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Malaysian employers start paying foreign workers' tax

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.
Malaysian employers start paying foreign workers' tax ảnh 1Illustrative image (Source: Human Resources Online)

Kuala Lumpur (VNA)
- Malaysianemployers will be responsible for paying the income tax of foreign workersbeginning from January 1, said Malaysian Deputy Prime Minister Ahmad ZahidHamidi.

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

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

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

These regulations not only ensure benefitsfor guest workers but also help better manage labour force and prevent humantrafficking.

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

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