As an Employer, What are their Obligations in terms of Income Tax?

Employer's Income Tax Obligation

The IRB will audit employers on a regular basis to ensure that they are complying with their income tax reporting obligations, such as timely submissions of the relevant tax statutory forms and proper deduction of Monthly Tax Deduction (MTD). If employers fail to meet their tax obligations, penalties will be imposed.

Therefore, to mitigate the risk of being penalised due to non-compliance, employers must ensure that their HR personnel are kept up to date on new tax developments in order to adequately discharge the employer's tax obligations.

                       Employer’s legal duties and obligations under the Income Tax Act 1967 (ITA 1967):                        

                                                     Consequences of Non-compliance and Penalty                                                         

Reference 1: Audit Framework for Employer

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