2015 employer’s income tax reporting - deloitte employer’s income tax reporting stay in the know...

2015 Employer’s Income

Tax ReportingStay in the know

Ang Weina / Michelle Lai /

Lee Lai Kuen / Nuraina Annuar

21 January 2016

An event by Deloitte Tax Academy

© 2016 Deloitte Tax Services Sdn Bhd

• Opening address

• Recent developments

Finance Act 2015

Monthly Tax Deduction (MTD)

New Public Rulings

• Statutory deadlines

• Employee and deemed employer

• Employer’s tax reporting obligations

Preparing the Form E

Preparing the Form EA

• Case studies

• Q & A

Agenda

2© 2016 Deloitte Tax Services Sdn Bhd

Recent developments

- Finance Act 2015


4

Recent developments

Changes to individual income tax rate

Finance Act 2015

• The chargeable income band exceeding RM400,000 be restructured as

follows:-

• Non resident individual income tax rates be increased from 25% to 28%

• Effective : YA2016 and subsequent YAs

Current (RM) Old Tax rate New (RM) New Tax rate

Exceeding 400,001 – 600,000 25%

400,000 25% 600,001 – 1,000,000 26%

Exceeding 1,000,000 28%


5

Recent developments

Increase in income tax reliefs

Relief for spouse and alimony payment to former wife

To increase the personal deduction in respect of an individual whose spouse

has no income and/or pays an alimony to his former wife from RM3,000 to

RM4,000.

Effective : YA2016 and subsequent YAs


6

Recent developments


Relief for children (unmarried)


2015 New (2016)

Child below 18 years old RM1,000 RM2,000

Child above18 years old (1) RM6,000 RM8,000

Disabled child below 18 years old RM6,000 RM6,000 (no change)

Disabled child above 18 years old(1) RM12,000 RM14,000

Note:

1. Receiving full time instruction at diploma level and above at a recognized

institution of higher learning in Malaysia or serving under articles/

indentures with the view to qualifying in trade/profession or at degree level

and above at a recognized institution of higher learning outside Malaysia.


7

Recent developments


Relief for fees incurred for tertiary education

To increase the personal relief deduction in respect of fees expensed by the

resident individual who pursues a course of study up to tertiary level in selected

fields of study, or Master/Doctorate level in any field, at any institution or

professional body in Malaysia recognized by the Government or approved by

the Minister of Finance from RM5,000 to RM7,000.



8

Recent developments


New Subsection 46(1)(n) to the Income Tax Act

Relief for contribution to social security protection scheme

Tax relief up to a maximum of RM250 per year in respect employee’s

contribution to the Social Security Organisation (SOCSO) would be granted to

resident individuals.



9

Recent developments


New Subsection 46(1)(o) to the Income Tax Act

Parental care relief

A tax relief of RM1,500 for each parent would be deductible by resident individuals

subject to the following conditions:-

• The parent must be a resident and aged 60 years and above in the basis year;

• The parent has an annual income not exceeding RM24,000 per annum;

• Parents are legitimate natural parents and foster parents in accordance to the

respective law subject to a maximum of two parents; and

• No expenses in respect of medical expenses incurred for parents have been

claimed by the individual.

Where there are other siblings entitled to the relief, the claim can be shared provided

the total relief claimed does not exceed RM1,500 per parent.

Effective : YAs2016 - 2020


10

Form TP 1

New Form issued

in 2016


11

Recent developments

Finance Act 2015

Amendments, subsections 25(1) and (6); Deletions, subsections

25(2),(2A),(3),(4) and (5) to the Income Tax Act

Subsection 25(1)

Where the gross income from an employment is receivable in respect of any

particular period, it shall when received in the relevant period be treated as the

gross income of the relevant person for the relevant period.



Basis period to which gross income from

employment is related

12

Recent developments

Basis period to which gross income from

employment is related

Implications

• Going forward, ALL remuneration has the same tax treatment as bonus and

director’s fees.

Key questions

• Will there be changes to 2016 Form EA?

