Payroll Monthly Income Tax Statement Calculation -Monthly Tax Deduction
Below is a sample calculation for MTD which is automatically generated from the system to explain in details how the tax deduction is derived base on E-Kalkulator in IRB website.
| MTD to yearly net remuneration exclude the additional remuneration : |
TOTAL(RM) |
| MTD(A) / NetMTD |
=[((P-M)R + B – ( Z + X) )/n+1] – Zakat for current month |
|
|
| P |
=Total chargeable income for a year exclude [E(Y-K)+(Y1-K1)+[(Y2-K2)n] + (Yt-Kt)]-(D+S+Du+Su+QC+ELP+LP1) where(Yt-Kt) = 0 |
|
|
|
|
E(Y-K)= Total accumulated net remuneration including net additional remuneration which has been paid to an employee until before current month including net remuneration which has been paid by previous employer (if any); |
|
61561.5885543823 |
|
|
Y= Total accumulated net remuneration including net additional remuneration which has been paid to an employee until before current month including net remuneration which has been paid by previous employer (if any); |
|
64762.5885543823 |
|
|
K= Total contribution to EPF or Other Approved Funds made on all remuneration (monthly remuneration, additional remuneration and remuneration from previous employer on current year) or life insurance premium or both that was paid (including premium claimed under previous employment, if any) not exceeding RM6,000.00 per year; |
|
3201 |
|
|
Y1= Current month’s normal remuneration |
|
65486.68 |
|
|
K1= Contribution to EPF or Other Approved Funds and life insurance premium paid subject to total qualifying amount for current Month ‘s remuneration not exceeding RM6,000.00 per year; |
|
505 |
|
|
Y2= Estimated remuneration as per Y1 for the following month; |
|
65486.68 |
|
|
K2= Estimated balance of total contribution to EPF or other Approved Scheme and life insurance premium paid for the qualifying monthly balance [[RM6,000 (limited) – (K + K1 + Kt )]/n] or K1, whichever is lower |
|
458.80 |
|
|
n= Remaining working month in a year; |
|
5 |
|
|
n+1= Remaining working month in a year including current month; |
|
6 |
|
|
D= Deduction for individual; |
|
9000.00 |
|
|
S = Deduction for spouse of RM3,000.00; |
|
0 |
|
|
Du= Deduction for individual; |
|
0 |
|
|
Su= Deduction for disable spouse; |
|
0 |
|
|
Q= Deduction for eligible Children |
|
2000.00 |
|
|
C= The number of children eligible; |
|
9000.00 |
|
|
ELP= Other accumulated allowable deductions including from previous employment (if any); |
|
1800 |
|
|
LP1= Other allowable deductions for current month; |
|
0 |
|
| P |
= [E(64762.5885543823 – 3201) + (65486.68 – 505)+[(65486.68 – 458.80) X 5] + (0-0)] -(9000.00+0+0+0+0.00+1800+0) |
|
440882.67 |
|
| M |
= Amount of first chargeable income for every range of chargeable income a year; |
|
400000 |
|
| R |
= Percentage of tax rates; |
|
0.25 |
|
| B |
= Amount of tax on M less tax rebate for individual and spouse (if qualified); |
|
7102.2 |
|
| Z |
= Other allowable deductions for current month; |
|
60 |
|
| X |
= Other allowable deductions for current month; |
|
7102.2 |
| Yearly Tax |
|
86708.47 |
| Current Month MTD |
= [(440882.67 – 400000) X 0.25 + (83650) – (60+7102.2)]/(5 + 1) |
0 |
| MTD (A)/Net MTD |
= Current Month MTD – (10) |
14441.41 |
| 2 Yearly MTD : |
TOTAL (RM) |
|
| MTD (B): |
= (X) + [Current Month MTD (n+1)] |
|
|
|
(7102.2) + [0(5 + 1)] |
93810.67 |
|
| 3 Yearly Tax : |
TOTAL (RM) |
|
| CS: |
= (P-M)R + B |
|
|
|
| P |
= Total chargeable income for a year exclude [E(Y-K)+(Y1-K1)+[(Y2-K2)n] + (Yt-Kt)]-(D+S+Du+Su+QC+ELP+LP1) |
|
|
|
|
|
Yt= Gross additional remuneration for current month; |
|
1945 |
|
|
|
Kt= Contribution to EPF or Other Approved Funds for current month’s additional remuneration subject to total qualifying amount not exceeding RM6,000.00 per year; |
|
28 |
|
|
| P |
= [E(64762.5885543823 – 3201) + (65486.68 – 505)+[(65486.68 – 458.80) X 5] + (1945-28)] -(9000.00+0+0+0+0.00+1800+0) |
|
442827.67 |
|
|
(442827.67 – 400000)X0.25 + (83650) |
94356.92 |
|
| 4 Additional Remuneration MTD : |
TOTAL (RM) |
|
| MTD (C) |
CS – [MTD (B) + Accumulated Zakat that have been paid] |
|
|
|
94356.92-[93810.67 + 60] |
486.25 |
|
| 5 MTD Current Month : |
TOTAL (RM) |
|
| MTD |
MTD (A) + MTD (C) |
|
|
|
14441.41 + 486.25 |
14927.66 |
|
|
CALCULATION RESULT |
TOTAL (RM) |
|
Net MTD |
14441.41 |
|
MTD on additional remuneration |
486.25 |
|
MTD for month of Julyto be deducted (after rounding to the nearest upper 5 cent) |
14927.7 |
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