As expected, the prime minister announced tax cuts in individual income tax rates in Budget 2015 tabled in parliament on 10 October, 2014. The reduction in tax rates were highlighted in Budget 2014 and will be fully effective in the year 2015 assessment. This is certainly good news for tax payers as the government will implement the goods and services tax (GST) starting from 1 April, 2015.
The following table illustrates the income tax rate for each taxable income group for the year 2015 assessment onwards. As you can see in the table below, the tax rate increases accordingly with your taxable income per annum.
Most companies remained cautious in the first quarter of 2013 while they waited for financial uncertainty in foreign markets to settle. However, this didn’t last long and the rest of the year was much more positive with job openings across the IT sector encouraged by multinational companies looking to Malaysia for their technology needs.
In Malaysia, the recruitment market in the field of supply chain, procurement and engineering was relatively active in 2013 and this provides for a strong indication in the year ahead. This activity was influenced mainly by companies in consumer, healthcare, retail and manufacturing. In the mean time, the majority of professionals hired in service sectors, such as shipping, third party logistics (3PLs) and 4PLs, were mostly hired as replacements rather than new appointments.
2013 was a positive year for the accountancy sector particularly as new shared service centers opened across the region. Growth in this area was supported by Malaysia’s economic stability, infrastructure and government incentives, together with a strong pool of qualified professionals. As a result, accounting professionals and heads of shared services found themselves with more opportunities, a trend that is set to continue this year.