Income tax for a Professional Visit Pass.

Hello,

I would like some information regarding the income tax norms of an individual who will be working under a Professional Visit Pass in Malaysia for 6 months.

For PVP holders from countries with Double Taxation Agreement with Malaysia, income tax payment will be required if they were to stay for more than 182 days in total in a year. However as far as my research goes, India (my country) does not fall under the DTA category, so does this mean I have to pay the 26% per month?

If anyone could give me any information regarding this, or point me to any reading material on the same, it would be great.

Thanks in advance!

Yes, if you stay less than 6 months, then you will have to pay 26% per month for tax.

Double tax agreements usually mean you still pay 26% tax in Malaysia but can deduct that from tax back home (eg Americans who always have to file  atax return back in USA)

It never means you can not pay tax!!!!

Ahh, I see.. I'm aware I had to pay the tax, but wasn't sure that the amount was 26%. In particular, for a PVP.

Hi Nemodot

If we pay 26% tax per month for 6 months, can we get it back (atleast half) when we file IT returns at the end of year?

vaibhavjpr wrote:

Hi Nemodot

If we pay 26% tax per month for 6 months, can we get it back (atleast half) when we file IT returns at the end of year?


No not on a short contract. 6 months pay 26% flat rate. Can't claim back!!!!

I mean for the OP. You have to be here on 31 Dec of the tax year and have been in Malaysia for more than 6 months and not out of the country long (14 days I think but check)

So on a 6 month come in and go contract pay 26% tax. No refunds.

Hi Nemodot,

I have got an offer of 1 year contract. So in that case, what will be the chances to get?

Do you have any site where I can browse and clear my doubts regarding tax deduction and tax liability.

I think you'd better ask your employer about this. I don't think PVP can claim back the tax. After PVP, maybe you can get the visa for 2 years, then starting from there, you will pay the normal tax. But still high tax.

Loook at any of the big accountancy firms websites, KPMG, PwC etc and they have releiable guides.

However it isn't complex.

On a 1 year contract you become resident after 6 months. You pay 26% tax for first 6 months salary. After end of tax year Jan-Dec (you must be in Malaysia 31 Dec) you put in a claim online in Feb/March and get in March-May (I got mine very quickly this year). Best advice is not to leave Malaysia at all as simpler in that time.

When you leave you also claim over paid tax after cancelling visa and closing bank account (you would have overpaid a bit as they assume you are here 12 months).

I agree with Nemodot..!!

Dear all,
Having one doubt, the scenario as below:

I am assigned by my German Company to visit customer company in Malaysia. The customer applied me PVP for one year. I am not drawing a single cents from the customer company. So am I subject to Malaysia income tax? What is the procedures that needed to be done by me?

Seeking your advices here.

Thanks.