1.1ÌýÌýÌýÌý Introduction: overview of the domestic payroll system
Malaysia is a constitutional monarchy with a democratic parliament. Governance of Malaysia is organised as follows:
| Governance | Function |
| Government of Malaysia | This is a federal government, and it governs the whole of Malaysia. There are three branches: executive, legislature and judiciary |
| State government | Operates under a constitutional monarchy modelled on the Westminster parliamentary systems. Each state has its respective executive and legislative bodies |
| Local government | Local government has the power to:
– collect taxes (in the form of assessment tax)
– create laws and rules (in the form of by-laws)
– grant licenses and permits for trade
– provide basic amenities
– collecting and managing waste
– planning and developing the area, etc |
The fiscal year is the calendar year. The year of assessment (YA) is the year in which the income is earned and upon which tax is assessed.
The Inland Revenue Board of Malaysia (IRBM) is the tax authority collecting most Malaysian federal tax revenues. A comprehensive website for the IRBM includes English language
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