Details

Published: 17 April 2020

1. What are the components of wage?
   • Payments which are subject to EPF contribution include:
     • Salary
     • Bonus
     • Allowance
     • Commission
     • Incentives
     • Arrears of salaries
     • Payment in respect of unutilised annual or medical leave
     • Paid maternity leave
     • Paid study leave

2. What are non-wages?
   • Payments which are not liable for EPF contribution are:
     • Service charge
     • Overtime payment
     • Gratituity
     • Retirement benefits
     • Retrenchment
     • Temporary lay-off & termination benefits
     • Payment in lieu of notice of termination of employment
     • Travelling allowance or the value of any travelling concession
   • * The above list is not exhaustive.

3. Can the monthly contributions be paid bimonthly or combined as one month?
   • According to Section 43(1), EPF Act 1991 , employers must pay on a monthly basis.

4. What should an employer do if he/she wishes to contribute more than the stipulated rate for employer’s share?
   • An employer can make a Voluntary Excess (VE) Contribution by completing Form KWSP 17 (MAJ) - Notice to Contribute More Than Statutory Rate (Employer). The contribution paid must be rounded up to the nearest ringgit and must not be backdated.

5. If an employee chooses to contribute more than the stipulated rate, can the employer deduct from the employee’s own salary for that purpose?
   • Yes you can, but only if the employee has opted for Voluntary Excess (VE) Contribution and after completing Form KWSP 17A (AHL) - Notice to Contribute More Than Statutory Rate (Employee).

6. Are salaries paid by hour subject to EPF contribution?
   • Yes, if an employee works any day in a month and receives wages in excess of RM10.00 (whether of daily, hourly or piece-rated salary), he/she is liable to make an EPF contribution.

7. Who does ‘Employee Liable to Contribute’ refer to?
   • Permanent employees
   • Contract employees
   • Part time employees
   • Temporary employees
   • Probationary employees
   • Directors receiving salary/wages
   • Employees who have made full withdrawal under the Incapacitation Withdrawal and have since recovered and are re-employed in any service
   • Employees who have made a 55 Years Withdrawal and are below 75 years old and still working in any occupation
   • Employees who have made a Pensionable Employees and Optional Retirement Withdrawal and are working with employers other than the Federal or State Governments, or any statutory bodies or local authorities
   • Employees who have made Pensionable Employees Withdrawal and were re-employed after the retirement age

8. Is a part-time worker or employee who works with more than one employer subject to EPF contribution?
   • Yes, they are subject to EPF contribution

9. Do non-Malaysian employees have to contribute?
   • No, non-Malaysian employees are not required to contribute, but they are given the option to contribute. If an employee has opted to contribute, he/she and the employer are liable to contribute and not allowed to revoke the option made.

10. Do foreign companies hiring Malaysian citizens need to contribute?
    • Yes, if the foreign company has registered and is operating in Malaysia.

11. Can an employer deduct the employer’s share of contribution from an employee’s salary?
    • No. According to Section 47(1) of the EPF Act 1991, any employer who makes deductions or attempts to make deductions from an employee's wages or remuneration, either whole or in any part of the employer's contribution, faces imprisonment for no more than six years or a fine of not more than RM20,000, or both.

Details

Published: 14 April 2020

As Malaysia Government has further extended the movement control order to 28/04/2020, Custom Malaysia has further extended the submission due date until 13 May 2020 for those forms (SST Return, including Sales and Service Tax for the period of Jan'20 to Feb'20 and Feb'20 to Mar'20) due on 31 March 2020 and 30 April 2020.

Details

Published: 14 April 2020

Due to government's extension on the Movement Control Order, our Malaysia office will be continued closed between 15/04/2020 (Wednesday) to 28/04/2020 (Tuesday). We will try our best to have all correspondence via email & WhatsApp during this period and we sincerely apologies for any delay in replying.

Sorry for any inconvenience caused and thanks for your understanding.

Details

Published: 13 April 2020

Some Malaysia authorities have extended the submission and payment due date again.

Companies:

SST: Tax on certain manufacturing and services 对特定制造业及服务征收的销售与服务税

Withholding Tax: Tax withhold from non-registered person (payee outside Malaysia) and pay back to LHDN within one month from the date of payment 从国外收款人的款项中扣除，并在付款后一个月内呈报给马来西亚内陆税收局

Form C: Company income tax 公司所得税

CP 204: Tax estimated by company before the financial year and pay instalment to LHDN every month 在财政年度之前预估，并分期预付的公司所得税

Business criteria for SME status are as follows:

i.Have a paid-up capital of less than or equal to RM2.5 million ordinary shares at the beginning of the basis period for a year of assessment; and

ii.Have a gross business income of RM50 million and below

* The sources of data that will be used by the IRBM in order to determine whether the SMEs qualify for the deferment of estimated tax payment is based on YA 2018 Return Form received by the IRBM

Enterprises:

Individuals

Form B: Personal (Tax resident) income tax who doing business in Malaysia 在马来西亚进行生意的个人所得税

Form BE: Personal (Tax resident) income tax who do not carry on business in Malaysia 在马来西亚没有进行生意的个人所得税

Form P: Partnership income tax 合伙生意所得税

Form M: Non-tax resident income tax (no matter whether doing business in Malaysia, also inclusive employment income) 非税务居民的个人所得税（包括工资收入）

CP500: Tax instalment calculated by government according to previous income 政府根据之前公司收入预估的预付所得税

Employers:

Form E: Return form by employer on employee remuneration for previous year 呈报上一年员工薪酬的表格（每间公司无论前一年是否有聘请任何员工都需要呈报）

EPF: Statutory contribution for retirement funds 法定雇员公积金

SOCSO: Social Security Insurance 社会保险

EIS: Employment Insurance 就业保险

PCB: Monthly tax deduction which is a system of tax recovery where employers make deductions from their employees’ remuneration every month in accordance with the MTD Schedule 根据税务系统算出的员工的预付所得税

Details

Published: 08 April 2020

Government has widened the eligibility criteria and increase the subsidy amount for Wage Subsidy Programme for local workers earning not more than RM4,000 for a period of 3 months

Effective from: April

Last application date: 15 September 2020

Effective period: 3 months

Supporting documents:

• List of employee names;
• Employer's bank account information (Copy of Bank Statement cover only);
• Business Registration Number (BRN) information registered by the employer at the time of opening the bank account;
• Copy of SSM / ROS / ROB / Professional, Scientific or Technical Services / Business License authority;
• Professional, Scientific or Technical / Business License;
• PSU50 Account Declaration*; and
• Supporting documents such as financial statements or sales reports that have been verified by management or other related documents.

* PSU50 can be downloaded HERE and Employee Listing can be downloaded HERE while BRN can be downloaded HERE also.

Employer can apply for WSP although received ERP (Employment Retention Program) before this. But they cannot apply WSP for those employees who receiving ERP at the same month

If a voluntary termination of an employee occurs within the first 3 months of the Wage Subsidy Program, the employer will only need to update the employee's eligibility information in the system

If an employee works with Company A and Company B and contributes to SOCSO, both companies are eligible to apply for the Wage Subsidy Program

The employer will be notified of the status of the application whether approved or rejected by email. The list of employers who have approved the Wage Subsidy Program application will also appear on the SOCSO website; eiscentre.perkeso.gov.my includes the number of approved employees