OF FRANKING DIGITALLY and DIGITAL FRANKING…. INSURANCE GUARANTEE and INSURANCE POLICY
A few months ago numerous insurance companies wrote to the Stamping Office of the Malaysian Inland Revenue Board (IRB) requesting that the stamping requirement for insurance bond or guarantee issued to cover foreign workers be simplified or to allow self-franking by the insurance companies themselves. Of course the original intention was to complain against certain companies and shame them (in public) over the manner the “Stamp Duty Paid” mark was placed onto their Foreign Workers Insurance Guarantee (FWIG) policy. At that time the public understanding was that any documents falling under BOND or GUARANTEE must be stamped at the Stamp Office and not to be handled by any third party.
THE REPLY? This was of course met with the usual reply – very official, very protocol and most of all, it was too low key…. but mind you, they did to a certain extent reprimanded some insurers for doing things erroneously. And they did mention FRANGKI DIGITAL but I guessed only Kurnia noticed this where the industry at large failed….
You may want to take a look at the Lembaga Hasil Dalam Negeri (Inland Revenue Board) letter dated 15th March 2012 | Click Here
“A RM300,000 SPENDING….”
Kurnia thereafter spent a whooping RM300,000 for their 15 agents who hold sizeable Foreign Workers Insurance Guarantee premiums, for the purpose of setting up all the necessary hardwards, softwares and network installations. That’s some big money spending but what’s the heck as FWIG business is extremely profitable. But then I am not too sure if this costs eventually find its way in the new Malaysian Tax Ruling (Section 83A of the Income Tax Act 1967) since this is in one way or the other benefited the agents concerned. And on the other side of things is our Inland Revenue Board…. Well have fun reading the joint press release below:
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