Tax on foreign workers mandatory in Malaysia from Jan 1

0
11

PV International Desk : The employers in Malaysia will have to pay taxes for their foreign workers from 1st January of 2018.
Malaysian Ministry of Human Resources issued a notice on Thursday (Dec 21) stating that employers must have to pay levy for each worker and also for further registration.
The notice also said that legal action will be taken against the employers for not complying with it. Employers have already agreed and signed on this matter. They will have to pay the levy to government for employing foreign workers.
In Peninsula Malaysia, the tax has been set at Ringgit 1,850 (Tk 37,000) for foreign workers in manufacturing, construction and service sectors. Tax for foreign workers in the plantation and agricultural sector is Ringgit 640 (Tk 12,800) and tax for domestic workers will vary from Ringgit 410 to 590 (Tk 8200 to Tk 11800).
However, the taxes are different in Sabah and Sarawak states. Tax is Ringgit 1,010 (Tk 20,200) for foreign workers in manufacturing, construction and service sectors. Tax for foreign workers in the plantation is Ringgit 590 and Ringgit 410 in agricultural sector. Tax for domestic workers will vary from Ringgit 410 to 590 (Tk 8200 to Tk 11800).
As per the 11th plan, Malaysian government wants to reduce dependency on foreign workers by 15 percent within 2020.

LEAVE A REPLY