Page 4 - P6 Slide Taxation - Lecture Day 7 - Various Topics
P. 4
The way life goes….
Work Retirement
Provides fro retirement: Make contributions to:
- PF
- PrF Compulsory ito salary package
- RAF → Employee acquires it from insurance co
Who makes the monthly contributions?
If the employer makes
contributions:From1/3/2016 Employer gets s 11(ℓ)
- PF → NEW: fringe benefit. deduction
- PrF → NEW: fringe benefit.
- RAF → fringe benefit (par 2(h) 7 Schedule
th
AND Chpt 11.4.17)
Deduction in the employee’s tax calculation?
Before 1/3/2016 NEW: From 1/3/2016
PF → s 11(k) for contributions paid by employee all contributions
PrF → No deduction available [s 23(m)] deductible ito s11(k)
RAF → s 11(n) for contributions paid by employee
Plus: contributions made by employer if it was
taxed in the hands of the employee.
