E-Newsletter March 2018
We hope you have a prosperous Chinese New Year!
As the fourth largest economy in Southeast Asia, Malaysian economy continues to grow steadily as we usher in the New Year. For one, Malaysia’s economy has beat market expectations in 2017, with its first three quarters growing at 5.6 to 6.2 percent year-on-year. For another, Malaysia’s higher oil prices and stronger trade performance have helped to lift the currency after a prolonged period of decline.
Reminder for Income Tax (Form E) Submission
As we usher in the New Year, it is time for us to prepare for the tax season. In Malaysia, the tax year runs in accordance with the calendar year (beginning on 1 January and ending on 31 December) and all tax returns must be filed before 30 April of the following year.
For employer, we would like to remind you that now are the time to start preparing the Form E [Return Form of Employer – Remuneration for the Last Calendar Year]! The Malaysian law requires the employer to furnish the EA form (EA for private sector employees; EC for public sector employees) to all his employees. In other words, employer should prepare and render to his employee a statement of remuneration on or before the last day of February of the following calendar year for each employee to complete and submit his or her personal tax return, including new, existing, and resigned employees.
As for Companies (LLP, Trust Bodies and Co-operative Societies), the filing of Form E (Borang E) is a statutory requirement. It has to be submitted latest by 31 March (A grace period till 30 April 2018 to file the Form E online is granted if anyone of the company director or business owner has an e-Filing PIN, which registered to the business entity) even the entity has no employee OR dormant OR has not commenced business during the calendar year 2017. Failure to comply with this mandatory requirement will result in the fine penalty of RM200 (to RM20,000 or to imprisonment for a term not exceeding 6-months, or both).
Reminder for Personal Income Tax Deadline
Another several important deadlines are related to the filing of personal tax.
- BE Form, for individuals whose income is without business source the deadline is 30 April of the following year.
- B Form, for individuals whose income includes business source, the deadline is 30 June of the following year.
- M Form, for a non-resident individual (resident in Malaysia for less than 90 days in the tax year) whose income is without business source, the deadline is 30 April of the following year.
- M Form, for a non-resident individual (resident in Malaysia for less than 90 days in the tax year) whose income includes business source, the deadline is 30 Jun of the following year.
- P Form, for a partnership, the deadline is 30 June of the following year.
Moving forward, we continue our efforts to grow with our continued focus on quality, reliability, durability, value and customer service. We will always continue to exercise ethical business practices, maintain a respect for the individual, as well as run our business with integrity. We thank you for your continued support and patronage!
Read More in our E-Newsletter March 2018.