Deductions from salary in Malaysia (other than taxes)...

Thanks for the reply...I appreciate you all...!

Sorry about the confusing post..!

I would be going out of country for about 10-12 days..so in that case when will I be completing my 182 days as I landed in KL on 9th Nov, 2013?

I had contacted my finance dept. and she was also surprised..so she said that she would personally go there and check all those things.

Any help would be much appreciable as I need to book my tickets..!!

Regards,
Abhishek

Can you please let me know what is the Average salary for an Engineer
(Mechanical) in Petronas Malaysia?

This may help approximate the salary:

http://fci.mmu.edu.my/files/my_salary_g … 2-2013.pdf

Hi

I came to Malaysia on 7th nov 2013. I read some where that employment under 60 days is exempt. I was on leave from 22nd dec 2013 till 7th jan 2014. So basically I did not complete 60 days of employment for the year 2013. So do I need to file a tax return? if yes then which form should I select? currently I am still in KL.

What about school fees paid to an international school?Are they deductable on the tax form?

School fees are not tax deductible.

They range from RM15,000 to RM50,000 per annum depending on the school and the age group. This may be helpful to check out different schools and the fees.  Don't forget that the fees do not include registration and one time payments say at signing up on a waitlist or to join the school.

http://schooladvisor.my/?p=schools

Hello All,

My name is Shobhit, I am from India. I joined a company here on 23rd June 2014. And there is my marriage on 27th Nov 2014 in India. Please let me know that for how many days I can go back to India for my marriage but I don't want to pay extra tax(26%) during this year(currently paying 15% tax and can file tax return for the extra tax). As I know that I can't stay in India more than 14 days in during first 182 days in Malaysia, and I am planning to go India from 23rd Nov to 6th Dec 2014 (14 days). I have below queries -

1. If I go to India for this duration (23-Nov to 6-Dec), I will complete my 182 days on 5th Jan 2015 so should I have to make another cycle of 182 days in year 2015 for less tax?

2. I don't want to pay extra tax(26%) for this year 2014, so can I go to India for these 14 days or should I reduce the number of days to stay in India as if I reduced it to 9 or 10 days than I will complete 182 days in this year 2014?

Please suggest, It will be helpful for me.

The 182 days is in any tax assessment period i.e. calendar year. So you can't complete on 5th January next year as 31st December is the last day of 2014.  If you are not in Malaysia for 182 days before 31st December you will pay 26% tax and if you have been having the first RM9000 tax free allowance calculated into your tax burden, that will immediately be cancelled out because non-tax resident workers don't get it.

Count your days carefully and 2. is probably the best scenario. If you don't complete your 182 days by 31 December 2014. You will then have to start from the beginning and pay 26% from January 2015 for 182 days and it will change to resident rates after 182 days and you can claim back the extra tax you paid and get the adjustment for the RM9000 tax free applied to the whole year.  However, you can first get a refund in about May 2016, after filing your full tax return in March 2016.

Hi

I would like to know few things. I would appreciate if any one can reply to this and help me solve this issue.

I started my employment on August 1st 2014, By end of December 2014, I will finish my contract.so I will not complete 182 days. How to claim the tax for 5 months which I will be paying 26%.

If I continue for next 1 month and complete 182 days. Can I claim the tax in feb 2015?

.

I want to do job in a. Company situated in penanag Malaysia , I just want to ask about the minimum threshold for salaried person . An minimum amount which is chargeable to tax ?
Explain : any amount Below is exempt from tax .

.

The facts are the same as in Example 2, except that Takayama left Malaysia on 17.12.2009 and returned to Malaysia on 01.01.2010. His stay in Malaysia and Japan was as follows:

Period of Stay in Malaysia    Number of Days
10.09.2009 – 17.12.2009 (Malaysia)

18.12.2009 – 31.12.2009 (Japan)    99


14 (social visits)
01.01.2010 – 31.12.2010 (Malaysia)    365
* Takayama qualified as a tax resident in Malaysia for the basis year for YA2009 as well as in YA2010. This was because his period of stay in Malaysia of 99 days in YA2009 (that period) and that period is linked to another period of more than 182 days consecutively in YA2010, throughout which Takayama was in Malaysia. The temporary absence (i.e. social visit) is considered as part of that period as the temporary absence has not exceeded 14 days and Takayama was in Malaysia before and after the temporary absence.

