Education Finance, Equality, and Equity by Iris BenDavid-Hadar

Author:Iris BenDavid-Hadar
Language: eng
Format: epub, pdf
ISBN: 9783319903880
Publisher: Springer International Publishing

Box 2: Tax Incentive and Levy-Rebate Schemes in Malaysia

Two training incentive schemes have been implemented to encourage Malaysian firms to enhance their training efforts: The Double Deduction Incentive for Training (DDIT) tax incentive scheme and the Human Resource Development Fund (HRDF) levy-rebate scheme .

Under the DDIT scheme, firms may deduct twice their approved training expenditures from gross income for computing tax obligations. The scheme has been largely used by large export-oriented, multinational companies (notably in the electric and electronic sectors) – companies that would train substantially even in the absence of the subsidy scheme. Otherwise, take-up of the scheme has been low amongst the majority of firms (reaching only a few percent) – particularly of small firms focused on the domestic market.

The HRDF was established in 1992 with a matching grant from government. The objectives are “to facilitate and encourage employers in the private sector to systematically retrain and upgrade the skills of the workforce in line with their business plans and national development.” Unlike the DDIT, the HRDF is not a subsidy scheme. A payroll levy of 1% for employers with ≥50 employees (or, 0.5% for small enterprises wishing to participate) is used for reimbursement of firms’ approved training expenses up to the limit of their levy payments for the year. Depending on their training needs, firms can choose flexibly from among several programmes:approved training courses provided by registered external institutions

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.