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Help with taxing

A. C.
Member
Mon, 23 Aug 2010 01:44:02 PM  (Last updated: Mon, 23 Aug 2010 02:09:23 PM)

Hello. I am an US expat and have been working as an English teacher with my current company (language center) for over a year. I have a set salary set and has been the same for about ten months now. This whole time, taxes have not been paid from the employee or employer. Now they are going to start taxing on my salary which is OK, my question is....Is my employer allowed to tax me on a salary that I have had for more than ten months? I was under the impression that the employer would have to readjust salary before they begin taxing me. Any help in this inquiry please?  I would really appreciate some support on this. I told my employer that it was illegal for them to take my taxes without adjusting my salary. This is what I got from your website regarding salary deductions:

24. Lawful Deductions.

(2) It shall be lawful for an employer to make the following deductions:

(a)deductions to the extent of any overpayment of wages made during the immediately preceding three months from the month in which deductions are to be made, by the employer to the employee by the employer¡¦s mistake;

Thanks :-)

KL Siew
Administrator
RE: Help with taxing
Mon, 23 Aug 2010 02:09:23 PM

In Malaysia, employers are required to make scheduled tax deductions from workers' monthly earnings and pay it to the Income Tax Department. I don't know if I understood you correctly. The tax they deducted from your salary is not for the company but is to be paid to the Income Tax Department. You are liable to pay income tax and the deduction  is what you call "pay as you earn" tax.

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