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IRB targets 4,000 businesses by August 2024 for mandatory adoption of E-Invoice by Malaysia LHDN for annual turnover of RM 100 million! By July 2025, E-Invoice will become obligatory for all businesses, irrespective of their sales threshold.

Which Accounting Software Is The Best In Malaysia?

SQL Account is an easy to learn software with a clean, intuitive user-interface. SQL Account automatically commits all accounting double entries for every transaction. These speeds up the bookkeeping process by reducing human-error and ensuring accounting precisions. SQL Account also has a plethora of business reports to help users make the best decisions for their business. Reports ranging from top ten sales agents and products, sales price history, and yearly sales analysis are available in the system. This is in addition with the compulsory reports like Trial Balance, Profit and Loss, Balance sheet, Statement, Aging, SST reports & etc.

Capital Allowance Guides

Capital allowance claim allows businesses to offset tax liabilities by deducting eligible capital expenditures from their taxable income.

Malaysia E-Invoicing - Part 4: Who Must Comply & Who Can Be Exempted?

The Malaysian government has implemented a mandatory e-invoicing system to streamline tax processes and enhance transparency. Businesses with an annual turnover of RM100 million or more are required to implement e-invoicing by August 1, 2024, while all other businesses must comply by July 1, 2025.

Malaysia E-Invoicing - Part 3: Accounting Software API or Manual Submission?

As part of Malaysia's effort to improve the efficiency of its tax administration management, the Government plans to implement e-Invoice in stages to support the growth of the digital economy. This is in line with the Twelfth Malaysia Plan, which focuses on strengthening infrastructure for digital services and digitizing tax administration.

Malaysia E-Invoicing - Part 2: A 72-Hours Grace Period for Adjustments

The Inland Revenue Board of Malaysia (IRBM) is implementing a new e-Invoicing system to streamline and enhance the country's tax administration. The e-Invoicing system will replace paper invoices with digital invoices that are submitted and validated electronically. This will improve the efficiency of tax collection, reduce fraud and errors, and promote transparency in the tax system.

How to Pay 2% Agent Commission Withholding Tax to LHDN

There are 3 branches across Malaysia that handle the 2% Commission Withholding Tax: Kuala Lumpur Branch (For Peninsular Malaysia), Kuching, Sarawak Branch, Kota Kinabalu, Sabah Branch

Calculating 2% Agent Commission Withholding Tax: Inclusive or Exclusive?

It is important to understand that the 2% withholding tax on agent commissions is not applicable to all agents, dealers, or distributors. This tax is only imposed if the total amount received by the recipient from a single company in the preceding year exceeds RM 100,000.

How to check income tax number online?

To simplify the process of obtaining income tax numbers, the Inland Revenue Board of Malaysia (LHDN) offers an official portal. This portal serves as a centralized platform that streamlines tax-related tasks, providing convenience and efficiency to users. By utilizing this portal, businesses can access the necessary information required to fulfill their tax obligations.

Wtihholding Tax for Agents

A 2% Withholding Tax (WHT) will be imposed to agents, dealers and distributors whose commissions surpasses RM100,000 within 1 year.

What is Profit & Loss Statement?

The term “profit and loss” is used in reference to a Financial Statement that gives us a summarised overview of a company’s revenues, expenses, and profit/ loss over a given period of time.

Education

What is CP204 & CP204A?

CP204 is a form for submission of estimated tax payable. Trust bodies, cooperative and Limited Liability Partners (LLP) are required to submit the CP204 form via e-Filing starting from year 2019.

The adjustment form for CP204 is called the CP204A form. This form is used to amend or revise the amount of the estimated tax payable declared in CP204.

How To Pay Withholding Tax?

All payments for royalties and special class of income can be made via: Telegraphic transfer, Interbank Giro, and Electronic Transfer.

What is Real Property Gains Tax (RPGT)?

It is a tax charged on the profit earned from the selling of chargeable assets. Chargeable assets include houses, lands, condominiums and also shares in real property companies.

