Malaysia SOCSO (Social Security Organization)

Malaysia SOCSO (Social Security Organization)

Malaysia SOCSO (Social Security Organization), also known as PERKESO (Pertubuhan Keselamatan Sosial), was established in 1971 under the Ministry of Human Resources (formerly known as Ministry of Labour) to provide social security protections to all employees/workers in Malaysia. PERKESO is an organization to provide insurance coverage against job-related injuries and disabilities, workplace accidents, occupational diseases and death. SOCSO receives monthly contributions from employers and employees, using this to build up a fund which will pay out social security benefits when such accidents or illnesses occur.

perkesoWhat are Employers / Employees responsibilities?

An employer must register any employees employed under a contract of service or apprenticeship and earning monthly wages of RM3,000 and below. For employees earning RM3,000 and above, registration is optional and must be agreed upon by both employer and employee (except if said employee has registered with SOCSO in their previous employment, under the 'Once In Always In' policy, in which case contribution is mandatory) Employers and registered employees have to contribute a percentage of wages to SOCSO regardless of the employment status whether it is permanent, temporary or casual in nature.

 

What kind of Coverage do Employees get?

SOCSO provides protection to eligible employees through two schemes:

1.Invalidity Pension Scheme

This scheme provides protection to employees who suffer any invalidity due to causes not connected to their employment, permanent or not or is unlikely to recover, which results in an employee being incapable of earning at least one-third of a employee at normal capacity. The benefits available under this scheme are invalidity pension, daily care allowance, funeral benefits, rehabilitation benefits, education benefits, and invalidity help.

2.Employment Injury Insurance Scheme

This scheme provides protection to employees who suffer from an an accident or an occupational disease arising out of, and in the course of, his employment. It covers accidents while at work, accidents while travelling, accidents during emergency and diseases caused by nature of work (eg. loss of hearing due to prolonged noise exposure). The organization will provide medical benefits, temporary disablement benefit, permanent disablement benefits, daily care allowance, rehabilitation benefits, family liability benefits, funeral benefits and education benefits.

 

What Types of Income are Included for SOCSO Deductions?

All remuneration payable in money to an employee is taken into account as wages for the purposes of SOCSO contributions. These include the following payments:

1.Basic Salary

2.Overtime payments

3.Commission

4.Payments for leave such as annual, sick and maternity leave, rest day, public holidays

5.Allowances such as performance incentives, good behavior, cost of living (COLA)

6.Service Charges

 

Payments not liable for SOCSO deductions:

1.Payments by employer to any pension or provident fund for employees

2.Mileage claims

3.Gratuity payment(s) for dismissal or retrenchment

4.Annual bonus

 

Types of Contribution

1.First Category (Employment Injury Scheme And Invalidity Pension Scheme)

For employees below 55 years of age. The contribution is paid by both the employer and employee for Employment Injury Scheme and Invalidity Pension Scheme.

2.Second Category (Employment Injury Scheme Only)

For registered employees above 55 years of age and still working, newly registered employees above 50 years of age, and for a previously Insured Person receiving Invalidity Pension who is still working and receiving wages which is less than 1/3 of the average monthly wage before invalidity. Under this category contributions are only paid by the employer for protection under the Employment Injury Scheme.

 

Rate of Contribution

For the Employment Injury Insurance Scheme and the Invalidity Pension Scheme, the employer pays 1.75% of remuneration up to a maximum of RM51.65 a month, while the employee pays 0.5% of remuneration up to a maximum of RM14.75 a month. This maximum is hit when wages exceeds RM2,900.

 

For the Invalidity Pension Scheme only, the employer pays 1.25% of remuneration up to a maximum of RM36.90 a month, with no deduction from the employee. For ease of calculation, the exact contribution is slightly different from the intended 2.25% and 1.25% above, whereby contributions are determined in a tabular form depending on the level of wages. A full table can be seen here.

 

Contact Us

If you have further queries, please contact Tannet

24 hours Malaysia hotline:603-21418908;

24 hours Hong Kong hotline:852-27837818;

24 hours China hotline:86-755- 36990589;

Email: mytannet@gmail.com

TANNET GROUP: http://www.tannet-group.net , http://en.tannet.com.my

Corporate Structuring and Restructuring

Corporate Structuring and Restructuring

Corporate Structuring and Restructuring is often performed by corporate structures to achieve their business and commercial objectives.

Corporate Structuring and Restructuring

Corporate structuring and restructuring services include the following:

1. Advice on regional corporate structuring, restructuring and reorganisation.

2. Dedicated corporate structuring solutions for regional share and asset acquisitions.

3. Advice on corporate structuring and licensing to fit multi-jurisdictional business activities and commercial needs.

4. Drafting, reviewing and advising on all related structuring agreements, regulatory advice, strategy and compliance.

5. Advice on establishing and developing free zones and related regulatory and legislative framework.

6. Advising government authorities on regulatory frameworks to attract foreign investment and facilitate corporate incubation.

7. Advising on all aspects of corporate licensing.

8. Advising on and implementing changes to corporate ownership structures.

9. Advising on corporate matters connected with government tendering.

10. Corporate due diligence for share and asset acquisitions or internal housekeeping.

 

Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline603-21418908;
24 hours Hong Kong hotline852-27837818;
24 hours Hong Kong hotline86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.nethttp://en.tannet.com.my

Malaysia Company Audit

Malaysia Company Audit

The Companies Act of Malaysia requires every private limited company in any parts of Malaysia to appoint an approved Malaysia company auditor or audit firm to audit its accounts and report to the members of the company annually.

