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ALERT!! (Applicable for Malaysian only)
Wednesday, Nov 19, 2008 4:04PM / Standard Entry / Members only
NOTE:
Assume monthly basic salary is RM4000.
If your monthly EPF contribution is 11% ( RM440 ), taxable income = RM 3560, income tax payable = RM77.
If your monthly EPF contribution is 8% ( RM320 ), taxable income = RM 3680, income tax payable = RM109.
Conclusion: If you choose to contribute 8%, you will end up paying more income tax to the government, which will make the government richer.
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