Can Non-Resident Expats receive their Tax Refund?

Hi. I'm have filed my tax clearance today since I'm going back to Philippines next month for good. When I got there in Hasil, I have filled up the In-out form. The officer told me that I am a non-resident still so there are chances that I cannot get my tax refund last 2017 (this made me confused). These are the details of staying in Malaysia:
I started working last year, Oct.30,2017. I understand that they have to deduct me 28% tax until July 1st (end of 182 days). I left the country for 13 days last January (went back to PH) and 1 day last June (went in SG, same date in passport). So I was confident that I only used 14days within 182 days. On July 6th, I went back again in PH since I was confident that I already completed the 182 days and stayed 8days during that time. Now the officer is telling me that I'm still a non-resident. My question is can i still have a tax refund even if I'm a non-resident? She just said that I cannot get the refund for 2017 and not sure with 2018. Thanks for the future response!

To become tax resident you need to add your absences to the 182 days to find your actual tax resident date i.e. 182 + 13 days + 1 day + 8 days.

You just need to be in Malaysia PHYSICALLY for a total of 182 days during 2018 to get a tax refund for 2018.

I think you misunderstood the "14 day" rule and that is why 2017 can't be linked to 2018 i.e. you had more than 14 days outside Malaysia before you reached to total of 182 days inside Malaysia (when you are outside Malaysia those days don't count towards the total of 182 required).

If you don't qualify as a tax resident, there are no refunds.

Hi, so total is 196 days right? this should be consecutive? coz if not consecutive, i have stayed more than 196 days here in malaysia for year 2018. if it should be consecutive, so there's no chance that i can get the tax refund? I saw this page in hasil that it can be not consecutive as long as you are staying the required days for a specific year. i.e., you stayed in malaysia for 122 days then after that stayed in US for 31 days then go back in malaysia for 61days. still considered resident. please clarify me thanks

You just need to be in Malaysia for a total of 182 days during tax year 2018 to become tax resident.

Here is the link:
http://lampiran1.hasil.gov.my/pdf/pdfam/PR6_2011.pdf

Hi Gravitas,

so meaning i can be a tax resident now coz I have completed the 182 days + 1 day + 13 days + 8 days right? I have computed my stay here in Malaysia and it's total of 221 days until end of septemeber. I believe they will compute until my last day in Malaysia which is on october. Is that the reason behind the officer's statement that I wont get the 2017 tax refund as punishment?

I dont know what date you went to LHDN but it might have been you did not qualify on that date and needed a few more days in Malaysia.

I don't think you have to count the day in Singapore because as long as you are in Malaysia at least some point during the 24 hrs, that day counts as "IN MALAYSIA"

I went today, Sept.20, 2018. Will leave on Oct.20, 2018.

Okay. So it's possible that I am a resident? Do you know on how can I have an update if Im already a resident? coz the officer said that they still need to review. They will give the Tax Clearance Letter after 10 working days.

So your issue is "Why can't I get a tax refund for 2017?"

The "14 day rule" applies.

This rule is used to LINK tax years so both are treated as being tax resident retroactively,

Your initial qualifying date to become tax resident was let's say 2 July 2018 i.e. 182 calendar days.

Until that date, you were allowed to have a maximum of 14 days outside Malaysia if you wanted to LINK tax year 2017 to 2018.

BUT for each day you were outside Malaysia you needed to add those days to the 182 days to find your new qualifying date.

So 2 July 2018 was no longer your qualifying date.

For arguments sake - your new qualifying date was 2 July plus 13 days (full days outside Malaysia).

That makes your new qualifying date 15 July 2018.

Okay now I understand why the officer in hasil told me that I can't get the 2017. She only mentioned that year coz of that issue. Does it mean that for the year 2018, as I have completed the 182 days and the days I added when I went out of malaysia, I can get the tax refund?

Gravitas wrote:

So 2 July 2018 was no longer your qualifying date.

For arguments sake - your new qualifying date was 2 July plus 13 days (full days outside Malaysia).

That makes your new qualifying date 15 July 2018.


Yes, but since I didn't know this rule, I went out again on July 6th and returned on July 15th. So it means the qualifying date is now moved again right? sorry for any confusion 😅

You left Malaysia again on 6 July.

This was before you reached your new qualifying date of 15 July 2018.

So you had more than 14 days outside Malaysia.

This cancels your eligibility to get a tax refund for 2017 as you failed to link the tax years.

Okay. That's fine. But how about my 2018 tax refund? Can I have it?

jhenmaniti wrote:

Yes, but since I didn't know this rule, I went out again on July 6th and returned on July 15th. So it means the qualifying date is now moved again right? sorry for any confusion 😅


The moment you were outside Malaysia for more than 14 days (before 15th July) it was no longer possible to link tax years.

Your qualifying date did move because you had to add the number of FULL DAYS you were in PH.  So your qualifying date to become tax resident for 2018 was 15 July 2018 plus full days in PH.

For arguments sake, let's say you were in PH for 6 full days.  Your new qualifying date was therefore 21 July 2018. (15 July + 6 days = 21 July)

21 July 2018 is when you had actually been in Malaysia for a total of 182 days during 2018.

Yup. Now I understand. The 14-day rule is because of linking two years i.e., 2017 and 2018. So I should not go out of Malaysia for more than 14 days coz if I exceeded, the 2017 tax refund wont be granted. Then the excess tax for 2018 can still be refunded since I have completed the days (the 182 days plus days I have used outside the country) before I go out the country. Now I understand why the officer said 2017 tax refund can't be done.