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GPMYS: Global Payroll Malaysia Legislative Changes for Tax Year 2016-2017 (Doc ID 2102899.1)

Last updated on FEBRUARY 06, 2019

Applies to:

PeopleSoft Enterprise HCM Global Payroll Malaysia - Version 9.1 to 9.2 [Release 9]
Information in this document applies to any platform.

Details

 The intent of this document is to describe solutions for problems or questions related to Global Payroll Malaysia Legislative Changes for Tax Year 2016-2017 This solution applies to customers on PeopleSoft Release {9.1 & 9.2}. This is a living document and will be updated as new solutions are created; please review thoroughly on a regular basis.

(Last updated March 3rd 2016) Summary Table - see below for details:

Please see table below for details.

Legislative Change Effective Date Additional Info P1 Patch Fix Target Date Targeted into PUM Image/Patchset
GP MYS - NEW VERSION OF FORM CP21 & CP22A 2016

IRB of Malaysia has released new versions to Form CP21 & CP22A for Year of
Assessment 2016. These forms will be effective for fiscal year ending
December 2015.

Release 9.2: Patch 22215130

Release 9.1: Patch 22215126

 

HCM 9.2.016

GP 9.1 Update 2016-A

 

MALAYSIA - BUDGET CHANGES 2016 2016 The individual income tax rates are restructured whereby maximum rate will
increase from 25% to 28% for income exceeding RM 400, 000 with effect from
year of assessment 2016.

Increases in deduction limit ¿ All the changes are effective 1st January 2016

1. Deduction limit for individual tax payer whose spouse has no income has
been increased from RM3, 000 to RM4, 000.

2. Individual tax payer is eligible for deduction of RM1, 000 for each child
below the age of 18 years it has been proposed to increase the limit to RM2,
000 per child.

3. The existing deduction for child receiving higher education either in
Malaysia or outside amounting to RM6, 000 is increased to RM8, 000.

4. The current relief for an individual tax payer of RM5, 000 for any course
of study recognized by government of Malaysia is increased to RM7, 000.

5. Socso contribution for employees whose salary exceeds RM3, 000 will be
capped at a maximum of RM3, 000. This limit has been increased to RM4, 000.

New tax relief ¿ The new changes will be effective from 1st January 2016

6. Voluntary contribution to Socso by employee will be eligible for deduction
from taxable income upto a maximum of RM 250 per year effective January 2016.

7. An individual is eligible to claim parental care expenses of RM1, 500 for
each of his parents subject to the below conditions

a) Such taxpayer does not claim expenses on medical treatment and care of
parents
b) Parents are the legitimate natural parents and foster parents in
accordance to the respective law subject to a maximum of 2 persons
c) Parents aged 60 years and above
d) Parents reside in Malaysia in the current year of assessment and
e) Parents have an annual income not exceeding RM24, 000 per annum for each
parent.

8. Any arrears pertaining to any previous financial year received by an
employee in the current year has to be taxed at the rates applicable for the
period in which it is received.

9. Effective 1st July 2016, the national minimum wage is increased from RM
900 to RM 1, 000.

Release 9.2: Patch 22321779,22537810 & 22571898

Release 9.1: Patch 22133139, 22475668 & 22571882


HCM 9.2.016

GP 9.1 Update 2016-A

 

EPF RATE CHANGES FOR AY 2016 2016 The EPF rate for AY 2016 has been revised effective March 2016.

The EPF rate has been reduced by 3% (from 11 to 8)

Release 9.2: Patch 22475668

Release 9.1: Patch 22635073

HCM 9.2.017

GP 9.1 Update 2016-B

Form E and CP 8D for Year Assessment 2015 2016 The Inland Revenue Board Malaysia (IRBM) has released the latest version of
form E and Form CP 8D for the Year Assessment 2015. Updated Form E and CP 8D
for Year Assessment 2015
Release 9.2: Patch 22856801

Release 9.1: Patch 22856781

HCM 9.2.018

GP 9.1 Update 2016-C

 

SOCSO NEW EFFECTIVE DATE FROM 1ST JUNE 2016 2016 SOCSO rate changes effective June 2016 Release 9.2: Patch 23550844

Release 9.1: Patch 23550826

HCM 9.2.018

GP 9.1 Update 2016-C

 To stay up with the legislative changes that will impact your PeopleSoft Application visit https://blogs.oracle.com/psftlegupdates/

 

Actions

You need to apply the critical patches / GP Updates whenever their legislative fixes are posted.

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