• What is Income Tax Information


Admins can quickly update employees’ income tax information via the Payroll > Compensation page.



  • To update income tax information:


1. On the left panel of your admin dashboard, click Others > Payroll > Compensation.


2. Search for the employee's name.


3. On the right of the employee's name, click View.






4. Select Income Tax.





5. Head to the Income Tax section to update the details.




6. Scroll down. Confirm by clicking Confirm.





  • Additional information on income tax: 


Resident status



(A) Resident


If you are a resident of Malaysia, the tax relief follows the LHDN employee’s

categories. There are 3 categories available.


● Category 1 : Single (where RM9000 will be deducted from the gross annual

salary)


● Category 2 : Married and spouse is not working (where RM4000 will be

deducted from the gross annual salary)


● Category 3 : Married and spouse is working (where no deduction applied

for individual filing)



(B) Non-Resident


Their tax deduction is rather simpler as it is taxed at 30% of the monthly salary. This

also means, they are not entitled to any resident’s tax relief such as child relief and

lifestyle relief


(C) Knowledge Worker

These are for the employees who work specifically in the Iskandar region of Johor

state, where they will be taxed at 15% flat rate.


(D) Returning Expert

These are the Malaysian professionals living abroad and returning to work in Malaysia,

where they will be taxed at 15% flat rate as well.





  • To understand more on how to manage employee compensation, watch this video: