CPF Contribution and Allocation Rates from 1 January 2015
- Details
- Category: Singapore News
From 1 January 2015, the CPF contribution rates are increased to help employees save more for retirement and healthcare needs. The new contribution rates apply to wages earned from 1 January 2015.
Singapore and Uruguay Sign Agreement for Avoidance of Double Taxation
- Details
- Category: Singapore News
Singapore and Uruguay signed an Agreement for the Avoidance of Double Taxation (DTA) on 15 January 2015. The signing took place in Singapore between Ms Chiam Yah Fang, Chief Tax Policy Officer, Ministry of Finance and His Excellency Carlos Irigaray, Uruguay’s Ambassador to Singapore.
Singapore and France Revise Agreement for Avoidance of Double Taxation
- Details
- Category: Singapore News
Singapore and France have signed a revised Agreement for the Avoidance of Double Taxation (DTA). The revised DTA offers improved terms for businesses, such as lower withholding tax rates for dividends and includes anti-abuse provisions. The signing took place in Singapore yesterday between Mr Tharman Shanmugaratnam, the Singapore Deputy Prime Minister and Minister for Finance and Mr Michel Sapin, the French Minister of Finance and Public Accounts.
EPF Contribution Rate Reduce from 11% to 9% for Year 2021
- Details
- Category: Malaysia News
With reference to the Malaysia Budget 2021, the employee’s Employees Provident Fund (EPF) share of the statutory contribution rate will be reduced from 11% to 9% with effect from the salary month 1 January 2021 to 31 December 2021 (or EPF contribution month 02/2021 to 01/2022).
This new statutory contribution rate for employees applies only to members below 60 years old who are liable for contribution. For members aged 60 years old and above, the statutory contribution rate for employees remains unchanged.
Employers can complete the KWSP 17A Khas 2021 and submitt via i-Akaun (Employer), which will begin from 14 December 2020. Employers are also required to keep the form received for their record.
** The KWSP 17A Khas 2021 can be downloaded from https://www.kwsp.gov.my/documents/20126/147525/Borang+KWSP+17A+%28Khas+2021%29.xlsx
Malaysia Budget 2021 (Details)
- Details
- Category: Malaysia News
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- Proposed Income Tax Rate (With effect from YA2021)
Chargeable Income
Current
Tax Rate (%)
Tax Payable (RM)
0 – 5,000
0
-
5,001 – 20,000
1
0*
20,001 – 35,000
3
200*
35,001 – 50,000
8
1,8000
50,001 – 70,000
13
4,400
70,001 – 100,000
21
10,700
100,001 – 250,000
24
46,700
250,001 – 400,000
24.5
83,450
400,001 – 600,000
25
133,450
600,001 – 1,000,000
26
237,250
1,000,001 – 2,000,000
28
517,250
2,000,001 and above
30
- Tax Relief on Expenditures on Medical Treatment, Special Needs and Parental Care (With effect from YA2021)
- Income tax relief up to RM8,000 is eligible to be claimed by individual taxpayer on medical expenses and parental care limited to the following expenses:
- Treatment in clinics and hospitals
- Treatment in nursing homes
- Dental treatment not including cosmetics dental treatment
- Treatment and care at home, day care centres and home care centres
- Income tax relief up to RM8,000 is eligible to be claimed by individual taxpayer on medical expenses and parental care limited to the following expenses:
- Tax Relief for Medical Treatment Expenses for Self, Spouse and Child (With effect from YA2021)
- To alleviate the cost of medical treatment of taxpayer, spouse and child, and to encourage more Malaysians to be vaccinated, it is proposed that:
- The limit of tax relief on medical expenses for serious diseases for taxpayer, spouse and child fertility treatment for taxpayer and spouse be increased from up to RM6,000 to up to RM8,000
- The limit of tax relief for full medical check-up expenses be increased from up to RM500 to up to RM1,000
- The scope of tax relief for medical treatment expenses be expanded to include vaccination expenses up to RM1,000 for tax payer, spouse and child. The vaccines eligible for the tax relief are as follows:
- Pneumococcal
- Human Papillomavirus (HPV)
- Influenza
- Rotavirus
- Varicella
- Meningococcal
- Combination of tetanus-diphtheria-acellular pertussis (Tdap)
- COVID-19 (subject to the availability of the vaccine)
- To alleviate the cost of medical treatment of taxpayer, spouse and child, and to encourage more Malaysians to be vaccinated, it is proposed that:
- Income Tax Relief for Disable Spouse (With effect from YA2021)
- An individual taxpayer with a disabled spouse is given an additional tax relief of RM5,000
- Income Tax Relief on Contribution to Private Retirement Scheme (For YA2020 to YA2025)
- Income tax relief of up to RM3,000 on contribution to Private Retirement Scheme (PRS) is eligible to be claimed annually by individual taxpayers
- Income Tax Relief for Lifestyle (With effect from YA2021)
