EPF i-Suri
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- Category: Malaysia News
Housewives can now opt in for the EPF contributions via Malaysia new government incentive under i-Suri since August 2018.
i-Suri is catered specially to ensure the wellbeing of housewives and acknowledge your contribution to your families and the development of the country.
Benefits:
- Receive government contribution of RM200* in 2018,and RM480 per annum in the year 2019
- Contribute according to your own time and within your own financial ability and still be able to make withdrawals subject to established terms & conditions
- Earn annual EPF dividend
- Death Benefit: RM2,500
Requirements:
- Malaysian Citizen
- Below 60 years of age
- Wife of Head of Household (HOH)/ Female HOH
- Housewices who are registered in the National Database on Poverty (eKasih) as of 30 Nov 2018
- Must contribute a minimum of RM5 per month or RM60 per annum into your EPF account
SERVICE TAX GROUP B - FOOD AND BEVERAGES (F&B)
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- Category: Malaysia News
Notes - Food & Beverages (Group B)
- F&B include:
- Any person operating Restaurant, Bar, Snack-Bar, Canteen, Coffee House or Any Place Which Provides F&B whether wholly or partly eat-in or take-away excluding:
- A canteen located in an Educational Institution
- A canteen operated by a Religious Institution or Body
* Including Kiosk, Counter, Sales Booths and Pasar Tani or Night Market
- Any person providing Catering Services
- Any person operating a Food Court including any eating place which is centrally managed with a common cashier system and where two or more person provides food and drinks
- Any person operating Restaurant, Bar, Snack-Bar, Canteen, Coffee House or Any Place Which Provides F&B whether wholly or partly eat-in or take-away excluding:
- Taxable services also include provision of Other Services Other Than Rental of the space within the food and beverages establishment (FBE) and Sale of Beverages including Bottled, Pack or Canned Drinks and Alcoholic Drinks (except Mineral Water or Drinking Water)
* Charged Parking, Rental of Facilities, Services of Entertainment such as Karaoke, Playground and Others, Cooks Services and Services of Corkage and Towel provided by the F&B operator are also subject to Service Tax
* Sales of Non-Food Merchandise such as stationery, newspaper is NOT subject to Service Tax
* Sales of Tit-Bits and Snacks such as sweets, ice cream is NOT subject to Service Tax - Service Charge and Tips are NOT subject to Service Tax
- Q: I am a restaurant owner who received a customer request to organize a birthday celebration. However, the F&B was outsourced to a caterer. What is the treatment for this situation?
A: F&B by the caterer which was charged to restaurant owner is subject to Service Tax of 6%. Birthday celebration that is charged as a package by the restaurant owner is subject to Service Tax with the value of F&B included. - Deposit received should be accounted for Service Tax not later than the last day of the month following the end of each taxable period
- F&B sold in passenger transport via land and sea mode are NOT subject to Service Tax as they are not provided by F&B operators in the restaurant category. However, food sales for air passenger transport are subject to Service Tax under the air passenger transport service category
- Food and beverages purchased and consumed on self-service basis at convenience stores are NOT subject to Service Tax. However, if the convenience store provides area to dine in such as tables and chairs, the food prepared or served by the staff are subject to Service Tax, including sales of tobacco products, alcoholic and non-alcoholic beverages
- The service of preparing and selling food and beverages through online is NOT subject to Service Tax
- The preparation or sale of food or beverages provided by the franchisee shall be in accordance with the terms set out by the franchisor as specified in the franchise agreement
For more information, kindly refer to https://mysst.customs.gov.my/ or our company Facebook https://www.facebook.com/ycsmanagement/
We do provide SST Registration Serice, Accounting Service and SST Reporting Service. Kindly refer to https://www.ycsaccounting.com.sg/our-services/malaysia/accounting for details. Please feel free to contact us at +607 – 225 4911 should you need more clarifications. Or you can just click HERE to contact us.
