Part 1: Let see how fair is our TAXXX between Private & Public Sector
Assalamualaikum w.b.t.,
Budget 2013 just tabled by PieeM. And it is said that for those tax fall below 24% will be reduce for 1%. Let say our tax fall under 19% (RM70K level) and 12% (RM45K level) then we will get 1% reduction. Correct me if I am wrong.
Many people did contact me especially young graduates to get advice the best place to work. Ha!x5, I'm not the financial adviser and also work for government human resource department (HRD). Even I think, we don't need those two department because we have very prudent smart national financial controller and human resource planner, namely PieeeeM and TrrrrPieeeM.
What ever "lah"... Please correct me if my simulation below is wrong... errr..eee. errrr... My promise to compare both tax and will guide... oppsss sorry, will share my opinion where is the best sector to work from what I see and what I heard and what I had experienced...
Part 1: Income Tax Point of View
I did some calculation to show about the tax that being so different between public and private sectors. And why many private sectors worker murmuring-whispering-mumbling about their income balance sheet compare to their friends in public sectors even though their monthly income in principal is the same.
First reason, you guys in private sector is paying higher income tax...
I'm using the same list of deduction apple to apple comparison to get taxable income. I deduct the income with below list for all level of income group. Please bare in mind. Public/Government sectors, their income = salary + allowance, where allowance is non taxable. Allowance is between 40% to 60%, in this case I just use flat allowance deduction rate of 50%.
Meaning to say, if in Private sector a man taxable income of RM100000.00, another guy in public sector with the same income is only RM50,000.00 taxable before other deductions being done. Refer to my old post in archive.
Summary:
1) In principal from the previous year, those with taxable income below RM35,000.00 a year is excluded from tax and entitle for RM400 tax rebate.
2) Those who in private sector with income RM100,000.00 was tax with RM7893.00 compare to their counterpart in public sector will get rebate for RM400.00.
3) The worst, for those who get paid RM200,000.00 in private sector have to pay tax of RM33,357.00 compare to public sector only RM7,893.00. RM25,464.00 difference. Wow, public sector save RM25,464.00. No wonder why government servant can buy luxury cars and buy big landed house. Who fall in this category in public sector? Usually Jusa-C/G54 or lower grade such G52.
4) Other category please see the comparison tax difference in the table above ranging from RM1,609.00 to RM25,464.00. The calculation just for these ranges of income group only. But from the graph you can estimate how much your tax figure difference at different level of your income yearly. Awesome figure...
If this figure wrong please let me know... I have "many-many" friends working in public sectors... At first I feel strange how they afford to have better cars and houses compare to me... Actually they have extra money from tax savings since they pay lesser income tax than me... Ha!x5, funny isn't it.. More funny when big clown tabled 2013 budget... Ha!x5, what so funny, you find yourself...
To be continued... Part 2:
Budget 2013 just tabled by PieeM. And it is said that for those tax fall below 24% will be reduce for 1%. Let say our tax fall under 19% (RM70K level) and 12% (RM45K level) then we will get 1% reduction. Correct me if I am wrong.
Many people did contact me especially young graduates to get advice the best place to work. Ha!x5, I'm not the financial adviser and also work for government human resource department (HRD). Even I think, we don't need those two department because we have very prudent smart national financial controller and human resource planner, namely PieeeeM and TrrrrPieeeM.
What ever "lah"... Please correct me if my simulation below is wrong... errr..eee. errrr... My promise to compare both tax and will guide... oppsss sorry, will share my opinion where is the best sector to work from what I see and what I heard and what I had experienced...
Part 1: Income Tax Point of View
I did some calculation to show about the tax that being so different between public and private sectors. And why many private sectors worker murmuring-whispering-mumbling about their income balance sheet compare to their friends in public sectors even though their monthly income in principal is the same.
First reason, you guys in private sector is paying higher income tax...
I'm using the same list of deduction apple to apple comparison to get taxable income. I deduct the income with below list for all level of income group. Please bare in mind. Public/Government sectors, their income = salary + allowance, where allowance is non taxable. Allowance is between 40% to 60%, in this case I just use flat allowance deduction rate of 50%.
Meaning to say, if in Private sector a man taxable income of RM100000.00, another guy in public sector with the same income is only RM50,000.00 taxable before other deductions being done. Refer to my old post in archive.
"Asas pengecualian cukai adalah sama bagi semua tahap pendapatan:
1)
Tolak
untuk individu RM9000.00
2)
Buku majalan RM1000.00
3)
SSPN RM3000.00
4)
Alat sukan RM300.00
5)
Jalur lebar RM500.00
6)
Anak 4 orang RM4000.00
7)
Takaful & KWSP RM6000.00
8)
Takaful pendidikan dan perubatan RM3000.00"
Summary:
1) In principal from the previous year, those with taxable income below RM35,000.00 a year is excluded from tax and entitle for RM400 tax rebate.
2) Those who in private sector with income RM100,000.00 was tax with RM7893.00 compare to their counterpart in public sector will get rebate for RM400.00.
3) The worst, for those who get paid RM200,000.00 in private sector have to pay tax of RM33,357.00 compare to public sector only RM7,893.00. RM25,464.00 difference. Wow, public sector save RM25,464.00. No wonder why government servant can buy luxury cars and buy big landed house. Who fall in this category in public sector? Usually Jusa-C/G54 or lower grade such G52.
4) Other category please see the comparison tax difference in the table above ranging from RM1,609.00 to RM25,464.00. The calculation just for these ranges of income group only. But from the graph you can estimate how much your tax figure difference at different level of your income yearly. Awesome figure...
If this figure wrong please let me know... I have "many-many" friends working in public sectors... At first I feel strange how they afford to have better cars and houses compare to me... Actually they have extra money from tax savings since they pay lesser income tax than me... Ha!x5, funny isn't it.. More funny when big clown tabled 2013 budget... Ha!x5, what so funny, you find yourself...
To be continued... Part 2:
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