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Income tax related - 14 days outside Malaysia

Hi,

I am staying in Malaysia since March 2017. I am a student and I entered Malaysia with student pass. Along with studies I am working also and having employment pass. My employer says I need to be in Malaysia for 182 days and cannot go outside of Malaysia for more than 14 days.

My question:
What exact is this 14 days tax rule?
Is there any special provisions for 14 days - like can I visit India more than 14 days in festival seasons or on medical grounds?

Raju

Page 6
https://www.pwc.com/my/en/assets/public … ooklet.pdf

Thanks Gravitas for quick response. I have gone through page 6. So it says, I shouldn't be outside Malaysia for more than 14 days. I believe this document is authentic (as its not a government document but from PWC).

One more question, if I leave Malaysia on 15th July (before midnight 12) and return to Malaysia on 21st July's morning, will it be counted as 5 days or 7 days (for calculating 14 days)?

Raju

You can be outside Malaysia on business trips for any length of time and for health treatment. You just can't break your qualifying period by going on a personal trip or long holiday. The tax office has to set a limit in order to have some control over the 182 day qualifying period. Therefore they decided that the limit is 14 days for social reasons. Of course, when linking two years i.e. 2017 and 2018 this rule will apply to both years.. As soon as you become Tax Resident you can then take any absences you want because the qualification has been achieved once and for all.

But you will qualify in 2017 for tax residency if your work permit started in March 2017 (i.e. your salary started to be paid and tax was deducted..... Or if you are only now starting work, then yes, it is not possible to achieve 182 days between July and December. Your tax record guides the process.

Hi Gravitas,

Greetings.

Thanks again for the detailed information.

I started my work from June 2017, so when would 182 days qualify? Is it Sept 2017 or Nov 2017 (I arrived in Malaysia in last week of Mar 2017)?

One more query related to tax, my employer is asking me to take care of the tax all by my self. How should I start the taxation process?

Regards,
Raju

182 days is about 6 months. Check if you have to pay tax http://lampiran2.hasil.gov.my/pdf/pdfam/01_2017_2.pdf

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