Capital Allowance

Capital Allowance is used as a subsidy to for the depreciation of fixed assets. Capital allowance is given to reduce the tax payable for the capital.

What is CP58?

CP58 is a statement of monetary and non-monetary incentive payment to an agent, dealer or distributor

What is Withholding Tax?

Withholding tax is an amount that is withheld by the payer on income earned by a payee who is not a resident in Malaysia.

What Is Digital Tax?

A 6% service tax will be implemented for digital services in Malaysia from 1st Jan 2020 onwards. The tax is expected to affect streaming services like Netflix and Spotify, digital advertising services offered by corporations like Google, and also digital game distribution companies such as Steam.

RMCD

What Is Wages Subsidy Programme (WSP)?

The purpose of the wage subsidy programme is to help employers affected economically by Covid-19 to continue operations and avoid the loss of jobs and income streams for all enterprises.

Prihatin

What is Employee Retention Programme (ERP)?

Employee Retention Programme / Program Pengekalan Pekerjaan is an immediate financial assistance worth RM600 monthly for employees who have been instructed to take unpaid leaves due to the Covid-19 pandemic.

Prihatin

What is CP 500?

CP500 is a "Notis Bayaran Ansuran" which means "Prepayment of Income Tax by Installment". Form CP500 is a tax installment scheme for a taxpayer that has income other than employment income such as business income, rental income and royalties. issued by IRBM.

7 Factors to Consider When Buying an Accounting Software

Transfer Pricing

As of 2020, the government has imposed penalties for companies who are non-compliant with transfer pricing regulations. Prior this, such penalties did not exist. The IRB (Inland Revenue Board) has also shown more and more interest on the grey areas surrounding Transfer pricing.

4 Type of Business Incorporations in Malaysia

Are you thinking of starting a business in Malaysia? Did you know there are more than 1 type of business incorporation in Malaysia? In Malaysia there are 8 different types of businesses. They are Sole Proprietor, Partnership, Limited Liability Partnership, and Private Limited Company, Unlimited Company, Public Limited Company, Company Limited by Guarantee (CLG) and Foreign Company. In this article, we will be discussing the top four popular type of businesses in the list, tax rate, and more.

Which Payroll Software Is The Best In Malaysia?

Payroll Related

SQL Payroll is a the most popular Malaysia Payroll software that removes the complexities in Human Resources Management, fast, easy, and accurate. SQL Payroll automatically calculates ALL statutory contributions, by few simple click you can submit online to KWSP, PERKESO, LDHN portal.

SQL Professional Income Tax Calculator

A tool that can calculate personal income tax in Malaysia. Enter income and tax relief details, the tax amount, tax bracket and tax rate will be calculated automatically.

Steps to Submit & Pay Personal Income Tax

Learn how to submit your personal income tax in Malaysia. Get step-by-step guidance from register tax account, submitting income tax online, and making tax payments online. Employees will receive EA form latest by end of February every year, and tax submissions are required to be done by before end of April every year. Don't miss out on tax rebates and relief - follow our comprehensive guide now!

Are you first time to submit your income tax and don't have a income tax account yet? Follow our step-by-step guidance to register for your income tax account. Don't wait until the last minute as LHDN officer verification may take up to 5 working days. Don't delay any longer and risk of late submission, register your tax account today!

Salary Calculation Malaysia

Education

Calculating salaries can be a daunting task, especially for those who are new to the workforce or for employers who are new in Malaysia. However, it is crucial to ensure that salaries are calculated correctly, compliant with Malaysia's labor laws and government requirements such as the KWSP, PERKESO, LHDN, and HRDF.

This article will provide a guideline on how to calculate salaries per day in Malaysia, along with tips to ensure compliance with relevant laws and regulations.

Steps to Submit Borang E / CP8D

As an employer in Malaysia, you are required to submit your company CP8D via LHDN MyTax Portal before 31st March every year. In this guide, we'll take you through the steps on how to submit your Borang E / CP8D online.