SALES AND SERVICE TAX (SST) GENERAL GUIDES
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- Category: Malaysia News
Sales and Service Tax (SST)
As announced by the Government, Sales and Service Tax (SST) has been implemented on 1st September 2018. To ensure a smooth implementation of SST, businesses are encouraged to submit their application for early registration.
The below table summarized the General Guides for Sales and Service Tax.
For more information, you may refer to https://mysst.customs.gov.my/.
We do provide SST Registration Serice, Accounting Service and SST Reporting Service. Kindly refer to https://www.ycsaccounting.com.sg/our-services/malaysia/accounting for details. Please feel free to contact us at +607 – 225 4911 should you need more clarifications. Or you can just click HERE to contact us.
Sales Tax | Service Tax |
Taxable: Manufactured in or Imported into Malaysia * Manufacture: · Changing the size, shape, composition, properties or quality of the material · Installation of tools and components into machines or equipment · Changing the quality of finished goods · In relation to petroleum, any process of separation, purification, conversion, refining and blending | Taxable Service Including: · Accommodation · Advertising Services · Betting and Gaming · Broking and Underwriting Services · Clubs · Courier Services · Customs Agents Services · Domestic Flight · Electricity · Food & Beverages · Hire Passenger Vehicles Services · Information Technology Services · Motor Vehicle Services or Repair Centre · Paid Television Broadcasting Services · Parking Services · Professional Services · Telecommunication Services |
Threshold: RM500,000.00 Rate: 5% or 10% Submission Cycle: Bi-monthly * To submit not later than the last day of the following month after the taxable period ended regardless there is any tax to be paid or not | Threshold: RM500,000.00 *except Restaurant RM1,500,000.00 and Credit Card or Charge Card and Custom Agent no threshold Rate: 6%, A specific rate of tax of RM 25 is imposed upon issuance of principal or supplementary card and every subsequent year or part thereof Submission Cycle: Bi-monthly * To submit not later than the last day of the following month after the taxable period ended regardless there is any tax to be paid or not |
Penalty: 10% - first 30 days period | Penalty: 10% - first 30 days period |
| Account on Accrual Basis | Account on Payment Basis Contra system: Can deduct service tax for any cancellation and termination of services or any other reasons such as reducing premiums or discounts |
The recovery of cost or a payment made by registered person on behalf of another party is termed as a “disbursement” and is NOT subject to Service Tax A reimbursement is subject to Service Tax | |
The invoice must contain prescribed particulars: i. The invoice serial number; ii. The date of the invoice; iii. The name, address and identification number of the registered manufacturer; iv. The name and address of the person to whom the taxable goods is sold v. Quantity and description of the goods; vi. Any discount offered; vii. For each description, distinguish the type of goods, quantity and amount payable excluding tax; viii. The total amount payable excluding tax, the rate of tax and the total tax chargeable to be shown as a separate amount or a total amount payable inclusive of total of tax chargeable; and ix. Any amount expressed in a currency other than Ringgit shall also be expressed in Ringgit at the selling rate of exchange prevailing in Malaysia at the time of manufacturing | The invoice must contain prescribed particulars: i. The invoice serial number; ii. The date of the invoice; iii. The name, address and identification number of the registered person; iv. A description sufficient to identify the taxable services are provided; v. Any discount offered; vi. The total amount payable excluding service tax, the rate of service tax and the total service tax chargeable shown as a separate amount; vii. The total amount payable inclusive of total chargeable; viii. Any amount referred to in a currency other than the ringgit shall also be expressed in ringgit at the selling rate of exchange prevailing in Malaysia at the time of the taxable service is provided; and ix. It must be in the national language or English |
Branch Registration: Not Allowed Group Registration: Not Allowed | Branch Registration: Allowed Group Registration: Not Allowed |
Can adjust Sales Tax return by applying to the Director General | Can adjust Service Tax return by applying to the Director General |
Keep soft or hard copy records in BM or English for 7 years | Keep soft or hard copy records in BM or English for 7 years |
Can claim bad debts: a. Within 6 years from the date the taxable goods is sold; b. Subject to conditions determined by the Director General; c. According to a prescribed formula: Payment Received * Tax Payable | Can claim bad debts: a. Within 6 years from the date the taxable goods is sold; b. Subject to conditions determined by the Director General; c. According to a prescribed formula: Payment Received * Tax Payable |
Can claim overpaid or erroneously paid amount within ONE year Can drawback of sales tax paid in respect of goods which are subsequently exported except petroleum within 6 months from purchase and 3 months from export except petroleum | Can claim overpaid or erroneously paid amount within ONE year |
EMPLOYER OBLIGATIONS
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- Category: Malaysia News
Employee Provident Fund (EPF)
According to Section 41 (1) of the EPF Act 1991, an employer must register with the EPF within seven (7) days from the date the employer becomes liable to contribute, that is as soon as an employee is hired
- An employer is defined as a person with whom an employee has a contract of service or apprenticeship with
- An employee is defined as a person who is employed under a contract of service or apprenticeship. The contract of service or apprenticeship can be written or oral, expressed or implied
Minimum age: Employment age is subject to Children and Young Persons (Employment) Act 1966.
