Updates on Employers’ Tax Obligations in Malaysia
Introduction
Employers should always keep abreast of the changes in tax law and latest announcements made by the Inland Revenue Board of Malaysia (IRBM). This article provides updates on the tax law subsequent to the article entitled “Tax Awareness for Employers in Malaysia” which was published in our Tax Chat Vol. 1/2020 January.
Changes to the tax law and updates during the Covid-19 pandemic
The following changes have been made to the tax law with effect from 1 January 2021 in relation to the deadline for submission of the prescribed forms to the IRBM under Section 83 of the Income Tax Act, 1967 (ITA):
Section 83(2)
Notification of new commencement of employment of an employee
New deadline: Within thirty (30) days from the date of commencement of an employment
Section 83(3)
Notification of cessation of an employment (includes cessation by reason of death) for private sector/ public sector
New deadline: Not less than thirty (30) days before the cessation date; or not more than thirty (30) days after being informed of the death.
Section 83(4)Notification of an employee leaving Malaysia
New deadline: Not less than thirty (30) days before the expected date of departure from Malaysia
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