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GPMYS: Global Payroll Malaysia Legislative Changes for Tax Year 2021-2022 (Doc ID 2751340.1)

Last updated on SEPTEMBER 21, 2022

Applies to:

PeopleSoft Enterprise HCM Global Payroll Malaysia - Version 9.2 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 2021-2022 This solution applies to customers on PeopleSoft Release 9.2. This is a living document and will be updated as new solutions are created; please review thoroughly on a regular basis.

Please see table below for details.

 
Legislative Change Effective Date Additional Info P1 Patch Fix Target Date Targeted into PUM Image/Patchset
2021 NEW VERSION CP21, CP22, CP22A FORM 1st Jan 2021

There are new version Form CP21, CP22, CP22A (version Amendment 1/2021) released by IRMB.

Note: Effective 01 Jan 2021, Form CP22 is generated using Business Intelligence Publisher (BIP) instead of SQR. The existing SQR process gpmytx02.sqr would be just available for a year to generate From CP22 prior to Jan 2021. The SQR process will be de-supported from 01 Jan 2022.
Form CP22 in BIP format is delivered with assumption that end user environment does support the BIP Reporting Template.
Oracle BIP is an enterprise reporting solution that streamlines report and form generation.
BI Publisher enables you to design and create report layout templates with the more common desktop applications of Microsoft Word and Adobe Acrobat, and renders XML data based on those templates.
This approach to reporting can dramatically reduce report maintenance, enabling power business users to adjust report templates easily.
<Bug 32487766>

PRP is posted.

Click here to download PRP

PUM Image 39

BUDGET CHANGES FOR FY2022 1st Jan 2022

The Ministry of Finance, Malaysia on 29th October 2021 tabled the budget for Financial Year 2022. Key highlights are.

 

1. Expansion of Tax Relief on SOCSO Contributions:

Tax relief for SOCSO contributions is increased to RM350 and expanded to include employee’s contributions through the Employment Insurance System. Currently, employees in the private sector are eligible to claim tax relief up to RM250 on their contributions to the social security protection scheme regulated by SOCSO.

 

2. Tax Relief on expenses for EV Charging Facilities

The Government has introduced new Income Tax relief of up to RM 2,500 will be given on expenses incurred towards cost of installation, rental, purchasing (including hire purchase of equipment) or subscription fees for EV charging facilities.

<Bug 33552083>

PRP: Click here to download PRP

PRP Posted

PUM Image 41

Income tax Rates for 2022 1st Jan 2022

There is no legislative update from the Government of Malaysia regarding the income tax slabs for tax year 2022. So, the tax has to be calculated based on 2021 rates only.

In PeopleSoft, we need to add a new record in the bracket “TAX BR SCALE” and append the income tax rates for 2022 which are same as the rates of 2021 in order to calculate the monthly income tax for 2022.

 <Bug 33672595>

Click here to get the paper POC

Click here to download the PRP

PRP posted.

PUM Image 42

EA 2021 NEW FORM FORMAT Jan 2022

New template C.P.8A [Pin.1/2021] is released, the updated Form C.P.8A;

• Requires employers to report Approved donations / gifts / contributions via salary deduction. Approved donations / gifts / contributions via salary deduction shall include cash and in-kind contributions to combat the COVID-19 pandemic. [Reference: Public Ruling No. 5/2021 - Taxation of a Resident Individual Part I - Gifts or Contributions and Allowable Deductions] - the change has been proposed in March 2020

• Corrections in the template formatting & Capitalization of sentences - the change of template has been proposed in Jan 2022

 

<Bug 33776218>

PRP Posted, Click here to download

PUM Image 42

Form E - reporting changes  

Form E is a declaration report to inform the IRB on the number of employees and the list of employee's income details. Effective from Year of Assessment 2014, all dormant companies with or employees, are mandatory to submit the Form E to IRB. IRB may refer to Form E on an employee's tax information. Effective Year of Assessment 2009, according to Section 83(1A), every employer shall for each year prepare and render to his employee a statement of remuneration before the last day of February. This employee's statement of remuneration is also widely known as EA Form which shows the details of all employment income paid to each individual employee, including the amount contributed to approved pension funds and tax deducted.

 

Major information employers must provide in a Form E

1. Employer's details.

2. Employees' details, for any employees with annual gross remuneration of RM 34,000 and above; or for any employee with monthly gross remuneration of RM 2,800 and above (including bonuses, but does not include the salary arrears of previous years). If the employer do not has any employees under the stated range of annual income or monthly income, the A portion of employee data can be filed with a "0" on it.

 <Bug 34024176>

Click here to download PRP

PRP posted.

PUM Image 43

EIS- CONTRIBUTION RATE CHANGE 2022 Sep 2022 SOCSO will enforce the new salary ceiling for contribution purposes from 1
September 2022.  This move has an impact on Employment Insurance System
Contribution Rate from 1 September 2022 RM4,000 and above.
 
Transition period for employers to comply with the new contribution rates is
for six (6) months starting from September 1, 2022 to 28 February 2023
Will the employer be subject to a penalty (FCLB) in the period transition? –
NO.
 
For More details, please refer
https://www.perkeso.gov.my/kadar-caruman.html

<Bug 34560025>

Click here to download PRP

PUM Image 44

SOCSO - NEW SALARY CEILING FOR CONTRIBUTIONS FROM RM4,000 TO RM5,000 Sep 2022 SOCSO will enforce the new salary ceiling for contribution purposes from 1
September 2022.  This move has an impact on overpaid workers SOCSO will
enforce the new salary ceiling for contribution purposes from 1 September
2022 RM4,000 and above.

<Bug 34555662>

Click here to download PRP

PUM Image 44

Actions

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

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