• What is the impact on Monthly Tax Deduction (MTD)?

Grey areas:-

• Payments made before an individual join the company

• Payments made after an individual left the company

• Transition period – e.g. December 2015/January 2016


13

Recent developments

New Subsection 112(1A) to the Income Tax Act

Default in furnishing a return in respect of any one year of assessment for 2 years

of more

• On conviction be liable to a fine not less than RM1,000 or not more than

RM20,000 or imprisonment not exceeding 6 months or both; and

• Special penalty equal to treble the amount which the DG may determine as the

tax charged on the chargeable income of the person for those YAs.

Effective : 30 December 2015


14

Recent developments

New Subsection 120(1)(h) to the Income Tax Act

Failure to furnish the correct particulars as required by the DG under paragraph

77(4)(b)

• On conviction, be liable to a fine not less than RM200 and not more than

RM20,000 or imprisonment not exceeding 6 months or both.

Effective : 30 December 2015


15

Recent developments

Exemption on retirement gratuityNew Paragraph 25D, Schedule 6 to the Income Tax Act


Current rules on retirement gratuity Additional coverage

Retirement gratuity paid

• Due to ill-health

• On or after reaching retirement age of 55 or other

compulsory age of retirement under any written law

• On or reaching compulsory retirement age of 50 but

before 55 which is covered in employment contract or

collective agreement

• With exception for gratuity paid for ill-health, to

qualify for exemption, the individual must also have

served 10 years with the same employer or

companies in the same group

Gratuity on retirement from an

employment under any written law or

termination of a contract of employment

regardless of the age and period of

service of the individual

Full exemption if meet the criteria listed above RM1,000 per completed year of service

Existing provisions in the Income Tax Law Effective : YA2016 and subsequent YAs

16

Recent developments

Electronic filing for employers

New subsection 83(1B) to the Income Tax Act

Employer annual tax return (Form E)

Where the employer is a company, the Form E must be furnished on an

electronic medium or by way of electronic transmission in

accordance with Section 152A.



17

Recent developments

Electronic filing for employers

New subsection 83(1B) to the Income Tax Act

Employer annual tax return (Form E)

How does this change affect employers?


Recent Developments

- Monthly Tax

Deductions (MTD)


19

Recent developments

Income Tax (Deduction from Remuneration)(Amendment) Rules 2015

Amendment to Rule 17

Failure to comply with Monthly Tax Deduction subrules 10(1) or 13 shall be guilty of

an offence

• On conviction, be liable to a fine not less than RM200 and not more than

RM20,000 or imprisonment not exceeding 6 months or both.

Effective : 1 January 2016


20

Recent developments


Amendment to Schedule

(a) In paragraph 4, substitute Table 1 with the following table


P

(RM)

M

(RM)

R

(%)

BCategory 1 &3

BCategory 2

5,001 – 20,000 5,000 1 -400 -800

20,001 – 35,000 20,000 5 -250 -650

35,001 – 50,000 35,000 10 900 900

50,001 – 70,000 50,000 16 2,400 2,400

70,001 – 100,000 70,000 21 5,600 5,600

100,001 – 250,000 100,000 24 11,900 11,900

250,001 – 400,000 250,000 24.5 47,900 47,900

400,001 – 600,000 400,000 25 84,650 84,650

600,000 – 1,000,000 600,000 26 134,650 134,650

Exceeding 1,000,000 1,000,000 28 238,650 238,650

21

Recent developments


Amendment to Schedule (cont’d)

(b) Determination of amount of MTD for additional remuneration of previous years

• The amount of MTD for additional remuneration prior to year 2016 which is

received in current year shall be calculated in accordance with the method

and MTD table applicable for the year the additional remuneration is

received.

