Income Tax (Deduction From Remuneration) Amended

Income Tax (Deduction From Remuneration) (Amendment) (No. 2) Rules 2014
has been gazetted on 31 December 2014.

There are few statutory changes for MTD 2015 related to implementation
(policy) of Monthly Tax Deduction (MTD) 2015 as below:

1. Remuneration Subject To MTD

‘“remuneration” means income in respect of gains or profits from an
employment under subsection 13(1) of the Act.”’.

With this amendment, the Benefit In Kind (BIK) and Value Of Living
Allowances (VOLA) are subjected to MTD. – Mandatory for MTD deduction.

2. Extension Of Time For MTD Payment

Subrule 10(1) and 13 of the principal Rules is amended in by substituting for
the words “10th” the words “15th”.

With this amendment, the due date of PCB payment due date has been
extended from 10th of every following calendar month to 15th of every
following calendar month.

With effect from January, 2015, payment for the January 2015 MTD is due on
15th February 2015. Hence, it is not applicable to the December 2014 MTD
and the payment for the December 2014 MTD is due on 10th January 2015.

3. Allowable deductions and rebates under the Act claim through TP1
form

In determining the amount of Monthly Tax Deduction based on Computerised
Calculation, the employer shall allow the employee to claim allowable
deductions and rebates under the Act not less than twice in the current year.

With this amendment, the employer who determines MTD based on
Computerised Calculation is mandatory to allows the employee to claim
allowable deductions and rebates under the Act by using the TP1 form not less
than twice in the current year.

Please refer to Income Tax (Deduction From Remuneration) (Amendment) (No.
2) Rules 2014 guideline for detail implementation of 2015 MTD.

For more and detail information, please log in to www.hasil.gov.my click (Employer) then click (Monthly Tax Deduction) or Click HERE.

Customer Service Center
Corporate Services Department
Inland Revenue Board of Malaysia

Posted Date: 15 Jan 2015