-------------------------------------------------

My question in this above example from mia.org is , as he has qualified to be a tax resident in 2009, will his tax be refunded in april -may 2010, or will it be refunded in april-may 2011 ?

Walter0202 - a person gets any tax overpayment refunded related to the tax year in question i.e. it is calculated on the return made for that year.

Oh So If come to Malaysia on 1st September 2015 and spend 182 days, I wont be getting my excess tax paid, returned to me for the period Sept-Dec 2015 ? I would only be eligible for the tax returns that will be generated from Jan-Jun 2016 ?

I'm quite clear after reading Nemodot's comment's. Then I read Gravitas's comment and it make me confuse again.
From my understanding of  Nemodot's comments:
https://lh5.googleusercontent.com/C_Q6FjYHdh62K2wtSKzELX4zXC02UQ3PrKSeH6gUFTcMoyGz3WoRPTccXT6A7Gwf83wH1A1OOr61IIQ=w1576-h655-rw

But from Gravitas's comment, I can understant that:
https://drive.google.com/file/d/0B1KkkwU8lWzUV0N3MURuX3NlNGs/view?usp=sharing

So, which one is correct?
(excel file: https://drive.google.com/file/d/0B1Kkkw … sp=sharing)

Oh So If come to Malaysia on 1st September 2015 and spend 182 days, I wont be getting my excess tax paid, returned to me for the period Sept-Dec 2015 ? I would only be eligible for the tax returns that will be generated from Jan-Jun 2016 ?

Hi Walter ....

If you are start working on 1st of sept 2015 and want to claim the TAX for sept to dec 2015. you need to complete 182 days in 2016 with only break of 14 days. You should not leave the country for more than 14 days from Sep 2015 to June 30 2016. If you full fill this criteria you can claim the extra tax paid in 2015 .  So if you want money back donot leave malaysia for more than 14 days :):) . All the best ....

Abheshek

Thank you so much for your reply abhi.

Just one more doubt though, would i be able to claim any tax money back in 2016 or would it be only in 2017 ?

As an expat, you can opt in/out to contribute to EPF. To learn more about EPF, you may find this to be useful: http://help.payrollpanda.my/12465-Malay … is-the-epf

Perhaps you can check whether you're entitled on EPF

Hi guys,

I came to Malaysia on July 10.By Dec end I will be completing 175 days. What are my chances to be eligible for Tax refund ? When will I get the refund of all the taxes I had paid from july 2016 to dec 2016?

I am going to Malaysia suppose my sailory is 2000mrt.whats my tax deductible

Zero tax - annual earnings threshold starts at RM34,001 after EPF deductions (if any) - http://lampiran2.hasil.gov.my/pdf/pdfam … 9e0bdfcde3

Hi
I received EP for Malaysia and i am gonna work in Penang.  I got 8250 RM/Month.  Can anyone let me know what and all the dedcution will be there from my salary? And how much is the TDS? I am from India

28% tax for first 6 months (difference to resident tax rate can be claimed back)
Maybe medical insurance deduction
Maybe EPF (Pension deduction - from RM5 per month to 11% depending on offer letter)

I have question on it
let say person is Singaporean but working for Malaysia office and get paid by Malaysia and he stays in Singapore, so will he required to pay tax at all?

Tax is deducted where income is earned

Hi Gravitas,

I would like to know apart from staying 182 consecutive days in a calendar year,Is it compulsory to be physically present in Malaysia on last day of calendar year to be considered as resident?

As I reached Malaysia on 16th April 2017,got my EP2 on 18th May 2017 & left Malaysia on 4th December 2017.My concern is I did not stay on the last day  of calendar year 2017.Is there any problem?Will I be consider non resident due to this?

Thanks.

No the rule about being in Malaysia on the last (and first) days of the year was dropped quite a long time ago. But of course, the wonderful internet does not get a spring clean.

But your question puzzles me. You would have done your tax clearance when you left in December 2017 and any overpayment would have been repaid then.

Hi folks,

I am working in an MNC in Penang. I joined on April 26, 2018 and I was taxed for 28% flat for the first 6 months from the salary. Now Mlmy 6 months finished on 26th October 2018 and I am a resident employee currently and my salary is not taxed anymore.

However, I am travelling to my home country on 31st dec to 10th Jan 2019.

Will I be again put into that 28% tax bracket (starting january 2019) if I am not present in malaysia on 31st dec and1st Jan???

Looking forward to hear from any folks who can assist me in this