1. Increase your EPF Contribution
The employer’s portion of EPF will not be subject to personal income tax for the employee (regardless of any % contributed by the employer).
However, from the employer’s perspective, tax deduction can only be claimed up to 19% for the employer’s tax purposes.
2. Restructure your Remuneration Package
Income tax (exemption)
Petrol card/petrol or travel allowances and toll rates
Total amount paid by employer. Exemption up to RM6,000 per annum if the allowances/perquisites are for official duties
Childcare subsidies /allowances
Total amount paid by employer. Exemption up to RM2,400 per annum
Interest on loan subsidies
Loans totaling RM300,000 for housing/passenger motor vehicles and education**
Telephone and mobile phone, telephone bills, pager, personal data assistant (PDA) and internet subscription
Medical or dental treatment for employee and immediate family
Leave passage but restricted to 3 local trips; and RM3,000 per family for 1 overseas trip (restricted to air fare, insurance & transit cost)
Note: If you received benefit in kind from your company, these benefit are taxed at reduced rate. Please refer to the detail at benefit-in-kind