Effective : 1 January 2016


Recent Developments

- New Public Rulings


23

Public Ruling 12/2015

Recovery from Persons Leaving Malaysia

• Circumstances and procedures for recovering of tax and debts due from

taxpayers who will be leaving Malaysia

• A “stoppage order” will be issued to prevent a person from leaving Malaysia if

he fails to pay all tax, sums and debts so payable

• The certificate on the stoppage order will be served by personal service or by

registered post to an individual or a company director who is liable under

Section 75A of the Income Tax Act

• A taxpayer has to settle the tax before being allowed to leave Malaysia

• Malaysians can check on the status of imposition of stoppage order at

www.imi.gov.my. Foreign nationals are advised to contact the IRB branch to

check on their status.


http://www.imi.gov.my/

24

Public Ruling 12/2015


Statutory deadlines


Due date for Form EA

• Due date: 29 February 2016

• Form C.P. 8A (EA) To Be Rendered To Employees

• Employers are required to prepare the 2014 Form C.P. 8A (EA) and provide to

all their employees before or on the due date of 29 February 2016

• There is no requirement to provide a copy to IRB

• Failure to do so may render the employer of a fine of not less than RM2,000

and not more than RM20,000

@2016 Deloitte Tax Services Sdn Bhd 26

Due date for submission of Form E

Before or on 31 March 2016

Application for extension of time

• At least 30 days before the due date for submission of the form.

• Furnished together with reasonable and strong justification.

• Application will be considered based on the merit of the case.

@ 2016 Deloitte Tax Services Sdn Bhd 27

Procedure on submission of Form E

Form C.P. 8D can be submitted through the following methods:

a) e-Filing if Form E is furnished via e-Filing;

b) Furnish the txt file on CD as per the data specification in Part A of Appendix 1

(available in the IRB website);

c) Furnish the file in Microsoft Excel on CD as per the specification in Part B of

Appendix 1 (available in the IRB website); or

d) Send C.P. 8D in paper form.

The form has to be submitted to Jabatan Pemprosesan Maklumat

Jabatan Pemprosesan Maklumat,

Lembaga Hasil Dalam Negeri Malaysia

Menara Hasil, No. 3, Jalan 9/10, Seksyen 9,

43650 Bandar Baru Bangi,

Selangor Darul Ehsan

Kuala Lumpur.


Employee and

Deemed employer


Who is an employee?

Definition of employee:

a) where the relationship of master and servant subsists, the servant;

b) where that relationship does not subsist, the holder of the appointment or office

which constitutes the employment.

"employment" means:

a) employment in which the relationship of master and servant subsists;

b) any appointment or office, whether public or not and whether or not that

relationship subsists, for which remuneration is payable


Deemed employer

Section 83(6) of the Income Tax Act:

“For the purposes of this section and subsection 107(4), any person to whom

or for whose benefit a service is rendered or performed by another person

shall be deemed to be an employer whether or not he employs that other

person or is responsible for paying remuneration to that other person”


Deemed employer

Considerations:

a) Trainees/Interns (including non Malaysian citizen)

b) Temporary staff

c) Contract workers

d) Employees from head office/subsidiary on temporary assignment/ frequent

business travelers

e) Vendors (especially if they are non Malaysian citizen)


Employer’s Tax

Reporting Obligations


Employer’s Tax Reporting Obligations

• Notification of Commencement of an Employment (Form CP22).

• Return Form of an Employer (Form E)

• Statement of Remuneration (Form EA).

• Monthly Tax Deduction (MTD).

• Notification of Departure from Malaysia for Period Exceeding Three (3) Months

(Form CP21) / Notification of Cessation of An Employment (Form CP22A).

• Withholding Monies (ie last month’s remuneration) from individuals who are

ceasing Malaysian employment and leaving Malaysia for more than 3 months.

© 2016 Deloitte Tax Services Sdn Bhd 34


• Section 83(1) – Return Form of an Employer (Form E)

Every employer shall, for each year, furnish to the Director General annually

a return in the prescribed Form E not later than 31st March.

• Section 83(1A) – Statement of Remuneration (Form EA)

Every employer shall, for each year, furnish to their employees a statement of remuneration in Form CP 8A (Form EA) or 8C (Form EC) not later than on or before the last day of February.

For expatriates where remuneration is paid partially from home country, a letter from the payer of the home country to confirm on the compensation details is required.

