Are there differences if I take Director Salary vs Director Fee?St Admin
|Director Salary||Director Fee|
|Frequency||Generally fixed and pay regularly||Generally irregular and subject to resolution of the company|
|Need approval?||Not required||Decided by directors and subject to shareholders’ approval|
|Compulsory subject to EPF/Socso/EIS||Yes||No|
|Subject to PCB||Yes||Yes|
|Need to declare in personal tax||Definitely Yes!||Definitely Yes! **|
** With effective from YA2015, the director is deemed to be able to obtain on-demand the receipt of director fee in the basis period immediately following the relevant period. It means, the accrued director fee is deemed received in subsequent year & need to declare in personal tax, even though no payment is received by the director.