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Enquiry about non resident individual income tax and refunds

I'm a foreigner got permit to work in Malaysia as knowledge worker and my employment started in August 2017, I was taxed at 28% monthly for 5 months (Aug-Dec) in 2017 and following year 2018 I still get tax 28% suppose to be 6-7 months as per 182 days criteria. I will proceed e-filling or manual tax submission soon, and wish to get tax refunds then need experts or whoever experienced, give advice followings;

1) I left out Malaysia 10 days in Oct 2017 for social visit, will I entitle refunds for tax payments in 2017 ?
2) Percentage of the refunds vs. tax payments?
3) Any issues caused the refunds to be rejected ? 
4) If I get new job in May 2018, how many months that I will get tax 28% under new employer?

Or you may share your direct experience will be much appreciate.


Thank you very much in advance :)

fatmocca :

1) I left out Malaysia 10 days in Oct 2017 for social visit, will I entitle refunds for tax payments in 2017 ?
2) Percentage of the refunds vs. tax payments?
3) Any issues caused the refunds to be rejected ? 
4) If I get new job in May 2018, how many months that I will get tax 28% under new employer?

1. The 10 day absence will not affect your tax position.
2. No repayment of overpaid tax for 2017 until 182 days in 2018 completed - and then when filing annual tax return in 2019. (Refunds are only settled (1) on leaving Malaysia and (2) via annual tax return.
Eventually it will be the difference between 28% and what you pay under the tax-resident progressive rate system (which depends on salary)
3. The 28% flat rate non-resident tax is to do with number of days, not who was your employer. So you will become tax resident in July 2018.

HOWEVER, don't leave the country during the first 182 days for leisure purposes for more than 14 days, because that will mean (1) you will have to pay full 28% for 2017 and (2) your qualifying period (i.e. 182 days residence in Malaysia) will be delayed by the time you are out of the country.

Thanks Gravitas for helpful info.
Actually I left the country 10 days in Oct 2017 and 10 days in Jan 2018, meaning when filing annual tax return in 2019 I can't get overpaid tax in 2017 ?

The 14 days maximum absence during qualifying period of 182 days in 2018 has not been exceeded (so far).

Therefore it is possible to link Tax Years 2017 and 2018. This means retrospectively 2017 will be viewed as being tax resident period. The calculation of tax due in 2017 would then be revisited and calculated on the basis of the tax-resident progressive rates

This is PROVIDED no more absences for personal reasons which would bring the total ABOVE 14 days are taken, during the remaining qualifying period of 182 days* (i.e. until July 2018).

* the 10 days you have taken in January 2018 mean your qualifying date to be tax-resident is delayed by 10 days.

Gravitas,

Noted with thanks!  :)

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