• Section 83(2) – Notification of Commencement of an Employment (Form CP22)

To submit the Form CP 22 within 30 days of the commencement / re-

commencement of employment in Malaysia.



• Section 83(3) – Notification of Cessation of An Employment (Form CP22A)

To submit the Form CP 22A at least one (1) month before the cessation date.

• Section 83(4) – Notification of Departure from Malaysia for Period Exceeding

Three (3) Months (Form CP21)

To submit the Form CP 21 at least 1 month before the expected date of departure of employment in Malaysia.

• Section 83(5) – Withholding Monies

To withhold monies due to an employee who is about to leave Malaysia for a period of more than 3 months with no intention of returning to Malaysia.

To withhold such monies until 90 days after submitting the Form CP21 to the MIRB or upon issuance of the tax clearance letter, whichever is earlier.

• Section 83(6) – Deemed Employer

Deemed employer is benefits from a service rendered or performed by another person whether or not he employs that other person or is responsible for paying remuneration to the other person.



• Income Tax (Deduction From Remuneration) Rules 1994

To deduct in each month the monthly deduction in accordance with the

Schedule of Monthly Tax Deduction 2016 in respect of employee’s

remuneration.

Due date for payment is the 15th of the following month

Definition of remuneration - income in respect of gains and profits from an

employment. Benefits in kind and accommodation under paragraphs 13(1)(b)

and 13(1)(c) of the Act are also included.


Penalties and Offences

Monthly Tax Deduction (MTD)

• Prosecution under Rule 17, Income Tax (Deduction from Remuneration) Rules

1994 [“The Rules”]

• Fine of not less than RM200 not more than RM 20,000 or to imprisonment for a

term not exceeding 6 months or to both

• Type of offences:-

- Failure to remit by the15th of the following month

- Failure to deduct or deduct less

- Failure to remit or remit less

- Failure to give complete and accurate information


Penalties and Offences

• Non compliance with Section 83(1),(1A),(2),(3),(4),(5)

i.e. Forms E, EA, CP21, CP22, CP22A

• Section 120

• Upon conviction

Fine of not less than RM200 and not more than RM20,000

Or

Imprisonment not exceeding 6 months

or both


40

Updates

• The IRB has issued new Forms CP 21 and Forms CP 22A in year 2015.

• The IRB has announced that the older versions of Forms CP 21 and CP

22A may no longer be used.


Preparing the

Form E


C.P.8D – Pin 2015

Form E

Statement of Remuneration from Employment for the year ended 31 December 2015 and information in relation to the Monthly Tax Deduction pursuant to the Income Tax (Deduction from Remuneration) Rules 1994

To complete the required information on the form for employees where either of the following conditions are met :-

a) Annual gross remuneration is more than RM34,000 ;or

b) Where (a) above is not met, the monthly gross remuneration is more than RM2,800.


Part A: Number of employees for the year ended

31 December 2015



Part B: Declaration



Form E

C.P.8D – Pin 2015

Form E : Form C.P. 8D


Part E : Total Gross

Remuneration

(including benefits-in-kind

and value of living

accommodation benefit

provided but excluding

remuneration in arrears in

respect of preceding years)

Form E

C.P.8D – Pin 2015



Part F : Tax Exempt

Allowances /

Perquisites / Gifts /

Benefits

Form EA

Form E

C.P.8D – Pin 2015



Part G and H: Total Tax

Deduction

- MTD

- CP38

Form EA

Preparing the

Form EA


Form EA

• Annual statement prepared by the employer that discloses the remuneration

details of an employee.

• Includes remuneration where cost is borne by the local entity.

• Where remuneration is borne (partly / fully) by the home country, a letter of

confirmation of compensation details is required from the home country entity.


