Tax Planning for Malaysian Employees is a source of reference on the taxability of income, the deduction of expenses, tax reliefs and rebates available to employees with the objective of helping them to pay the correct amount of income tax. The research is based on the Income Tax Act 1967, case laws and also the Inland Revenue guidelines and Public Rulings. Wherever possible, tax planning opportunities are present to assist them in taking advantage of the tax avoidance schemes available in the Act.rnrnWith effect from the year 2004, employees will be placed on self-assessment. With this come the responsibility to compute their income tax payable in accordance with the Income Tax Act 1967, Public Rulings, and Inland Revenue Practices would be shifted to them from the Inland Revenue Board under the former assessment system. Monetary penalties will be imposed for non-compliance with the Act or the understatement of income tax. It is therefore important for employees to have adequate knowledge on the operation of the Income Tax Act to ensure that they are paying the legally required tax and avoiding unnecessary tax penalties.
