Re: Retirement Gratuity
I got a information recently per the following
Pursuant to recent budget proposal 2016 in Malaysia, there is one proposal related to Retirement Gratuities (Intel used retirement gift which is equivalent to Retirement Gratuities) refer.
w.e.f. Y/A 2016, it is proposed that the tax exemption is extended to any sums received by way of gratuity on RETIREMENT from an employment under any written law or termination of a contract of employment other than under para 25, 25A, 25B, or 30A. Thus, this extended tax exemption will applicable and not limited to must served not less than 10 years with the same employer.
Tax exemption will now be max RM1,000 for every completed year of service.
Client stated that
I've attended a tax seminar. This proposal has been gazette. Please check with your legislative team why it's not confirm from your side.
Finance Act 2015 - New paragraph 25D, Schedule 6 of the Income Tax Act.
While I check the MTD but cannot find the same in either the MTD speech and MTD Guide. Can you kindly check if the same will impact MTD calculation and year end filing?