Part A: Particulars of the employee


• Full name of the employee

• Job designation

• Staff number / payroll number

• New Identity Card number / Passport number

• EPF number

• Where the period of employment is less than one year

Date of commencement

Date of cessation


Part B: Employment income, benefits and living

accommodation



Part B: Item 1


• Section 13(1)(a) of the Income Tax Act, 1967 (the Act)

• Wages, gross salary, leave pay (including overtime pay)

• Fee (including director’s fees*), commission or bonus*

• Gross tips, perquisites, awards / rewards or other allowances

• Tax borne by employer

Note: Declaration excludes allowances / perquisites / gifts / benefits which are

tax exempt



• Section 13(1)(a) of the Act

“… gross income of an employee in respect of gains or profits from an

employment includes any wages, salary, remuneration, leave pay, fee,

commission, bonus, gratuity, perquisite or allowance (whether in money or

otherwise) in respect of having or exercising the employment …”



• Common question / clarification needed on

• Not properly defined in the Act / Subjected to many interpretations

• Non-declaration of taxable perquisites

• Confusion between Perquisites and Benefits-in-Kind (BIK)

• Issuance of Public Rulings (PR) to provide clarity


Perquisites



Perquisites

• Benefits in cash or in kind

convertible into money

• Received from employer or third

parties

• Gross income from employment

• Taxable under Section13(1)(a)

Benefits-in-kind

• Benefits not convertible into money

even though they have monetary

value

• ‘Not convertible into money’ means

benefit cannot be sold, assigned or

exchanged for cash

• Gross income from employment

• Taxable under Section 13(1)(b)


Types of perquisites

• Pecuniary liability of employees paid by employer, such as income tax payment,

electricity bills, water and telephone bills, car insurance premium, road tax,

parking fees and car maintenance charges

• Recreational club membership

• Tuition of school fees of child

• Life insurance premiums

• Gardener, driver, domestic help or guard

• Assets given free of charge or sold at a discount

• Gift vouchers

• Professional subscriptions

• Equity award



• Employee’s pecuniary liabilities

− Paid by employer contractually or voluntarily irrespective whether the

payment

• Is made directly to the person who should receive amount owing

• Given to the employee to settle his pecuniary liability

• Given to the employee as a reimbursement

• Amount chargeable to tax as perquisites may be reduced if amenities are

used for official duties (which can be substantiated with certification by the

employer)



• Recreational club membership

− Individual membership

− What is taxable?

• Entrance fee

• Monthly / annual subscription fee

• Gardener, Driver, Domestic Helper, Guard

− Hired by employee

− Reimbursed by employer



• Assets provided free of charge or sold at discounted price

− The difference between the market price of such assets and the amount paid

by employee (if any) is perquisite to the employee

• Gift voucher

− Not taxable unless they are of a recurring nature and where employee

expects such gifts as part of his remuneration

− Gift vouchers given on festive occasions based on the employee’s length of

service is this taxable?



• Service Excellence and Long Service Awards

− Perquisites on awards to be extended to innovation, productivity and

efficiency awards such as Six Sigma Award

− Exemption of RM2,000 per year.

RESTRICTIONS

Service Award

- cannot be disguised as wages;

- must be awarded as part of a meaningful contribution to the organisation; and

- is not provided frequently to the same employee

Long Service Award – additional condition

- Has served more than 10 years service with the same employer.



• Professional subscriptions

− Not taxable if membership to that professional body is essential to business

of employer

• Travelling allowance

− Taxable as perquisite. Petrol card or petrol allowance or travel allowance and

toll card for official duties exempted up to RM6,000 per year (from YA

2008)

• Allowances or subsidies for childcare

− Up to RM2,400 per year



• ESOS – upon exercise of right by employee

• RSU – upon vesting of the RSU

− To report the benefit in the Form EA of the employee for the year the option is

exercised/RSU vest

- To submit a copy of the names of employees who have exercised their rights

under an option to Employer’s Unit of the MIRB – Appendix C

- To comply with the provisions of Section 82A – records keeping


Part B: Item 2


• Section 13(1)(b) of the Act

• Taxable value of motorcar and petrol

• Driver

• Utilities

• Recreation club membership (corporate)

• Household furnishings, apparatus and appliances

• Domestic servant and gardener

• Leave passage (net)