Maximum Age: 75 years
Contribution for any given month must be paid on or before the 15th of the month
Contribution rate shall be 11% from employee and 12% / 13% from employer
* Malaysian below 60 years old)
Payment Liable for EPF Contribution
In general, all payments which are meant to be wages are accountable in your monthly contribution amount calculation. These include:
- Salary
- Payment for unutilised 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
Source: http://www.kwsp.gov.my
Social Security Organisation (SOCSO)
Employer and its employees must be registered with SOCSO not later than 30 days on which the Act becomes applicable to the industry
Employers are required to pay monthly contributions for each eligible employee according to the rate specified under the Employees’ Social Security Act, 1969. These contributions are divided into two (2) types, namely:
Contributions of the First Category
- For employees who are less than 60 years of age, contributions payable by employers and employees are for the Employment Injury Scheme and the Invalidity Scheme.
- The rate of contribution under this category comprises 1.75% of employer’s share and 0.5% of employees’ monthly wages according to the contribution schedule.
Note: All employees who have not reached the age of 60, must contribute under the First Category except for those who have attained 55 years of age and have no prior contributions before they reach 55 due to non-eligibility under the Employees’ Social Security Act, 1969.
Contributions of the Second Category
- The rate of contribution under this category is 1.25% of employees’ monthly wages, payable by the employer, based on the contribution schedule. All employees who have reached the age of 60 must be covered under this category for the Employment Injury Scheme only.
Note: For eligible new employees who are 55 years of age, they must be covered under the Second Category.
* Contribution rates are capped at an assumed monthly salary of RM4,000.00
Contribution for any given month must be paid on or before the 15th following of the salary month
Wages subject to SOCSO contribution:
All remuneration or wages stated below and payable to staff/ workers are subject to SOCSO contributions:
- Salary/ Wages (Full/ Part time, Monthly/ Hourly)
- Overtime payments
- Commission
- Paid leave (Annual, sick and maternity leave, rest day, public holidays)
- Allowances
- Service charge
Wages NOT subject to SOCSO contribution:
The following wages or remuneration payable to staff/ workers are NOT subject to SOCSO contributions:
- Payments by employer to any pension or provident fund for employees
- Mileage claims
- Gratuity payment(s) for dismissal or retrenchments
- Annual bonus
Source: http://www.perkeso,gov,my
Employment Insurance Scheme (EIS)
Employer and its employees must be registered with SOCSO not later than 30 days on which the Act becomes applicable to the industry
All employers in the private sector are required to pay monthly contributions on behalf of each employee. (Government employees, domestic workers and the self-employed are exempt)
An employee is defined as a person who is employed for wages under a contract of service or apprenticeship with an employer. The contract of service or apprenticeship may be expressed or implied and may be oral or in writing.
All employees aged 18 to 60 are required to contribute. However, employees aged 57 and above who have no prior contributions before the age of 57 are exempt.
