The Declaration of Independent Contractor Status Form is a critical document used in Malaysia when engaging independent contractors to provide services to a company. This declaration serves as a formal record establishing the nature of the business relationship and helps prevent misclassification of workers under Malaysian employment law. The document is particularly important given the increasing scrutiny of contractor relationships by Malaysian authorities and the need to clearly distinguish between employees and independent contractors. It includes comprehensive declarations about the contractor's business independence, control over work methods, financial arrangements, and statutory obligations. The form should be completed at the commencement of any contractor relationship and updated as necessary to maintain compliance with Malaysian regulations, including the Employment Act 1955 and related employment laws.
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1. Declaration Statement: Opening statement identifying the contractor and their intent to declare independent contractor status
2. Contractor Information: Details of the contractor including business name, registration number, and contact information
3. Nature of Business Relationship: Clear statement of the business-to-business relationship and absence of employer-employee relationship
4. Independent Business Operation: Declaration of how the contractor operates their own independent business
5. Control Over Work: Statement regarding contractor's control over their work methods, schedule, and delivery
6. Financial Independence: Declaration of contractor's financial independence, including own tools, equipment, and business expenses
7. Tax Responsibilities: Acknowledgment of responsibility for own tax obligations and filings
8. Social Security and Benefits: Statement acknowledging responsibility for own social security, EPF, and benefits arrangements
9. Legal Compliance: Confirmation of compliance with business registration and licensing requirements
10. Signature and Acknowledgment: Formal signing section with date and acknowledgment of understanding
1. Multiple Client Declaration: Section declaring that contractor provides services to multiple clients - use when contractor works with multiple companies
2. Specialized Equipment Declaration: Detailed section about specialized equipment owned and operated by contractor - use for technical or specialized service providers
3. Intellectual Property Rights: Section addressing ownership of intellectual property - use when services involve creation of intellectual property
4. Confidentiality Statement: Declaration regarding handling of confidential information - use when contractor has access to sensitive information
5. Insurance Coverage: Declaration of maintaining own insurance coverage - use when services involve significant risks or client requirements
6. Subcontracting Rights: Statement regarding right to subcontract work - use when contractor may need to engage other parties
1. Business Registration Documents: Copies of contractor's business registration certificates and licenses
2. Professional Qualifications: Documentation of relevant professional qualifications and certifications
3. Insurance Certificates: Copies of relevant insurance policies held by the contractor
4. Service Description: Detailed description of services provided as an independent contractor
5. Equipment and Tools List: Inventory of contractor-owned equipment and tools used in service provision
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