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Non-Resident Tax Policy
Author: Susan Lai Reference Number: AA-00861 Views: 1416 Created: 2014-05-06 20:16 Last Updated: 2014-05-06 20:16 0 Rating/ Voters

Scenario:

Non-resident tax policy. Non Resident Employee monthly tax deduction (MTD) who is not resident or not known to be resident in Malaysia shall be calculated at the rate of 26% of his remuneration.

Example of total monthly remuneration as: RM5,000.00

MTD Calculation: RM5,000.00 x 26% = Rm1,300.00

Solution:

i.            Core à Payroll

 

ii.            Setup à Income Tax Setup à Tax Policy Setup

a.                   Click on New 

b.                  Tax Policy ID: NoResidentPolicy

 

c.                   Description: No Resident Contribution


d.                  Click on Progression tab 

e.                  Effective Date: 01-01-2011 

f.                    All leave it blank or 0


g.                   Click on  at Schedular T ax Deductions (STD) Policy


h.                  Key in formula as below: 

From P(RM)      To P(RM)      R%        B (Category 1& 3)        B (category (2)

1                           9999999          0             0                                        0

 


i.                     Click “√” to save 

j.                    Exit from the screen.

 


iii.            For employee setting, go to Payroll à Modules àIncome Tax Income Tax Details

iv.       Tax Policy, drop down menu and select NonResidentPolicy for the non-residence employee.

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