The Malaysia income tax system will have some change next year with the introduction of a new scheduler tax deduction (STD) system by the Inland Revenue Board, IRB (LHDN).
The new move comes with a good intention to avoid the problem of over deduction by the LHDN, but unfortunately this will convert into a more tedious job by both the tax paying employees as well as their employers.
With the new system, both employers and employees will have to file tax exemptions and rebates on a monthly basis instead of yearly (employees make the submission to the employer and the employer in turn submits to LHDN).
Expenditures that can be put forth for income tax exemptions include purchase of books, magazines, computer and peripherals, equipment for disabled, and payments such as education, alimony, medical check up and so on. On the other hand, rebates can be in the form of tith (zakat) and worker permit pass.
Details of the exact mechanism will be published on LHDN’s website once the new ruling comes into practice. Rounds of talk will also be organized by the LHDN officers to groups of employers nationwide, which will be held in stages.
Other posts you may want to read:
- It’s eFiling Month. Time for Income Tax (LHDN) Submission
- LHDN to Track Down Income Tax Evaders
- Paying Your Income Tax With Maybank2u
- TaxSaya Alternative to Income Tax Payers
- 10 Days to LHDN Income Tax Submission
- What Happen to My Income Tax Refund Check?
- Lower Income Tax Rate for Malaysians
- New Income Tax Deduction on July
3 comments ↓
More work for employees, but at least can save some money in the long run
Reply
[...] As mentioned by Zul, (Source: SkorCareer) [...]
Actually, not entirely accurate. Employees don’t really need to do anything other than supply some sort of supporting document, like a photocopy of the receipt, to the employer. It’s the employer who’s going to have a huge implementation headache.
Reply
Leave a Comment