Salary Calculation Topic

Lets say your salary is RM17,500 per month (rounded up).

Until July 2019 your tax will be 28% flat rate (non-resident status)

Income Tax is calculated after your EPF 12% contribution is deducted (do check your contract regarding EPF because unless stated clearly, foreigners don't get the 12%/11% automatically).

There may be another deduction for health insurance depending on the company rules.

This Pricewaterhouse guide is useful to work out what will be your tax liability after you become Tax Resident. It also shows what deductions can be made before tax. The basic one is currently RM9,000 per annum tax-free personal allowance.

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

For 2018 you can't become tax resident because there are not enough days left in the tax year to reach the 182 required.

For 2019, you need to reach 182 days which will be about July 2nd. At that point your deductions will decrease to those shown in the table on page 7 of the guide.

There is a rather nice opportunity to get a tax refund for 2018. This is achieved by limiting the number of personal absences outside Malaysia (holidays) to no more than 14 days from 1st January-2nd July 2019. (Any days out of the max 14, must be added to 182 to find new qualification date).

If you keep to this "14 day rule" it means you will be able to link tax year 2018 to tax year 2019 and your tax will be reassessed retroactively at the Tax-Resident Rates.

If you take more than 14 days it just means the 28% flat rate still applies.

The retroactive recalculation also will apply to 1st Jan-2nd July 2019 i.e. any overpayment of tax (between non-resident and resident rates) will be reimbursed.

Cost of Living - Numbeo is a reasonable guide but quite a lot depends on what sort of rent you decide to pay and your lifestyle in general.

Your salary level will give the potential to apply for this personal visa after 3 years - Talentcorp - https://www.talentcorp.com.my/rpt

Hi,

Many thanks for that detailed explanation. Really helpful - will also feedback part of it to my company to achieve possible savings.

My contract says as discussed 11% + 12% and regarding health insurance, it says that this 209.060 includes EPF and COCSO).

Regarding health insurance, it says I will be provided with company private group insurance and does not mention any fees for that - assuming this means it's already covered and I don't need worry about it.

Regarding lifestyle costs, I'm single young individual so would just need to rent 1-2 max bedroom flat and need to feed myself + hopefully find some friends and go with them for a drink over the weekend. Assuming my salary would be good for that!

Thanks
Dariusz

First step would be to check the type of rental property in the required location to see how that will impact your budget.

www.iproperty.com.my or www.propertyguru.com.my are good starting places

Another high expenditure item in Malaysia is alcohol

Actually the statement about a salary including EPF is very odd. What does it mean?

Hey,

What exactly my contract says is:
Base Salary: MYR 206.060 (includes EMployee EPF and SOCSO) Paid monthly in arrears
Pension: EPF 11% employee and 12% employer

So from your calculations and my checks am I correct that I will have around 10 500 MYR on my account monthly?

Area (not sure is it business area or what) my office is located is The Pavilon Tower, Jalan Raja Chulan, 50200 - so will be looking something in walking distance or no more than 30-40 min in city communication.

Thanks
D

EPF and SOCSO are deductions.

So I guess it's a way of saying they will be deducted from your base salary.

I would guess so :-)

Many thanks for your assistance. Looking forward for it - 10k , 2k for apartment - should be OK!

Thanks
D

Pavilion is actually in Bukit Bintang on the fringe of KLCC which is the main business centre and tourist area of KL

There will be lots of choice of where to live close to the office but property comes at a premium. You probably wont want to walk far in 33 degree heat.

Staying in KLCC, Bukit Bintang, Bukit Ceylon and close to the action is probably the best solution, as most expat events take place there and people congregate in those locations.

Note: I added alcohol to list of high cost items in earlier post.

You wont find anywhere for RM2k. Expect to spend minimum RM3k and probably RM4.5k is more realistic

Hey, sorry mean 2.5 - 3 k - just googling through websites provided by you and that was the prices.  For 1 bedroom in this area.

Thanks
D

If you like running there is a fab track in the KLCC park at the twin towers.

Hey,

Thanks, mate - will give it a try. One thing on my list is getting to gym and finding so PA so I can keep my training plan from UK - running fits this perfectly.

Thanks
D

All residences have gyms here. Some better than others. Pools as well. Anything you want is available. The far east is full of entrepreneurs

I have used this calculator to know the tentative income tax - https://www.imoney.my/calculator/income-tax-calculator

Another one

http://jeremisong.com/income-tax/pcb-calculator/2018/

@Gravitas - Is either of this websites (in the comment above)  reliable? I don't know credibility. I have looked at the PwC document too but calculators are easier to use.

And a quick question - as per your calculations what would tax for an unmarried resident earning 17500pm but getting no EPF. So all up 17500 only.

I get a net salary of 14571.

Gross 210K less personal relief of 9K i.e. 201K.
First 100K -- 10900 + Last 101K -- 24240
Total 35140 i.e. 2928 pm
Net income 14571.

Is this right?