax deductions

PCB = (66946.25 - 50,000)*0.16-(0+200.08)/10

        =249.122

Regards,

Prashant. j