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Sales & Service Tax (SST)

December 9, 2022

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Sales & Service Tax (SST)

 

What is sales tax?

Service tax are charged by registered manufacturers of taxable goods and on the importation of taxable goods into Malaysia.

  • General rate: goods are subject to sales tax at a rate of 10%
  • Specific rate: some goods are taxed at the reduced rate of 5%

 

What is service tax?

The rate for service tax is 6% for all taxable services. Services that are imported or exported are exempted from service tax.

 

Which businesses must apply for sales & service tax registration in Malaysia?

  1. SALES TAX
  • Taxable goods manufacturers are required / liable to be registered when SALES VALUE OF TAXABLE GOODS has exceeded RM500,000 for 12 months period.
  • Manufacturers who carry out sub-contract work on taxable goods where the VALUE of work performed exceeds RM500,000 for 12 months period.
  • Exempted Goods from Sales Tax
  • Books, magazines, newspapers, and journals
  • Cereals
  • Coffee and tea
  • Fertilizers
  • Goods manufactured for export
  • Insecticides and disinfectants
  • Live animals, fish and seafood, and eggs
  • Meat and edible meat offal
  • Pharmaceutical products
  • Spices
  • Wood pulp and waste of paper

 

  1. SERVICE TAX
  • List of Type of Taxable Services and Threshold
  • Any person with total amount of taxable services provided in 12 months exceed threshold below is liable to register.
Taxable Service Threshold
Group A: Accommodation RM500,000.00
Group B: Food & Beverages RM1,500,000.00
Group C: Night Club, Dance Halls, Health Centres, Massage Parlours, Public Houses, Beer House RM500,000.00
Group D: Private Clubs RM500,000.00
Group E: Gold Club & Golf Driving Range RM500,000.00
Group F: Betting & Gaming RM500,000.00
Group G: Professionals RM500,000.00
Group H: Credit Card/ Charge Card RM500,000.00
Group I: Other Service Providers RM500,000.00

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雇员公积金(EPF)

March 22, 2024

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什么是雇员公积金(EPF) 雇员公积金(EPF)是根据马来西亚法律(特别是《1991年员工公积金法案》(第452号法案))成立的社会保障机构,通过高效可靠地管理其成员的储蓄为其会员提供退休福利。雇主可以通过EPF轻松地履行他们对员工的法律和道德义务。 缴款是指公司往雇员的EPF账户缴纳一笔金额,这笔金额是使用员工的月薪,遵循雇员公积金设定的缴纳金额进行付款。对于收入或薪资低于RM5,000的工人,其缴纳比率为其每月工资的11%,而雇主的份额为13%。对于那些工资/薪资超过RM5,000的人,个人缴纳保持在11%,公司缴纳为12%。 缴款比率会根据马来西亚政策情况而变化,更多详细信息可以参考https://www.kwsp.gov.my/documents/20126/140690/Jadual+Ketiga+BI.pdf。 应缴纳雇员公积金(EPF)的人员 雇主有责任代表其员工缴纳EPF,无论员工是否受雇于服务合同或学徒合同,但不包括列于EPF法案1991年第一附表中的个人,其中包括: 兼职,临时和试用期员工。 从公司获得工资的董事。 无论是否在55岁或60岁后全额或部分退休,继续工作到75岁的雇员。 为联邦政府、州政府或任何法定机构或地方政府以外的雇主工作,并在根据《可养老员工和自愿退休提取法案》取出储蓄的雇员。 根据失能法案进行全额提款,随后恢复并以任何形式再次被雇用的员工。 最低年龄:就业年龄受《儿童和少年人(就业)法案1966》的约束。 最高年龄:75岁   支付薪金/工资以便缴纳雇员公积金(EPF) 无论是按月、按周、按日或其他基础约定支付的。根据雇佣或学徒合同应支付给员工的款项。以下是符合EPF缴纳资格的员工付款列表: 薪金 未使用的年假或病假的支付 奖金 津贴 佣金 奖励金 拖欠的工资 产假工资 学习假工资 半天假工资 其他根据服务合同或其他方式的付款   以下是不需要雇员公积金缴纳的付款清单: 服务费 加班费 恩惠金 退休福利 解雇、临时和停工终止福利 任何差旅津贴或差旅津贴的价值 终止雇佣通知的补偿金 董事费

WITHHOLDING TAX

March 15, 2024

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What is Withholding Tax ? Withholding tax is an amount withheld by the party making payment (payer) on income earned by a non-resident (payee) and paid to the Inland Revenue Board of Malaysia. Payment Subject to Withholding Tax The following types of payment are subject to withholding tax when paid: Contract payment Interest Royalty Special classes of income: technical inquiries, service fees, leasing or use of movable assets Income of public entertainers who are not tax residents Income under section 4(f) of the Income Tax Act 1967   When to pay Withholding Tax ? The payer must pay the withholding tax within one month after paying or crediting the recipient Consequences of failure in paying Withholding Tax Late payment penalties (10% of the unpaid tax) will be imposed

Employees Provident Fund (EPF)

March 8, 2024

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What Is Employees Provident Fund (EPF) The Employees Provident Fund (EPF) is a social security organization established in accordance with the laws of Malaysia, specifically the Employees Provident Fund Act 1991 (Act 452). It offers retirement benefits to its members through the efficient and dependable management of its members’ savings. Employers may easily fulfil their legal and ethical commitments to their workforce via the EPF. A contribution is the sum of money credited to a member’s personal EPF account. The sum using an employee’s monthly pay. Contribution amount follow group of range salary set by EPF. For workers whose earnings or salaries are less than RM5,000, rate of contribution is 11% of their monthly compensation, while the employer’s share is 13%. The individual contribution remains at 11% and the company contribution is 12% for those whose wages/salaries exceed RM5,000. The contribution rate might vary according to Malaysian politics, more details may refer to https://www.kwsp.gov.my/documents/20126/140690/Jadual+Ketiga+BI.pdf. Persons Obligated to Contribute Employees Provident Fund (EPF) Employers are required to make EPF payment on behalf of their staff in regardless staff under a contract of service or apprenticeship, with the exception of the individuals listed in the 1st Schedule of the EPF Act 1991, which includes: Part-time, temporary, and probationary employees. Directors who receive wages from the company. Employees who are continuing working up to the age of 75, regardless of whether they have or have not taken a full or partial retirement after turning 55 or 60. Employees who work for employers other than the federal, state, or any statutory bodies or local authorities and who have taken their savings under the Pensionable Employees and Optional Retirement Withdrawal Act. Employees who previously completed a full withdrawal under the Incapacitation Withdrawal, recovered thereafter and were hired again in any capacity. Minimum Age: Employment age is subject to Children and Young Persons (Employment) Act 1966. Maximum Age: 75 years   Salary/Wages Required To Contribute Employees Provident Fund (EPF) Whether it was agreed to be paid on a monthly, weekly, daily, or other basis. Payments due to an employee under the contract of employment or apprenticeship. List below payment to employee eligible for EPF contribution: Salary Payment for unutilized annual or medical leave Bonus Allowance Commission Incentive Arrears of wages Wages for maternity leave Wages for study leave Wages for half day leave Other payments under services contract or otherwise List below payment to employee not subject to EPF contribution: Service charges Overtime payment Gratuity Retirement benefits Retrenchment, temporary and lay-off termination benefits Any travelling allowance or the value of any travelling concession Payment in lieu of notice of termination of employment Director’s fee