Monday, August 21, 2017 - 13:52:47

Malaysian employers start paying foreign workers' tax

VNA Print

Illustrative image (Source: Human Resources Online)

Kuala Lumpur (VNA)
- Malaysian employers will be responsible for paying the income tax of foreign workers beginning from January 1, said Malaysian Deputy Prime Minister Ahmad Zahid Hamidi.

They would no longer be able to deduct the wages of their foreign workers for the monthly income tax.

The Deputy PM said in a statement that this change in policy aims to increase employers’ responsibility for their workers, thus averting cases of foreign workers running way, changing sectors of work illegally or overstaying and becoming illegal immigrants.

Ahmad Zahid said employers should also abide by the regulations on foreign workers accommodation and minimum wage.

These regulations not only ensure benefits for guest workers but also help better manage labour force and prevent human trafficking.

According to Malaysian Employers Federation, with this change, the country will lose around 5 billion ringgit (1.12 billion USD) per year.-VNA
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