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Malaysian employers to pay tax of foreign workers

31 Dec, 2016 18:48:07

Online Desk: Malaysian employers will be responsibleto paythe levy of foreign workersbeginning fromJanuary 1 on Sunday, said the country’s home ministry.

Malaysian Home Minister Dr Ahmad Zahid Hamidi yesterday said that employers would no longer be able to deduct the wages of their foreign workers for the levy.

Currentlythe foreign workers in Malaysia have to pay Ringgit 2600 annually as the tax from their salaries.

This new ruling comes under an Employer Mandatory Commitment (EMC), aimed to ensure that employers are fully responsible for their foreign workers.

Dr Ahmad Zahid who is also deputy prime minister of Malaysia said the commitment would be in effect from the application stage right up until the foreign worker is sent back to their country of origin.