Audit Company

For any business that is registered as a sole proprietor or partnership carrying out business in Malaysia is not required by law to have its financial statements audited annually.

 

All companies, regardless of their size, must have its accounts audited by the auditors every year before the Annual General Meeting (AGM). The shareholders shall then adopt and approve the audited accounts (audited financial statements) during the Annual General Meeting (AGM).

 

To be an approved Malaysia company auditor, the applicant is required to be a member of Malaysian Institute of Accountants (MIA) and must be approved by the Ministry of Finance to practice as auditors in Malaysia. The audit license can be obtained with recognized academic or professional qualification and relevant professional practical experience. The Ministry will grant an audit license for approved auditors in Malaysia for a period of two (2) years and the audit license is renewable.

 

Malaysia Company Audit must be performed to obtain reasonable assurance whether the financial statement of the company is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.

 

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements. An audit of financial information enhances the credibility and reliability of financial information and financial statements. Reliable information is necessary for users of the financial information such as investors, creditors and financial institutions.


The audited financial statements are those accounts which have already been audited by the company auditors. The auditors will at the auditors’ report express an opinion whether the financial statements are prepared, in all material respects, in accordance with Private Entity Reporting Standards and the Companies Act 1965 in Malaysia so as to give a true and fair view of the financial position of the Company.

 

Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline:603-21418908;
24 hours Hong Kong hotline:852-27837818;
24 hours Hong Kong hotline:86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.nethttp://en.tannet.com.my

Outsourcing Bookkeeping & Accounting Services in Malaysia

Outsourcing Bookkeeping & Accounting Services in Malaysia

Outsourcing Bookkeeping & Accounting Services in Malaysia, Tannet group offer clients a full range of book keeping and accounting services in Malaysia to a wide range of clients operating across a broad spectrum of commercial, industrial, professional and non-profit sectors.

bookkeeping

 

Most of the clients will choose for Outsourcing Bookkeeping and Accounting Services in Malaysia due to the cost-effectiveness of the services. Also, this service will achieve better control and understanding of cash flow and thereby make informed financial decisions.

 

Moreover, Outsourcing Bookkeeping & Accounting Services in Malaysia can assist clients to increased focus on establishing the core business and maintain an efficient account management system such as achieving high level of accuracy for account information; saving up on processing time; avoiding bank reconciliation worries related to financial institutions; and etc.

 

 

Why choose TANNET for outsourcing bookkeeping and accounting services in Malaysia?

1. Get access to our professional expertise
2. Provide professional accounting software system to generate the company’s account
3. Quick turnaround-time
4. Save more than 50% percent of operating costs
5. Easily keep up with customer data on both ends to avoid confusion

 

Our services included:
1. Account Reconciliation
2. General Ledger Maintenance
3. Payroll Processing and Administration
4. Cash Flow Management
5. Filing account documents

 

Contact Us

If you have further queries, please contact Tannet

24 hours Malaysia hotline:603-21418908;

24 hours Hong Kong hotline:852-27837818;

24 hours China hotline:86-755- 36990589;

Email: mytannet@gmail.com

TANNET GROUP: http://www.tannet-group.net , http://en.tannet.com.my

 

Malaysia Feasibility Study

Malaysia Feasibility Study

Feasibility Study is an analysis of the practicality of a proposed project. The main objective of feasibility study is to objectively and rationally study the strengths and weaknesses of a business or proposed venture. The two main factors to judge feasibility are cost required and value that will be attained.

 

Malaysia Feasibility StudyA typical feasibility study covers the following five major areas:

1. Technical Feasibility

2. Economic Feasibility

3. Legal Feasibility

4. Operational Feasibility

5. Schedule Feasibility

 

Benefits of Feasibility Study:

– Allows you to understand the risk/reward benefit, opportunity costs and overall return.

– Identifying the Optimal Timing

– Cash Flow Planning and Projection

– Allows efficient Supply Chain Management

 

Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline603-21418908;
24 hours Hong Kong hotline852-27837818;
24 hours Hong Kong hotline86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.nethttp://en.tannet.com.my

Malaysia Due Diligence Report

Malaysia Due Diligence Report

Due Diligence is an investigation or audit on a business or individual prior to a potential investment. Due Diligence is a safety measure to prevent unnecessary harm that may arise to either party involved in a transaction.

 

due-diligence

 

Types of due diligence

There are three main types of due diligence:

– Legal Due Diligence which covers not only the acquisition target but also the documentation involved in the transaction. Some of the primary points would be the corporate information, existing contracts, litigation, real property, intellectual property, employment issues, and compliance with laws.

 

– Financial Due Diligence which involves the evaluation of the company’s financial performance via a review of financial statements, balance sheets, bad debts and income tax returns.

 

– Commercial Due Diligence that includes customers, sales, markets, competitiveness, projections, together with legal and financial due diligence.

 

Benefits of Due Diligence

 

– Protect the reputation of your company by making sure that your organisation is not linked to any kind of bribery, fraud or corruption via a third party, customer or supplier.

 

– Allows evaluation of any risk that may arise from a potential partnership or acquisition.

 

– Provides an overall insight to the performance and stability of an organisation

 

Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline603-21418908;
24 hours Hong Kong hotline852-27837818;
24 hours Hong Kong hotline86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.nethttp://en.tannet.com.my