【HR NEWSLETTER – November 2019】

HIGHLIGHTS

BUDGET 2020

  • The government will merge Special Commissioner of Income Tax and Customs Appeal Tribunal into the Tax Appeal Tribunal, to be operational in 2021. Through this, taxpayers unhappy with the decision of IRB director-general or Customs D-G can appeal.
  • The government proposes that a new band for taxable income in excess of RM2 million ve introduced and taxed at 30%, up 2 percentages point from the current 28%. This will affect approximately 2,000 top income earners in the country.
  • The government had repaid GST refunds amounting to Rm15.9b to more than 78,000 companies, and income tax refunds of RM13.6b to 448,000 companies and 184,000 taxpayers.

EMPLOYMENT

  • Hiring fresh graduates: Two-year pay incentives for RM500 a month. Hiring incentive of RM300 a month.
  • Incentives to get women into the workforce:
    • Two-year pay incentives of RM500 a month.
    • Hiring incentive of RM300 a month.
    • Tax exemption for women returning to work will be extended until 2023.
  • The government revises Employment Act, including increasing maternity leave from 60 days to 90 days effective from 2021.
  • The government proposes to raise minimum wage in urban areas to RM1,200 a month in 2020.
  • Government to launch Malaysians @ Work initiative aimed at creating better employment opportunities for youth and women, reducing over-dependence on low-skilled foreign workers.
  • Malaysians who replaced foreign workers will get a monthly wage incentive of RM350/RM500 for 2 years, depending on the sector. Employers will get a monthly incentive of RM250 a month throughout the same period.

For further inquiries kindly visit LHDN website www.hasil.gov.my  or contact Hasil Care Line LHDNM at 1-800-88-5436 or 603-77136666 (Overseas).

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