- Income tax relief limit for lifestyle up to RM2,500 is provided to an individual taxpayer on the purchase of reading materials including e-book, printed daily newspapers, computers, smartphones/tablets, internet subscriptions, sports equipment and gymnasium membership fees
- Another RM500 is allocated for the cost of purchasing sports equipment, entry/rental fees for sports facilities and participation fees in sports competitions
- Scope of relief for printed daily newspapers be expanded to include subscription for electronic newspapers
- Income Tax Relief on Net Annual Savings in the National Education Savings Scheme (For YA2020 to YA2022)
- Income tax relief of up to RM8,000 is given to an individual taxpayer for net annual savings in the National Education Savings Scheme (SSPN)
- Income Tax Relief for Expenses on Study Fees (With effect from YA2021 to YA2022)
- The tax relief is up to a maximum of RM7,000 a year
Level of Study
Field of Study
Certificate / Diploma / Bachelor
Law, accounting, Islamic finance, skills or vocational, technical, industrial, scientific and technological skills
Master / Doctorate
All fields
Others
Attending up-skilling and self-enhancement courses in any field of skills recognised by the Department of Skills Development, Ministry of Human Resources (maximum RM1,000)
- The tax relief is up to a maximum of RM7,000 a year
- Income Tax Relief on Compensation for Loss of Employment (For YA2020 to YA2021)
- Full exemption on income tax on compensation for loss of employment if the Director General of Inland Revenue is satisfied that the compensation is received due to health problems
- Exemption on income tax RM20,000 for each full year of service with the same employer or companies within the same group
- Stamp Duty Exemption for the Purchase of First Residential Home (For SPA executed from 1 January 2021 o 31 December 2025)
- 100% stamp duty exemption on instrument of transfer and loan agreement for the purchase of first residential home priced up to RM500,000 (by Malaysian citizens)
- Tax Incentives for Companies Relocating Their Operations to Malaysia and Undertaking New Investments (For manufacturing sector, applications received by the Malaysian Investment and Development Authority until 31 December 2022)
Investment in Fixed Asset
New Companies
Existing Companies
Tax Incentive
Period
Tax Incentive
Period
RM300 million – RM500 million
Income Tax Rate 0%
10 years
Investment Tax Allowance 100%
5 years
Above RM500 million
15 years
- Conditions:
- The company incurring its first capital expenditure within 1 year from the date of the approval of the incentive
- The company meeting the investment in fixed asset within 3 years from the first date of the capital expenditure incurred
- Conditions:
- Tax Incentives for Companies Relocating Their Operations to Malaysia and Undertaking New Investments (For selected services sector, applications received by the Malaysian Investment and Development Authority from 7 November 2020 until 31 December 2022)
- New Company - Income tax rate of 0% to 10% for a period up to 10 years
- Existing Company with new services segment – Income tax rate of 10% for a period up to 10 years
- The scope of tax incentives be expanded to companies in selected services sector including companies adapting Industrial Revolution 4.0 and digitalisation technology with investment that contribute to significant multiplier effect in the following services:
- Provision of technology solution, or more typically technology company which develops technology and provides technology solutions based on substantial scientific or engineering challenges
- Provision of infrastructure and technology for cloud computing
- Research development / design and development activities
- Medical devices testing laboratory and clinical trials
- Any services or manufacturing related services as determined by the Minister of Finance
- The scope of tax incentives be expanded to companies in selected services sector including companies adapting Industrial Revolution 4.0 and digitalisation technology with investment that contribute to significant multiplier effect in the following services:
- Special Income Tax Rate Treatment for Non-Resident Individuals Holding Key Positions in Companies Investing in New Strategic Investments (Applications received by the Malaysian Investment and Development Authority from 7 November 2020 until 31 December 2021)
- Flat rate 15%:
- Malaysian citizens who are categorised as experts and approved under the Returning Expert Program and return to work in Malaysia
- Individual knowledge workers in Iskandar Malaysia
- Individual knowledge workers in Malaysia-China Kuantan Industrial Park
- Individual holding key positions / C-Suite positions for a period of 5 consecutive years
- Receiving a monthly salary of less than RM25,000
- Malaysian tax resident for each year of assessment
- Flat rate 15%:
