M-update

 

Minimum wage in Malaysia (24/12/2012)

Malaysia’s first-ever minimum wage policy that requires employers to pay at least RM900 per month for their workers in Peninsular Malaysia or RM800 per month for those in Sabah and Sarawak is set to take effect from Jan 1, 2013. The exception, nevertheless, applies to employers who hire not more than five workers. The date of enforcement for this group of employers will be July 1, 2013. For more information, please refer to www.mohr.gov.my.

 

Minimum wage of SMEs deferred (22/03/13)

Minimum wage for foreign workers of SMEs has been deferred until Dec 31, 2013. However, the SMEs still have to abide by the law which required them to pay the minimum wage to Malaysian workers. Apart from the SMEs, other employers could appeal individually to the NWCC secretariat if they faced any complications and wanted to defer implementing minimum wage for their workers.

 

EPF introduces e-Contribution (9/4/13)

EPF introduces e-Contribution, an online facility that allows employers to remit EPF contributions through i-Akaun on my EPF website (www.kwsp.gov.my). Three main services are provided through e-Contribution including remittance of payment with Form A, submission of Form A only and remittance of payment only.

 

Companies (Amendment of Schedule) Order 2013 (12/4/13)

SSM is pleased to notify that effective from 1 April 2013, the fee for incorporation of companies having authorized share capital up to RM400,000 is RM1,000.

 

New Online IBG and Cheque Transaction Fees (24/4/13)

From 2/5/2013 onwards, the fee for Interbank GIRO (IBG) transactions performed online will be reduced to 10 cent. However, the charge for cheques will be progressively increased. Effective from 1/4/2014, banks will charge a processing fee of 50 cent for issuing cheques in addition to the existing stamp duty of 15 cent per cheque leaf.

 

Minimum Retirement Age (21/05/13)

The Minimum Retirement Age Act 2012 for the private sector will be implemented from July 1, 2013. The Act stipulates that the minimum retirement age of an employee shall be 60.

 

E-caruman for newly registered employers (07/08/13)

Effective Aug 1, 2013, all newly registered employers are required to submit their monthly employees' monthly contribution details (form A) online via e-Caruman.

 

Barred from leaving the country for tax defaulters (18/10/13)

Effective October 2013, the Inland Revenue Board of Malaysia (IRBM) will intensify its efforts to target taxpayers who fail to pay their outstanding tax debt. Following the issuance of a reminder letter and notice of outstanding tax to the tax defaulter, he will be prevented from leaving the country, unless and until he pays all the tax debts. 

 

Highlights of Budget 2014 (29/10/13)

1.  GST to be enforced 1 April 2015 at rate 6% to replace sales & service tax.

2.  Personal income tax rates is reduced by 1% - 3% in 2015.

3.  From YA 2016, corporate income tax rates is decreased by 1%.

4.  A special tax relief of RM2,000 be given to tax payers with a monthly income up to RM8,000 received  in 2013.

5.  For employees who contribute monthly MTD, they are not required to submit tax return if satisfied their MTD is a final tax.

6.  For gains on properties disposed within the holding period of up to three years, the RPGT rate is increased to 30%, whereas for disposals within the holding period of up to four and five years, the rates are increased to 20% and 15%, respectively. For disposals made in the sixth and subsequent years, no RPGT is imposed on citizens, whereas companies are taxed at 5%.

7.  Raise the minimum price of property that can be purchased by foreigners from RM 500,000 to RM 1 million.

8.  Prohibit developers from implementing projects that have features of DIBS

9.  Tax and secretarial fees are deductible from YA 2015.

10. To encourage Minimum Wage Policy compliance, further tax deduction proposed with regard to the difference in the wages paid by employers in 2014.

 

Minimum wage fully enforced on Jan 1, 2014 4/11/13

The implementation of minimum wage of RM 900 a month in the Peninsular and RM 800 in Sabah, Sarawak and Labuan will be fully enforced on Jan 1, 2014. Actions will be taken against errant employers who failed to implement the minimum wage policy. 

 

Cheque processing fees increase delayed to 2015 (24/03/2014)

The 50 cent cheque processing fee (previously free) which was planned to take effect on April 1, 2014 has now been postponed to 2015.

 

Registration for GST opens June 1 (6/6/14)

A taxable person who is required to be registered under the GST regulations can start registering with the Royal Malaysian Customs Department (RMCD) from June 1. Registration is mandatory for businesses with annual turnover that has exceeded the prescribed threshold RM 500,000. All the registrations must be done by 31/12/2014 in order to avoid late registration penalty.