Thursday, November 20, 2008

EPF employee deduction 11% and 8%

For those income earning that are subjected to tax, check out the EPF deduction against the taxable income below (example).

If salary = RM4,000,
- choose EPF 11% is RM440, taxable income is RM3,560, so tax is RM77

- choose EPF 8% is RM320, taxable income is RM3,680, so tax is RM109

Is this possible? Is the government trying to ripoff the rakyat. 8% EPF deduction may result the salary earner getting more take-home amount but he or she is also paying more tax !

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