Maximum Working Hours - Employment Act

Before 1 Jan 2023, the maximum working hours per week for non-shift and shift employees is 48 hours. From 1 Jan 2023 onwards, maximum working hours per week will be reduced to 45 hours, for all employees under the scope of EA 1955, irrespective of whether they are non-shift employees or shift employees. Apart from that, the other existing provisions in the EA 1955 that governs working hours and shift work remain unchanged.

SOCSO & EIS Combine Submission

Starting from July 2022, employers can now combine to submit SOCSO and EIS contributions simultaneously in the PERKESO portal under "Combine Contribution". Employers can make submission by manual enter data or uploading a contribution text file.

EIS

SOCSO

Employment Act Amendments 2022

Human Resources Minister has announced that the amendments on the Employment Act effective from 1st Sept 2022 has been postponed to 1st Jan 2023. There are several big changes in the new Malaysian employment act that will affect company operations and workforce planning.

The major change is that the maximum work hours in Malaysia have been reduced from 48 to 45 hours. HR managers and employers may need to make changes to their operations in order to comply with Malaysian employment law.

Budget 2022: Statutory Contribution & New Tax Initiatives

Payroll Malaysia 2022 changes and updates

What is CP39?

CP39 is a statement of monthly tax deduction (PCB) need to submit to LHDN Malaysia every month by every employer, effective 01 Sept 2019 IRB Malaysia no longer accept a manual CP39 Form, employer is required to submit thru e-PCB, e-Data-PCB or e-CP39.

What is CP38?

CP38 is an additional tax deduction issued by LHDN. CP38 requires the employer to make additional deductions in the form of monthly instalments from their employees’ salaries.

Form TP1, TP2 & TP3 Malaysia

LHDN has created 3 types of TP forms, It is the employer’s responsibility to ensure that their employees receive TP1, TP2 forms, TP3 is the employees responsible to notify the current employer on previous employment incomes upon joining the company. All 3 TP forms were made to ensure employee's monthly PCB calculations are precise.

What is Borang E / Form E ?

Form E is a declaration report submitted by every employer to inform the IRB on the number of employees and the list of employee's income details every year not later than 31st March.

What is Employment Insurance System (EIS)?

EIS is a financial scheme aimed at helping employees who have lost their job, and it is managed by SOCSO. This scheme is meant to enable retrenched workers to gain monetary funds that would help them get back on their feet for up to six months.

EIS

What is PCB Malaysia?

PCB/MTD is an income tax deduction mechanism from an employee’s current monthly remuneration in accordance with the schedule of Monthly Tax Deductions (PCB) or other methods approved by the Malaysian government. SQL Payroll is built to accurately and efficiently process these contributions. Use SQL Payroll to experience the best software ever.

What is SOCSO (PERKESO)?

SOCSO provides assistance both medically & financially to employees that have had their abilities reduced or incapacitated due to accidents or diseases. They also provide assistance to the dependants of employees if they die through pensions. SQL Payroll software takes away the complexities in processing your employees SOSCO.

SOCSO

What is EPF (KWSP)?

A portion of an employee’s salary and employer’s contribution on behalf of their workers. Every company is required to contribute EPF for their staff/workers and remit the contribution sum to KWSP before the 15th day of the following month. SQL Payroll is compatible with the labour laws and regulations in Malaysia. This makes SQL payroll the best software for all companies in Malaysia.

KWSP

What is Benefits In Kind (BIK)?

BIK are non-cash benefits provided by employers to their employees and are treated as income of the employees

What is HRDF?

The Human Resources Development Fund (HRDF) is a pool of funds that consists of Human Resources Development levies collected from employers of the manufacturing and service sectors as listed in the First Schedule of the Pembangunan Sumber Manusia Berhad Act 2001 (liable registrants) as well as optional registrants. The purpose is to enable employee training and skills upgrading of the Malaysian workforce.

HRDF

What is EA Form / Borang EA?

EA form is a Yearly Remuneration Statement for private employees that includes your salary for the past year. EA form is used for the filing of personal taxes during tax season.

From CP22 VS CP22A