Dear Valued Clients,
Welcome to our E-Newsletter March 2019
We hope this email finds you well!
Our world today is changing faster with greater shifts – with change comes disruption. The world’s economy is on rocky water due to the rising global trade tension and many uncertainties. The World Bank has revised Malaysia’s gross domestic product (GDP) growth forecast for this year from 5.1% to 4.7% while the International Monetary Fund (IMF) has cut Malaysia’s growth rate from 5.0% to 4.6%.
A Quick Look at the Malaysian Economy
Though Malaysia started to feel the pinch of the US-China trade war, the country’s economy is likely to grow in February to April 2019, according to Malaysia’s Department of Statistics. In the recently released “Malaysian Economic Indicators: Leading, Coincident and Lagging Indexes for October 2018” report, the Leading Index (LI) showed an improvement to negative 0.7% in October 2018 from negative 1.7% in September 2018. In fact, Malaysia’s economy has seen steady growth during the final quarter of 2018 due to the resilient export sector. Bank Negara Malaysia predicts that Malaysia’s economy will continue its steady growth mainly due to the growing demand for Malaysian exports.
The Malaysian government has again reassured investors and the people that Malaysia will not enter a recession this year despite weaker economic growth. The Deputy International Trade and Industry Minister, Dr Ong Kian Ming, highlighted that the government would introduce measures to mitigate the effects of an economic slowdown that had been predicted by leading international agencies.
Tax Reminders
1. Income Tax (Form E) Submission
The commencement of 2019 signals that the tax season is right around the corner. We would like to remind employers that now is the time for the preparation of Form E [Return Form of Employer – Remuneration for the Last Calendar Year]. Please also note that the laws of Malaysia mandate the employer to furnish EA form (EA for private sector employees; EC for public sector employees) to all his employees. Hence, the employer must make sure that the statement is ready on or before the last day of February of the following calendar year for each employee so that he or she can complete and submit his or her personal tax return (this include new hires, existing staff, and resigned employees).
For Companies, LLP, Trust Bodies, and Co-operative Societies, it is a statutory requirement to file the Form E (Borang E) by upcoming 31 March (grace period for e-filing: until 30 April 2019) even the organisation has no employee OR dormant OR has not commenced business during the calendar year 2018. Please take note that you will face the fine penalty of RM200 to RM20,000 or face imprisonment for a term not exceeding 6-months, or both, if you fail to comply with this mandatory requirement.
2. Personal Income Tax Deadline
We suggest you pencil in the following tax filing deadlines in your calendar:
- BE Form (for individuals whose income is without business source): the deadline is 30 April 2019.
- B Form (for individuals whose income includes business source): the deadline is 30 June 2019.
- M Form (for a non-resident individual – resident in Malaysia for less than 90 days in the tax year whose income is without business source): the deadline is 30 April 2019.
- M Form (for a non-resident individual – resident in Malaysia for less than 90 days in the tax year whose income includes business source): the deadline is 30 Jun 2019.
- P Form (for a partnership): the deadline is 30 June 2019.
Lastly, we will not have the same challenge and many different bumps along the way. I know that we can continue to grow and deliver with our professional team and your support!
Thank you.
Lawrence Chai
Partner
Read More in our E-Newsletter March 2019.