* Contribution rates are capped at an assumed monthly salary of RM4,000.00
Contribution for any given month must be paid on or before the 15th following of the salary month
Contribution rate shall be 0.2% from both employee and employer
Wages subject to EIS contribution:
All remuneration or wages stated below and payable to staff/ workers are subject to EIS contributions:
- Salary/ Wages (Full/ Part time, Monthly/ Hourly)
- Overtime payments
Wages NOT subject to EIS contribution:
The following wages or remuneration payable to staff/ workers are NOT subject to EIS contributions:
- Payments by employer to any pension or provident fund for employees
- Mileage claims
- Gratuity payment(s) for dismissal or retrenchments
- Annual bonus
Source: http://www.perkeso.gov.my/sip/
Potongan Cukai Bulanan (PCB)
Also known as Monthly Tax Deduction (MTD) which is a system of tax recovery where employers make deductions from their employees’ remuneration every month in accordance with the MTD Schedule. This is mandatory.
Employer can register and calculate at any time before payment of salaries to employees and pay to LHDN within 15 days of the following month
Employer's responsibilities under the MTD Rules are as follows:
- Deduct the MTD from the remuneration of employee in each month or the relevant month in accordance with the Schedule of Monthly Tax Deductions or Computerised Calculation Method and pay to the Director General.
- Make additional deductions from employee's remuneration in accordance with the direction given by the Director General under Rule 4 of MTD Rules.
- Employer shall pay to the Director General, not later than the fifteen day of every calendar month, the total amount of tax deducted or should have been deducted by him from the remuneration of employees during the preceding calendar month.
- Furnish a complete and accurate employees' information of the following in a return when submitting MTD payments/additional deductions:
(i) income tax number (if any);
(ii) name as stated on identity card or passport;
(iii) new and old identity card number/police number/army number or passport number (for foreign employee); and
(iv) MTD/additional deductions amount.
Source: http://www.hasil.gov.my/
HRDF – First Schedule of PSMB Act, 2001
Section 13(1) of the PSMB Act 2001 stipulates that every employer who is covered under the Act is required to register with PSMB within such time and manner as may be prescribed.
Employers with 10 and more local employees across all sectors under the PSMB Act 2001 must register with PSMB.
Any employer who is convicted for not registering with PSMB may be fined up to an amount not exceeding RM10,000 or face imprisonment up to a year, or both (Section 13(2)).
According to the First Schedule of PSMB Act, 2001, definitions of industries covered are as follows:
Sector | Activity/ Sub-Sector | Class of Employers Covered | Imposition of Levy |
Manufacturing Sector (23 sub-sectors) | Manufacturing, that is, the making or processing of an article by labour or machine or both, including the transformation of parts or components into another article of a different nature or character by way of altering, blending, ornamenting, finishing or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal, including the building of a ship or the assembly of parts of a ship. | ≥10 Malaysian employees | 1% |
5-9 Malaysian employees (given option to register) | 0.5% | ||
Service Sector (38 sub-sectors) | Hotel, Air transport, Tourism enterprise, Telecommunication, Freight forwarding, Shipping, Postal or courier, Advertising, Computer services, Energy, Training, Higher education, Direct selling, Port services, Engineering support & maintenance services, Research & development, Warehousing services, Security services, Private hospital services, Gas, steam and air-conditioning supply, Water treatment & supply, Sewerage, Waste management & material recovery services, Production of motion picture, video and television programme, sound recording and music publishing, Information service, Event management services, Early childhood education, Health support services, Franchise, Sale and repair of motor vehicles, Private broadcasting services, Driving school, Veterinary services, Hypermarket, supermarket and departmental store services, Food and beverage services. | ≥10 Malaysian employees | 1% |
5-9 Malaysian employees (given option to register) | 0.5% |
HRDF – First Schedule of PSMB Act, 2001
Sector | Activity/ Sub-Sector | Class of Employers Covered | Imposition of Levy |
Mining and Quarrying Sector (2 sub-sectors) | Mining and quarrying, that is, any business or activity involving the process of extracting minerals occurring naturally as solid, liquid or gas which includes- (A) Mining of hard coal and lignite (brown coal), iron ores, nonferrous metal ores, or chemical and fertilizer minerals; (B) Mining or quarrying of abrasive materials, asbestos, siliceous fossil meals, natural graphite, steatite (talc), gemstones, natural asphalt, asphaltites and asphaltic rock, natural solid bitumen, quartz and mica; (C) Extraction of crude petroleum oils, bituminous or oil shale and tar sand, natural gas, condensates, liquid hydrocarbon, methane, ethane, butane or propane; (D) Extraction and agglomeration of peat soil and salt, including extraction of salt by evaporation of sea water or other saline water; (E) Quarrying of stone, sand and clay; or (F) Mining or quarrying specialized support services provided on fee or contract basis. | ≥10 Malaysian employees | 1% |
5-9 Malaysian employees (given option to register) | 0.5% |
Source:
http://www.hrdf.com.my/wps/portal/PSMB/MainEN/Corporate-Profile/PSMB-Act/
What is Form E?