• Other items



• Benefits-in-kind (BIK)

− Not convertible into money, cannot be sold, assigned or exchanged for cash

− Provided by or on behalf of employer to be personally enjoyed by the

employee

• Determination of BIK

− Formula method

− Prescribed value method

− Basis of computing the benefit must be consistently applied



• Motorcar and other related benefits

− Private usage – Taxable

− Private usage

• Used for travelling between the office and home

• Kept at employee’s home

− Taxable value:

• Formula method i.e. cost of asset / prescribed life span

• MIRB’s prescribed value

• Also applicable to secondhand and leased / rented motorcar



• Driver

− Taxable value is RM 600 per month

− Pool drivers Not taxable

• Furniture and fittings


Type of benefit Annual

prescribed value

1 Semi-furnished (furniture in lounge, dining room or

bedroom)

RM840

2 Semi-furnished (furniture in column 1 plus air

conditional / curtains / carpets)

RM1,680

3 Fully furnished (furniture in column 2 plus kitchen

equipment / crockery / utensils / appliances)

RM3,360

4 Service charges & utilities Amount paid

Preparing the Form EA• Recreation club membership



• Leave passage

A benefit in the form of leave passage is not assessable as an employment

income under the following conditions:-

i. Leave passage for travel within Malaysia not exceeding three times in

any calendar year; or

ii. One leave passage for travel between Malaysia and any place outside

Malaysia in any calendar year, limited to a maximum value of RM 3,000.

The leave passage benefit, however, is confined to only the employee and

members of his immediate family

Benefit of meals & accommodation provided to employee pursuant to local

leave passage is inclusive in the exemption (from 2007 onwards).

If the benefit does not fall within the above conditions, it will be subject to

tax under paragraph 13(1)(b) of the Act



• Goods and services offered at discounted prices

− Value of discount of goods exceeding RM1,000 a year is taxable


Part B: Item 3


• Section 13(1)(c) of the Act

• Value of living accommodation

− Value of the unfurnished accommodation

− Amount in respect of the use or enjoyment by the employee of living

accommodation in Malaysia (including living accommodation in premises

occupied by his employer) provided for the employee by or on behalf of the

employer rent free or otherwise

− Includes benefit for the spouse, family, servants, dependants or guests

− Effective year of assessment 2009, gross income in respect of the right to

acquire shares in a company is excluded from the employee’s gross

income under paragraph 13(1)(a) of the Act only for the purposes of

determining the value of living accommodation



Living accommodation provided for employee or service director by the employer:-

Defined value of the living accommodation

Or

30% of the gross income from employment under Section 13(1)(a) of the

Income Tax Act

Whichever is lesser


72


If the living accommodation provided for employee or service director by the

employer is a hotel:-

3% of the gross income from employment under Section 13(1)(a) of the

Income Tax Act


Part B: Item 4


• Section 13(1)(d) of the Act

• Receipts from unapproved Pension / Provident Funds


Part B: Item 5


• Section 13(1)(e) of the Act

• Compensation for loss of employment


75

Preparing the Form EAPart B – Item 5

Exemption on compensation for loss of employment


Applicable on

Amount paid:-

• For the reason of an compensation for loss or employment; or

• In consideration of any covenant entered into by the employee restricting his right to

take up other employment of the same or a similar kind

Criteria to meet for exemption Exemption available

If payment is made on account of loss of

employment due to ill health(the health condition of the employee has to be certified

by a Medical Board)

Full exemption

If the employee has a period of employment with

the same employer or with companies in a group.

