Car Allowance is exempted up to RM6000 pa frm tax

No, no email regarding this from anyone yet.

Hi, got it, will take a look when I am free ^^

Hi,

Sorry for the late reply, just got time to study your document. I have gone through the PDF, and from my understanding:

1. The travel allowance in exercising employment is up to RM 6000 per year.
2. If proper records are kept, it may go beyond RM 6,000 per year.
3. There is no mention of monthly proportion of RM 500 in this regard.

So back to your question, at present moment there is no simple solution for travel allowance yet. The closest solution that I could offer is that, if you provide such travel allowance for your employee, then you could try using HR.my for payroll calculation, as it is much more flexible than the Payroll.my calculator. In HR.my, go to Variable Pay->Create "Travel Allowance RM500", but remember to uncheck the Tax contribution. Create another Variable Pay called "Extra Travel Allowance" and check the Tax contribution.

Each time when you are processing payroll, if the travel allowance is below 500, then you may just select the "Travel Allowance RM500", if it's beyond 500, then break it up into 2 portions, the 500 goes to "Travel Allowance RM500" and additional portion goes to "Extra Travel Allowance".

Admittedly, this is not an elegant solution, but that's the closest that I could offer for now. Sorry for any inconvenience caused.