Q1: When calculating PCB, would the tax exemption on allowances, BIK, and perquisites be included?
No, it is excluded from the remuneration for PCB purposes.
All the tax exemptions on allowances, perquisites, gifts, and benefits shall report in EA Form, Part F – TOTAL TAX EXEMPT ALLOWANCES / PERQUISITES / GIFTS / BENEFITS.
However, any amount exceeding the restricted amount shall be taxable.
Q2: How to calculate any amount exceeding the restricted amount?
Example
On Jan 22, the employee receives
| Child care allowance | RM3,000 (limit to RM2,400 per year) - The amount exceeding, RM600 is considered as an additional income. This amount is taxable. |
| Monthly salary | RM5,000 |
Hence, his total taxable remuneration is RM5,600.