This includes a separation scheme provided that

the scheme did not expressly or impliedly provide

for the employee to be reemployed under any

other scheme of employment by the same or any

other employment

RM10,000 for each completed year

of service with the same employer

or with companies in the same

group

The above exemption do not apply to payment by a controlled company to a

director of a company, who is not a full-time service director

Part C: Pension and others


• Pensions

• Annuities or other periodical payments


Part D: Total deductions


• Current year Monthly Tax Deductions* (MTD)

• CP 38 deductions

• Zakat payments

*exclude MTD payments on remuneration paid in arrears in the year


Part E: Contribution to approved

pension/provident fund, scheme or society


• Employee’s contribution

• Approved fund


Part F: Payment in arrears and other payments in

respect of preceding years


• EPF and MTD amounts: in respect of arrears payments

• Excludes bonus and director fees: taxed in year of receipt


Case study 1


Expatriate payroll and benefits – monthly summary for 2015

Payroll items Jan Feb Mar Apr May June Jul Aug Sept Oct Nov Dec Total

Basic salary 25,000 25,000 25,000 25,000 25,000 27,500 27,500 27,500 27,500 27,500 27,500 27,500 317,500

COLA 2,500 2,500 2,500 2,500 2,500 2,750 2,750 2,750 2,750 2,750 2,750 2,750 31,750

Meal allowance 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Travelling allowance 500 500 500 500 500 500 500 500 500 500 500 500 6,000

Bonus (for 2014) - 55,000 - - - - - - - - - - 55,000

Shares - - - - - - 12,000 - - - - - 12,000

Benefits

Electricity /Water/Gas 982 1,080 867 1,290 905 982 886 980 1,222 1,108 1,008 987 12,296

Gift vouchers 50 - - 50 - 50 - - 50 - - 200

Productivity award 2,500 158 2,658

Mobile phone 188 188 188 188 188 188 188 188 188 188 188 188 2,256

Fuel 300 - 423 - 289 - 304 - 189 - - 256 1,761

Hotel expenses/temporary accommodation (1 week)

3,500 3,500

Home Leave - - - - - - 5,158 - 10,165 - - - 15,323

Parking and toll 255 255 255 255 255 255 255 255 255 255 255 255 3,060

School Fees - - 3,215 - - 2,905 - - 2,860 - - 8,980

Loan interest subsidy 1,500 1,500 1,500 1,500 6,000

Professional subscription - - - - - - - 2,500 - - - - 2,500

Medical /dental /optical expenses - 80 - - - - 869 - - 500 - - 1,449

House furniture & furnishings3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500

42,000

Rental of additional furniture8,000

8,000

House Rent 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000

Car Lease5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500

66,000

House Maintenance - - - 2,489 - - - - 975 - - - 3,464

Club fees135 135 135 135 135 135 135 135 135 135 135 135

1,620

Case study 2

• Employee A commenced employment with DTT Berhad on 1 March 2011 and

resigned on 30 June 2015 and received a gratuity of RM250,000 from the

company.

• Employee B commenced employment with DTT Berhad on 1 Feb 2012. She

was transferred to BTT Sdn. Bhd. (a subsidiary of DTT Berhad) on 14 Jan 2014.

She resigned on 1 Oct 2015 and was paid a gratuity of RM250,000.

• Employee C commenced employment with DTT Berhad on 1 Jan 2010. Due to

downturn of the economy, her business unit was shut down permanently on 30

June 2015 and she received a payment of RM250,000 from the company.

Question :

How would the payments be reported in the respective employee’s Form EA?


83

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Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more

than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business

challenges. Deloitte’s more than 210,000 professionals are committed to becoming the standard of excellence.

About Deloitte Southeast Asia

Deloitte Southeast Asia Ltd – a member firm of Deloitte Tohmatsu Limited comprising Deloitte practices operating in Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar,

Philippines, Singapore, Thailand and Vietnam – was established to deliver measurable value to the particular demands of increasingly intra-regional and fast growing companies and

enterprises.

Comprising over 270 partners and 6,600 professionals in 24 office locations, the subsidiaries and affiliates of Deloitte Southeast Asia Ltd combine their technical expertise and deep

industry knowledge to deliver consistent high quality services to companies in the region.

All services are provided through the individual country practices, their subsidiaries and affiliates which are separate and independent legal entities.

About Deloitte Malaysia

In Malaysia, services are provided by Deloitte Tax Services Sdn Bhd and its affiliates.

Disclaimer

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte network”) is, by

means of this communication, rendering professional advice or services. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies

on this communication.

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