How to file your taxes when you get retrenched?

According to LHDN on their website, compensation for the loss of employment is a payment made by an employer to his employee before or after the date of termination, and a certain amount of this payment is exempted from tax. The same applies to severance packages such as Voluntary Separation Schemes (VSS).

However, compensation received by a director (not service director) of a Control Company is fully taxable.

Sometimes, our interpretation of “termination benefits” may differ from the LHDN. Thus, should any complication occur, you must try to explain the issue with LHDN. If necessary, you may even need to engage a tax specialist fromEurogain to talk to LHDN.

Eurogain Tax Consultancy Sdn Bhd
(Sungai Besi, South KL)
c/o Eurogain Place Building,No 31-4, Jalan Tasik Selatan 3,Metro Centre, Bandar Tasik Selatan,57000 KL, Malaysia.
Tel: +603-9058 1020 / + 603-9058 1050/1080