Payroll: What is the meaning of Maximum Amount for Tax Exempted Rule
Question : What is the meaning of Max. Amount for Tax Exempted Rule in maintain allowance? What will happen if the allowance paid is exceed the maximum amount?
It is a capping amount for tax exempted.
1) User maintained one allowance with rule 09002.
|Rule : 09002|
|Description : Petrol card, petrol allowance or travel allowance and toll card for office.|
|Max Amount : RM 6000|
6000 capping amount :
Allowance amount <= RM 6000 (max amount) is exempted from tax.
Any allowance amount exceeding RM 6000 is taxable.
2) User main another allowance with rule 09004
|Rule : 09004|
|Description : Meal Allowance.|
|Max Amount : Empty (zero capping amount)|
Unlimited capping amount:
There is no limitation which means all allowance amount is exempted from tax.
By : Aisyah 180724, Lay Swan 190109, P190109
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