Hello Members,
I have got a provisional offer from a MNC ( It has offices in India as well as Penang).
The salary is divided into Indian salary and Malaysian salary.
The issue is with Malaysian salary. HR says it will be a "net" salary and I don't have to pay tax on it. Instead employer will be paying tax. I don't know how this will work? Is it common? Will there be any issues?
Assuming employer pays tax, do you think I have to pax tax on that "net" salary (I mean whatever savings I have ) once I move back to India ?
Please let me know.
Thank you in advance for your time group members. You are doing an amazing job helping out people with a good information
Employer will be paying tax and will give net salary
spgite
09 July 2018 18:05:33
7
Gravitas
09 July 2018 18:11:12
9040
I think there is a Double Taxation Treaty between Malaysia and India which will guide how the remuneration in Malaysia is handled.
http://www.hasil.gov.my/bt_goindex.php? … p;bt_lgv=2
It's a complicated area because although Malaysia does not tax offshore income, if you have an Employment Pass, then technically the income is earned in Malaysia.
If its just a short secondment with expenses paid by the Malaysian entity and salary continuing from India and a Professional Visit Pass is the mode used, this is a different situation.
spgite
31 July 2018 11:07:18
7
Thank you for your reply Gravitas!!
Subscribe to this topic
Articles to help you in your expat project in Malaysia
The tax system in Malaysia
If you plan to move to Malaysia, you will need to consider several taxes and draw up a budget to get a better idea ...
Taxes in Malaysia
An individual is taxed on his chargeable income at graduated rates from 2 % to 30% after the deduction of tax ...
Year end tax checklist
As personal reliefs claim will reduce your chargeable income, it is a good time to check your qualifying tax ...
Driving in Malaysia
You are moving to Malaysia and want to drive for work or travel there? Follow our guide!
Kuala Lumpur's neighbourhoods
Kuala Lumpur is a real megalopolis, surrounded by suburbs and neighborhoods so different from each other that they ...
Phones and internet in Malaysia
Malaysians are known to be social media addicts, so there's no shame if internet access is one of your main ...
Open a bank account that suits you
Discover the best international banks to manage your money securely.
"