Staff listening to Encik Aliasad Abu Bakar's briefing.
About 70 staff from our Group of companies attended a half-day briefing on the recent changes in the Scheduler Tax Deduction (STD) System and various issues pertaining to Form BE, organised by Group Tax Department at the Head Office in Menara Citibank on 22 July 2009. The briefing was conducted by Encik Aliasad Abu Bakar and Mr Chua Tian Siang from Unit Pembelajaran Cukai, Inland Revenue Board Malaysia (IRBM).
Mr Chua said that the IRBM has taken into account the 2009 Budget proposals and issued a new STD schedule for a more accurate amount of monthly STD. For example, the government had announced exemption on several allowances such as petrol and others, and these allowances are to be taken into account under the STD. Employers can work out a policy where employees will be able to request for further tax relief or other tax exemptions available in their monthly tax deduction according to a specific period set by their employers. The adjustments on tax deductions can be made according to any specific period such as once in every two or three months or as specified by the employer but not necessarily once a year. | For instance, an employee who has purchased a computer will be able to request for the relevant tax relief during the month the item was purchased if his/her employer has worked out a policy where adjustments to the STD can be made on a monthly basis.
To ensure a more accurate monthly STD, employers are encouraged to inform all employees of their responsibilities as follows:
- to submit a prescribed form i.e. Form PCB/TP1 (1/2009) to the employer if the employee wishes to claim deductions and rebates in the relevant month. The deduction and rebate will take effect subject to approval by the employer.
- to submit a prescribed form i.e. Form PCB/TP2 (1/2009) if an employee wishes to include benefits-in-kind (BIK) and value of living accommodation (VOLA) as part of his / her monthly remuneration in ascertaining the STD amount. This is also subject to approval by the employer.
- to keep and retain in safe custody each and every receipt relating to claims of deductions for a period of seven years from the end of that year of assessment under the Act.
- to furnish complete and accurate personal information and update on any changes of his/her personal particulars to the employer.
On Form BE, Encik Aliasad highlighted issues such as types of income that are subject to tax, the available personal relief and rebates. He also reminded on the penalty for failure to submit Form BE or to settle the outstanding tax within the stipulated time. |