Thursday 25 December 2008

IRB: New system is not mandatory

KUALA LUMPUR: The new schedular tax deduction system will not be mandatory and will give flexibility to employers.

Inland Revenue Board (IRB) chief executive officer Datuk Hasmah Abdullah said employers could choose to submit their tax exemptions monthly, twice a year or any other number of times per year.

“They can also maintain the status quo of submitting once a year."

“It is not mandatory to have adjustments made monthly,” she told a press conference yesterday.

She said this in relation to The Star’s frontpage report on the IRB’s new STD system that would take effect from Jan 1.

The new system is aimed at overcoming the problem of over-deductions.

She said there is a STD calculator on the IRB website that could help them determine the correct amount to be deducted.

IRB revenue management department director, Mohammad Sait Ahmad, said an e-STD application was also being developed that would assist employers in computing automatically how much they would have to deduct.

Meanwhile, the Malaysian Airlines System Employees Union (Maseu) has called on the IRB to come up with a better solution to solve the problem of tax over-deduction.

It said it should not pass the buck to employees and employers.

Monday 1 December 2008

Forms For EPF Members To Contribute At 11% Available From Today

Members of the Employees Provident Fund (EPF) who wish to maintain the employee’s monthly contribution rate at 11 per cent from January 2009 wage may obtain Form KWSP 17A (AHL) Khas from all EPF branches or download it from myEPF website beginning today. Fully completed forms can be submitted to the members’ respective employers for onward submission to the EPF.

The EPF has also made available Form KWSP 17AA (AHL) Khas to facilitate employers who wish to apply on behalf of more than two employees.

Deputy Prime Minister and Finance Minister YAB Datuk Seri Najib Tun Abdul Razak recently announced the reduction of the employees’ monthly statutory contribution rate from 11 per cent to 8 per cent, effective from January 2009 wage for a period of two years. The measure is taken to help increase members’ disposable income given the current economic climate. The higher disposable income will in turn support domestic consumption and help sustain the momentum of positive economic growth.

In relation to reduction in the statutory contribution rate which will take effect from January 2009 wage to December 2010 wage, a new monthly contributions schedule has been issued. Members and employers may download the new schedule from our website or get the schedule from any of our branches nationwide effective today.

Hurry! save your tax before year ends

In less than a month the year will come to end. If you have not use up your tax reliefs for 2008 you better act now to save your tax. Below is the tax reliefs for individuals (malaysian only), with applicable terms & conditions:-


1. RM1,000 for purchasing books, magazine, journal (except newspaper). If you dont read books then buy them as gift for others.

2. RM3,000 for computer purchase for every 3 years only.

3. RM 300 for purchase of sports and exercise equipment such as all types of racquets and balls, treadmill, exercise bike and airwalker.

4. RM6,000 for both EPF & life insurance.

5. RM3,000 for education & medical insurance.

6. RM5,000 for medical checkup (RM500 max) & medical expenses to treat serious illness/disease for you, your spouse or kids. Both combined, limits to RM5,000.

7. RM5,000 for parents medical expenses includes (treatment, nursing & dental-subject to terms & condition).

8. RM5,000 for personal education (there is a limitation on type of education tho). Go upgrade yourself. Take advantage by paying the fees by 2008.

Act today to maximize your tax savings.

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