FAQ on Movement Control Order (by Human Resources Malaysia)
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Human Resources Malaysia just updated the FAQ on movement control order:
1. Employees who work under essential services as stated in Appendix A can be requested by employer to present to work. However, the employer shall reduce the workforce to the minimum or at least 50% of the quantity of employees.
The employers listed in the Appendix B may report to the nearest police station and request employee to present to work.
2. Employers shall pay full salary within the movement control order period (18/03/2020 to 31/03/2020). Daily rate employee shall be paid according to the rate as per listed the contract. For those workers whose salary are not fixed, their daily rate shall be not less than the minimum wage rate 2020.
3. Contract staffs shall also be paid in full salary.
4. Employer cannot force employee to take annual leave between the period.
5. The minimum eligibility period for the claimable RM600 from SIP is ONE month.
6. If the employees under the essential services sector as listed in the Appendix A refuse to work in the Movement Control Order period, the employer do not need to pay their salary.
7. Employer can request employee to work from home.
Movement Control Order in Malaysia
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As per Government’s recent announcement of the Movement Control Order, our Malaysia office will be temporary closed from 18/03/2020 (Wednesday) to 31/03/2020 (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.
* Note: Our Singapore office is opened as usual and can be contactable at +65 66746674.
Personal Income Tax Relief for YA2019
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e-Filing portal has been opened for income tax filing for YA2019
Form BE – Resident individuals who do not carry on business
Form B – Resident individuals who carry on business
Form P – Partnerships
Form M – Non-resident individuals
The due date for who do not carry on business for the above forms will be on 30/04/2020
For those who carry on business, the due date will be on 30/06/2020
Tax Relief for Resident Individual
Year of Assessment 2019
No. | Individual Relief Types | Amount (RM) |
1 | Individual and dependent relatives | 9,000 |
2 | Medical treatment, special needs and carer expenses for parents (Medical condition certified by medical practitioner) OR Parent | 5,000 (Restricted) 3000 (Restricted) |
3 | Basic supporting equipment for disabled self, spouse, child or parent | 6,000 (Restricted) |
4 | Disabled individual | 6,000 |
5 | Education fees (Self)
| 7,000 (Restricted) |
6 | Medical expenses for serious diseases for self, spouse or child | 6,000 (Restricted) |
7 | Complete medical examination for self, spouse, child (Restricted to 500) | |
8 | Lifestyle – Expenses for the use / benefit of self, spouse or child in respect of:
| 2,500 (Restricted) |
9 | Purchase of breastfeeding equipment for own use for a child aged 2 years and below (Deduction allowed once in every 2 years of assessment) | 1,000 (Restricted) |
10 | Child care fees to a registered child care centre / kindergarten for a child aged 6 years and below | 1000 (Restricted) |
11 | Net deposit in Skim Simpanan Pendidikan Nasional (Total deposit in 2019 MINUS total withdrawal in 2019) | 8,000 (Restricted) |
12 | Husband / wife / payment of alimony to former wife | 4,000 (Restricted) |
13 | Disabled husband / wife | 3,500 |
14 | Each unmarried child and under the age of 18 years old | 2,000 |
15 | Each unmarried child of 18 years and above who is receiving full-time education ("A-Level", certificate, matriculation or preparatory courses). | 2,000 |
16 | Each unmarried child of 18 years and above that:
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17 | Disabled child | 6,000 |
Additional exemption of RM8,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities | 8,000 | |
18 | Life insurance and EPF INCLUDING not through salary deduction
| 7,000 (Restricted) |
19 | Deferred Annuity and Private Retirement Scheme (PRS) - with effect from year assessment 2012 until year assessment 2021 | 3,000 (Restricted) |
20 | Education and medical insurance (INCLUDING not through salary deduction) | 3,000 (Restricted) |
21 | Contribution to the Social Security Organization (SOCSO) | 250 (Restricted) |
Source: LHDN
Digital Service Tax (DST)
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Facebook and Google Malaysia have announced that a 6% Digital Tax will take effect on its service starting next year (01/01/2020).
- Effective 1st January 2020, service tax shall be charged and levied on any digital service provided by a foreign registered person (FRP) to any consumer in Malaysia.
- The threshold is RM500,000.00 and rate is 6%. The registered person need to file a quarterly return.
- Digital Service is any service that is delivered or subscribed over the internet or other electronic network which cannot be obtained without the use of information technology and where the delivery of the service is essentially automated.
- What Kind of Services Considered as Digital Service?
- Software, application & video games (e.g. online licensing of software, updates and ad-ons website filters, firewalls, provision of mobile applications)
- Music, e-book and film (e.g. provision of music, live streaming services, include subscription-based media / membership)
- Advertisement and online platform (e.g. offering online advertising space on intangible media platform, offering platform to trade products or services)
- Search engines and social networks (e.g. customised search-engine services)
- Database and hosting (e.g. website hosting, online data warehousing, file-sharing and cloud storage services)
- Internet Based Telecommunication (e.g. Cloud-PABX, VOIP Phone)
- Online training (e.g. Provision of distance teaching, e-learning, online courses, webinar)
- Others (e.g. Subscription to online newspapers and journals, provision of other digital content like images, text, information and payment processing services)
** The provision of the above is not considered as digital services if: The services can be obtained without the use of IT
- Digital Service Tax is a tax charged on:
- Any digital service
- Provided by Foreign Service Provider
- To any consumer
- Foreign Service Provider is a person either business or individual outside Malaysia who provides digital services to consumer. FSP including person
- Who sell digital products directly or
- Who sell digital products indirectly through intermediaries such as online platform
- Online platform who makes transactions on behalf of the oversea service provider and issues invoice or any other document under their name, will be regarded as FSP
For example: Amazing.com who provide online platform to trade services or goods. Customer will purchases game from COC through Amazing.com. Amazing.com will issue invoice to customer. Under this scenario, Amazing.com is considered as FSP and Amazing.com will account service tax on digital services. - Consumer in Malaysia is any person who fulfils any two of the following:
- Makes payment for digital services using credit or debit facility provided by any financial institution or company in Malaysia
- Acquires digital services using an internet protocol address registered in Malaysia or an international mobile phone country code assigned to Malaysia
- Resides in Malaysia
- Where any payment is received before the effective date in connection with the provision of digital services that will be provided on or after the effective date, NO service tax on digital services shall be charged on the payment received
