EA Form Preparation and Form E Filing for YA2019
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Malaysia: It’s time to prepare Form E and EA Form for YA2019.
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 (31/03/2020).
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…”
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.
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.
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 end of February (29/02/2020).
We do provide EA Form preparation and Form E filing service. Please feel free to contact us at +607- 225 4911 should you need more clarifications.
MALAYSIA BUDGET 2020
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Malaysia government has announced Malaysia Budget 2020 on 11th October 2019. Please let us summarize the key points on Trust 2.
SECOND THRUST: INVESTING IN MALAYSIANS - LEVELLING UP HUMAN CAPITAL
Strategy 5 - Enhancing Job Opportunities for Malaysians
First – Graduates @ Work
For the hiring of graduates who have been unemployed for more than 12 months
The graduates who secures work will receive a wage incentive of RM500 per month, for a duration of 2 years, while employers receive a hiring incentive up to RM300 per month for each new hire, for 2 years
Second – Women @ Work
For women who have stopped working for a year or more, and are between 30 to 50 years old
The wage incentive for returning women workers is RM500 per month for 2 years and hiring incentive for employers up to RM300 per month for 2 years
The current income tax exemption for women who return to work after a career break be extended for another 4 years until 2023
Third – Locals @ Work
Incentivising the shift away from low-skilled foreign workers dependency
The wage incentive for Malaysian who are hired to replace foreign workers is at either RM350 or RM550 per month (depending on the sectors) for a duration for 2 years and hiring incentive for employers up to RM250 per month for 2 years
Fourth – Apprentice @ Work
TVET incentive programme, encouraging more youth to enter TVET courses
Additional RM100 per month on existing allowance for trainees on apprenticeships
Individual Tax Relief
Parents who enroll their children in registered nurseries and kingdergartens, individual tax relief for fees paid will be increased from RM1,000 to RM2,000
Strategy 6 – Modernising the Labour Market – Review the Employment Act 1955
First - Increase maternity leave from 60 days to 90 days effective 2021
Second - Extend the eligibility to overtime from those earning less than RM2,000 to those earning less than RM4,000 per month
Third - Improve protection and procedures for handling sexual harassment complaints
Fourth - Introduce new provisions on the prohibition of discrimination on religion, ethnicity and gender
Proposes to increase the minimum wage rate only in major cities to RM1,200 per month effective 2020
Enhancing Social Protection
EPF - Extend coverage to contract workers for services and professionals. As a start, this will be a voluntary scheme for workers in the arts and entertainment industry
SOCSO - Current self-employment social security scheme will be expanded to enable by other self-employed groups across 18 key sectors, such as fishermen, farmers, sole-proprietors and partnerships
i-Suri for Spouse
In 2020, i-Suri programme will be expanded whereby husbands may voluntary elect to contribute 2% from his 11% EPF employee contribution to his wife’s EPF account
* For more information regarding i-Suri, please refer to the previous post
Reference: https://www1.treasury.gov.my/index.php/
EPF i-Suri
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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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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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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 |
