a) 1.75% for construction work carried out by a Service Provider that has a small-scale company certificate, or work competency certificate in the case of individuals;
b) 4% for construction work carried out by a Service Provider that does not have company certificate, or no work competency certificate in the case of individuals;
c) 2.65% for construction work carried out by a Service Provider other than Service Providers mentioned in (a) and (b) above;
d) 2.65% for integrated construction work carried out by a Service Provider that has a company certificate;
e) 4% for integrated construction work carried out by a Service Provider that does not have a company certificate;
f) 3.5% for construction consulting service carried out by a Service Provider that has a company certificate, or work competency certificate in the case of individuals;
g) 6% for construction consulting service carried out by a Service Provider that does not have company certificate, or no work competency certificate in the case of individuals.
Final income tax imposition for a Service Provider that does not have certificates as stated in (b), (e) and (g) above, does not negate the obligation to have a certificate in accordance with the prevailing laws in the Construction Service sector. If the Service Provider is a PE, the above final income tax rates do not include the Branch Profit Tax.
What is meant by company certificate is a certificate issued by:
- a certification institute formed by an industry association that is accredited by the Ministry of Public Works and Public Housing, and the certificate is registered with the construction service development agency; or
- a certifying institute accredited by the Ministry of Mines and Energy Resources (“MMER”); or
- MMER itself.
In the case of individuals, work competency certificate is a certificate acknowledging construction workforce competency issued by a professional certification body, and the certificate is registered with the construction service development agency.