A new schedular tax deduction (STD) system will take effect from Jan 1 to overcome the problem of over-deduction.This means employers and employees will have to do more - they now have to file tax exemptions on a monthly basis rather than annually.
Details of the new system, such as the calculation of STD, would be posted on the IRB website when it is gazetted.
The new STD system will require employees to provide to their employers the monthly exemptions, personal relief and rebates they wish to claim as a taxpayer.
The new STD system will require employees to provide to their employers the monthly exemptions, personal relief and rebates they wish to claim as a taxpayer.
Some of the exemptions include life insurance payments, medical expenses for parents, equipment for the disabled, higher education fees, full medical examination, purchase of books, magazines, journals and computer and alimony payments.
The rebates can include zakat payments and levies for visit pass, education pass and worker permit pass.
The rebates can include zakat payments and levies for visit pass, education pass and worker permit pass.
However, the first monthly payment for the January salary would have to be made by Feb 10.
The appropriate forms for employees to submit to their employer will be released as soon as the STD is gazetted.
The completed forms will have to be forwarded to the employer to collate and consolidate before forwarding the information electronically to IRB using Form CP39 declaring all the STD deductions.
The appropriate forms for employees to submit to their employer will be released as soon as the STD is gazetted.
The completed forms will have to be forwarded to the employer to collate and consolidate before forwarding the information electronically to IRB using Form CP39 declaring all the STD deductions.
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