Form E (Borang E) is required to be submitted by every employer (company/enterprise/partnership) to LHDN (Inland Revenue Board, IRB) every year not later than 31 March.
Who Needs to File Form E?
All companies. LHDN: “Every employer shall, for each year, furnish to the Director General a return in the prescribed form…”
Due Date for Submission of Form E
- Subsection 83(1) of ITA 1967 stipulates that the form must be furnished by every employer before or on 31 March. Form E will only be considered complete if C.P. 8D is furnished before or on the due date for submission of the form.
Grace Period for Submission of Form E for The Year of Remuneration
Form | Method of Submission | Grace Period |
e-E | e-Filing * | Until 30 April |
E | Via postal delivery | 3 working days |
By hand-delivery | None |
* Employers which are companies are compulsorily required to furnish Form E via e-Filing (Form e-E) with effect from the Year of Remuneration 2016.
- Form E furnished via e-Filing / postal delivery after the due date for its submission shall be deemed to be received within the stipulated period if it is received before or on 30 April (e-Filing) / within 3 working days (postal delivery).
- Failure to furnish within the allowable period will result in the imposition of compound under paragraph 120(1)(b) of the Income Tax Act 1967 (ITA 1967) based on the due date for submission of the form.
Form C.P. 8A / C.P. 8C (EA / EC) to be Rendered to Employees
- Pursuant to the provision under subsection 83(1A) of ITA 1967, employers are required to prepare Form C.P. 8A / C.P. 8C (EA / EC) for the year ended and render the completed form to all their employees before or on 28 February.
FORM E will only be Considered complete if C.P.8D is Furnished
C.P. 8D Format – Method of Submission by Employers for The Year of Remuneration
Employers are required to furnish C.P. 8D format to LHDNM via any of the methods stated below:
No. | Employer |
Approved Method of C.P. 8D Submission
| |
C.P. 8D – Pin. 2016 (Current Version) | C.P. 8D – Pin. 2015 (Old Version) | ||
i. | Companies (Including Labuan Companies) | a) Together with Form e-E (e-Filing) b) Via e-Data Praisi c) Compact Disc | a) Together with Form e-E (e-Filing) b) Compact Disc |
ii. | Non-Companies | a) Together with Form e-E (e-Filing) b) Together with Paper Form E c) Via e-Data Praisi d) Compact Disc | |
Note: | Employers who have submitted information via e-Data Praisi need not complete and furnish Form C.P. 8D. | ||
DORMANT Companies must file FORM E
Companies which are dormant and/or have not commenced business are required to furnish the Form E with effect from year of assessment 2014.
E-Filing System Opens on 1 March
The e-Filing system for submission of Form E for the year of Remuneration will be opened beginning 1 March.
Penalties up to RM20,000 or 6 Months Imprisonment
Please be advised that it is the employer’s responsibility to complete the form E and return it promptly to the Inland Revenue Board.
Penalties ranging from RM200 to RM20,000 or to imprisonment for a term not exceeding 6 months or both will be imposed if you fail to comply with the stipulated filing date.
