Optional Tax Relief

Optional tax relief records reliefs that lower an employee's tax for the period. Tax relief is an amount the tax rules let an employee subtract from their taxable income — for example, certain insurance, medical or lifestyle expenses.

When to use it

Use it when an employee gives you details of a relief they are entitled to, so their monthly tax is reduced accordingly. This usually comes from the employee's own declaration (such as a TP-1 form).

How to add it

1. In the menu, go to Payroll → Payroll Items → Optional Tax Relief.
2. Choose the employee.
3. Select the type of relief and enter the amount.
4. Set the period.
5. Click Save.

The system uses the relief to reduce the employee's monthly tax (PCB).

tip

Ask employees to provide supporting documents for any relief they claim, and keep them on file. The employee is responsible for making sure the relief is correct.

note

Some reliefs are fixed and built into the tax calculation already. Use this page for the optional reliefs an employee chooses to declare.