Tax Exemption for KWSP (Employer Portion)
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asked on Nov 17, 2008 at 21:49
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siti H
edited on Jun 18, 2019 at 14:44
What will be the max percentage % if the company wants to pay high contribution, is it 16%?
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answered on Feb 26, 2009 at 15:43
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gtchye
edited Jun 18, 2019 at 14:44
I am not sure about the EPF Act (need to check first) but if you want to save tax, the Income Tax Act allows employers to contribute a maximum of 7% above statutory requirements without having the employees to pay tax.
The statutory rate for employers now is 12%, that means employers can contribute 19% and the employees are still not taxable on the additional 7%. If employers pay 20%, employees have to pay tax on that 1% extra.
The statutory rate for employers now is 12%, that means employers can contribute 19% and the employees are still not taxable on the additional 7%. If employers pay 20%, employees have to pay tax on that 1% extra.
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