Tax Changes in Malaysia: Will they impact your workforce?

    Aug 06, 2018 @ 08:18 AM / by Jeremy Piccoli

    Kuala Lumpur, Malaysia as seen during an AIRINC cost of living survey.

    Malaysian Employee Provident Fund

    Malaysia The Malaysian government had reduced the employee contribution rate to the Employee Provident Fund from 11% to 8% without limitation, a move aimed at stimulating consumer spending.

     The rate reduction was temporary, effective from March 2016 to December 2017, and the mandatory contribution rate has reverted to 11% as of January 1, 2018. In addition, the three income tax bands between MYR 20,000 and MYR 70,000 have each been reduced by 2%. The net effect of these changes is a 3% increase in social security contributions and a small decrease in income tax for all taxpayers.

    How can you stay up-to-date on changes in Global Mobility?


    AIRINC's Data Points: Your Global Mobility News

    Want to learn more? The above excerpt is taken from Data Points, AIRINC's quarterly newsletter. Data Points brings you the latest updates from our Housing, Goods & Services, and Tax departments based on our expert international surveys, which are conducted by our global data collection team on-location.

    This quarter's cost-of-living surveys were conducted primarily in Europe, Asia, and mainland Southeast Asia.

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    Topics: International Tax, Data Points, Insights and Experience, Tax, Malaysia

    Jeremy Piccoli

    Written by Jeremy Piccoli

    Jeremy joined AIRINC in the fall of 2012 and is responsible for managing AIRINC’s International Tax Guide and tax calculator products, as well as consulting with clients. Prior to joining AIRINC, Jeremy spent more than 6 years with PricewaterhouseCoopers’ International Assignment Services practices in Hartford and Boston, providing tax compliance and consulting services to multinational companies and their expatriate population. He received his B.S. with a concentration in Accounting and a Master of Science in Accounting from the University of Connecticut. Jeremy is an Enrolled Agent, a federally licensed tax practitioner who specializes in taxation.