by chongchooichooi » Fri Jun 18, 2010 10:40 am
As above question.
Thanks
(I'm adding to the OP's post what I think is his post from another thread--Lori)
Sir,
I have couple of questions in regard of tax deduction for keyman insurance. What type of company entitle for tax deduction, for keyman insurance ? Is Sole proprietor, Enterprise or Sdn Bhd company entitle ?
Thanks & regards,
Chong
Thanks
(I'm adding to the OP's post what I think is his post from another thread--Lori)
Sir,
I have couple of questions in regard of tax deduction for keyman insurance. What type of company entitle for tax deduction, for keyman insurance ? Is Sole proprietor, Enterprise or Sdn Bhd company entitle ?
Thanks & regards,
Chong
Posted: Sun Jun 20, 2010 03:31 am Post Subject:
Traditionally none. Key man policies are not deducted, and they receive the death benefit tax free accordingly.
Posted: Wed Jun 23, 2010 11:09 pm Post Subject:
A sole proprietor who has no employees has no need for a key person policy. The object of a key person policy is to protect the business from any resulting financial loss in the event of that person's death. Typical key persons are "CEO" and other "C suite" employees, sales manager/VP of sales and other similar executives, production superintendent, and so on.
A shift manager at Taco Bell would not truly fit the definition of a key employee. State insurance laws generally define hourly wage earners as not in the category of key persons.
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