3/20 Way to slash individual TAXES

3) Ask your employer to increase your EPF contributions
Contributions to the employees Provident Fund (EPF) by employers are tax-exempt for the employees.

To reduce your taxable income , ask your employer to reduce your EPF monthly salary but increase your EPF contributions by the same amount.

Tax Deduction :
The deductible amount from your taxable income is dependent on the arrangement between you and your employer.

For Mr A : Mr A agrees to takle monthly pay cut of RM 1000 for an equivalent increase in his EPF contributions by his employer.At the end of the year , he receives an additional RM 12000 in his pension fund but his taxable income is reduced by the same amount.

The tax saving that he makes is RM 2880 ( RM12000@24%)