ACCESS MALAYSIA

WORKING IN MALAYSIA

The most transparent, accurate and reliable contract management company in the market.

AFSS Access Business Services SDN BHD is part of the Access Financial International group (AF). Contractors seeking temporary employment opportunities require a local company, such as AF, that will employ them in Malaysia and sponsor their work permits.

AF offers a full range of services for the contractors including local payroll, contract management, immigration and tax management services. This work is performed by professional and dedicated team who will ensure that the individual’s requirements are fully met and the highest income retention is obtained.

WORKING IN MALAYSIA

The most transparent, accurate and reliable contract management company in the market.

AFSS Access Business Services SDN BHD is part of the Access Financial International group (AF). Contractors seeking temporary employment opportunities require a local company, such as AF, that will employ them in Malaysia and sponsor their work permits.

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AF offers a full range of services for the contractors including local payroll, contract management, immigration and tax management services. This work is performed by professional and dedicated team who will ensure that the individual’s requirements are fully met and the highest income retention is obtained.

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Malaysia has specific rules for Payroll & Taxation, depending upon the consultant’s residence status. We will employ the consultants in our Malaysian company, AFSS Access Business Services SDN, BHD and we will handle all the payroll & tax obligations.

AFSS will assist at the year-end to complete the local tax return and claim such business expenses as may be allowed in Malaysia. For ex-pats on contracting jobs in Malaysia, AFSS will manage their payroll and tax formalities, even arranging the exit clearance before they leave Malaysia.

Tax rates for Residents & Non Residents
A person is a resident in Malaysia for a particular year if they meet the following criteria:
If a person is in Malaysia for a total period of at least 182 days during the year;

Under Part II, Section 7 of the Income Tax Act, 1967, the Malaysian government considers an individual – regardless of their nationality – a tax resident if that individual fulfills one of the following criteria.

The individual has been resident in Malaysia for 182 days of the tax year;

The individual has been a resident in Malaysia for less than 182 days of the tax year, but was a resident in the country for a total of 182 consecutive days linked to days from the year immediately preceding or following that tax year;

The individual has been a resident in Malaysia for at least 90 days of the current tax year and was a resident in Malaysia for at least 90 days in three of the four preceding years; or

The individual will be a resident in Malaysia in the year following and has been a resident in Malaysia in the three years preceding the one being taxed.

Tax rates are as follows.

Taxable Income (MYR)Tax on the lower amount Rate on excess (%)
0 – 5,00000%
5,001 – 20,00001%
20,001 – 35,0001503%
35,001 – 50,0006008%
50,001 – 70,0001,80014%
70,001 – 100,0004,60021%
100,001 – 250,00010,90024%
250,001 – 400,00046,90024.50%
400,001 – 600,00083,65025%
600,001 – 1,000,000133,65026%
1,000,001  – 2,000,000237,65028%
2,000,001 and above517,65030%

 
Resident individuals are subject to tax on income accruing in or derived from Malaysia from day one. Income received in Malaysia from outside Malaysia is exempt from tax.

Effective from January 2020, it is proposed that the tax rate for non-resident individuals earning more than 2 million will also be taxed 30%. Otherwise, non-residents are taxed at a flat rate of 28%.

Employee Provident Fund Scheme (EPF)
Malaysia has a compulsory Employee Provident Fund scheme which provides tax-efficient retirement benefits for members. Employees whose country of domicile is outside Malaysia (i.e. foreign citizens) are exempted from contributing, but they can elect to contribute along with their employer as follows:

Employee11% of remuneration
Employer12% of remuneration
Total23% of remuneration

 
Social Security Organization (SOCSO)
SOCSO operates a social insurance scheme provided by the government of Malaysia to provide aid in financial guarantees and protection to employees and their families in the event of accidents resulting in disablement, death, or affliction with occupational diseases. All private-sector employees (Malaysian nationals) and their employers are required to make contributions as follows:

A company is required to contribute SOCSO for its staff/workers according to the SOCSO Contribution Table & Rates as determined by the Act. The company will pay 1.75% while the staff/workers’ will contribute 0.5% of their wages for the Employment Injury Insurance Scheme and the Invalidity Pension Scheme.

For foreign workers, including expatriates, only employers need to contribute to SOCSO. Employees are not required to contribute. Employers must contribute 1.25% of an employee’s monthly wage to SOCSO every month (subject to the insured wage ceiling of MYR 4,000 per month).

Employment Insurance Scheme (EIS)
The contribution rate for Employment Insurance System (EIS) is 0.2% for the employer and 0.2% for an employee based on the employee’s monthly salary. For foreign workers, including expatriates, EIS is not applicable.

KEY FEATURES

BENEFITS

15 years’ experience

Office in Cyberjaya, Sepang District, Selangor

Malaysian and English speaking staff at your disposal

Expert in Malaysian employment, social security and tax laws

Strict adherence to Malaysian law keeps all the parties free of breaches of compliance

Arrange medical insurance, dependent visas, opening bank accounts and tax clearance

Pay contractors in their home country if needed

Most competitive fees in the market

All inclusive fee and no start-up or early termination fees

Online portal to provide real-time information on compliance status

Only company with a comprehensive online net take home pay calculator