Prefill of Remuneration Particulars In e-Filing
To facilitate taxpayers’ use of e-Filing in line with current technological development, LHDNM is further reinforcing its e-Filing system by obtaining remuneration particulars of taxpayers from their employers for prefill in their respective e-Filing forms. Prior to signing and sending the forms electronically, taxpayers using e-Filing may alter the prefilled particulars if there’s a change.
Employers are encouraged to furnish the particulars online using e-Data Praisi which can be accessed via the LHDNM Official Portal before or on 22 February. The format for Information_Layout for Prefill can be obtained from the LHDNM Official Portal. To ensure compliance with the required format, format check can be done via e-Data Praisi. Particulars furnished are acceptable as C.P. 8D particulars for Form E. Employers who have submitted information via e-Data Praisi need not complete and furnish Form C.P. 8D. Enquiries can be e-mailed to This email address is being protected from spambots. You need JavaScript enabled to view it..
Source:
http://lampiran1.hasil.gov.my/pdf/pdfam/ProgramMemfailBNCP_2017_2.pdf
We do provide payroll services. Kindly refer to https://www.ycsaccounting.com.sg/our-services/malaysia/payroll for details information. Please feel free to contact us at +607 – 225 4911 should you need more clarifications. Or you can just click HERE to contact us.
REQUIREMENT UNDER COMPANIES ACT 2016
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- Category: Malaysia News
Under the Companies Act 2016, all companies shall comply the below requirement after incorporation:
1. Publication on Name & Registration Number (Immediately)
For existing and newly incorporated companies, all Business Letters, Statements of Account, Invoices, Official Notices, Official Publications, Websites, Bills of Exchange, Promissory Notes, Endorsements, Cheques, Order Forms, Invoices, Receipts and Letters of Credit or of Purporting is to be issued or signed by or on behalf of, the company, and all other forms of its business correspondences and documentation should have the Company Name (regardless if the business is operating under a business name) and Company Registration Number.
2. Proper Accounting Records & Documents (Immediately)
Keeping proper accounting and other records in hard copy which sufficiently explain the transactions and financial position of the company to present true and fair profit and loss accounts and balance sheets for 7 years.
3. Appointment of First Secretary (Within 30 days from date of incorporation)
Every SDN. BHD. MUST appoint at least one Company Secretary. The licensed secretary appointed by the Board of Directors of a limited company will look after and conduct all legal and procedural matters as required by the Companies Act 2016 and all other applicable laws fall under the duties of a Company Secretary.
4. Decide Financial Year End for Preparation of Financial Statements (Within 18 months from date of incorporation)
For newly incorporated companies, the Directors of the company should decide the company’s financial year end which should be not later than 18 months from the date of incorporation. Financial statements must be prepared.
5. Lodgement of Annual Return (Within 30 days from the anniversary of the incorporation date)
The Lodging of Annual Return for each calendar year should be done not later than 30 days from the anniversary of the incorporation date. The annual return will be prepared by the Company Secretary and signed by the director.
6. Appointment of Auditors (30 days before the company financial year end)
Every SDN. BHD. should appoint an auditor for each financial year for the company
7. Duty to Circulate Copies of Financial Statements (Within 6 months from the financial year end of the private company)
Every company should send a copy of FS for each financial year to
- Every member of the company
- Every person entitled to receive general meeting notices
- Every auditors of the company
- Every debenture holder of the company on request being made, to the last known address provided to the company
8. Duty to Lodge Financial Statements and Reports with the Registrar (Within 30 days from the date of circulation of financial statements and reports)
The financial statements and reports have to be lodged with the SSM within 30 days from the date the financial statements and reports are circulated to its members.
We do provide the professional accounting services and secretarial services to make sure your company is comply with the Companies Act 2016. Kindly refer to the details of our Malaysia services at https://www.ycsaccounting.com.sg/our-services/malaysia. Please feel free to contact us at +607-2254911 should you need any further clarification. Or you can just click HERE to contact us directly.
For more information, you may refer to http://www.ssm.com.my/Pages/Home.aspx
