Hi
My family and myself are planning to move to KL in early 2019.
I will be required a working VISA and two children will need to attend school (at kindy level).
In terms of school enrolments I assume there will be no restrictions so long as I hold a valid working VISA ?
Also, There will be some allowances for school fees an motor vehicles etc. But we are unsure of how tax system applies in Malaysia including EFP & other Reasonable Allowances. Could anyone please help clarifying the below ?
Q1.
It seems there will be a flat rate Tax 28% for the first 182 days and I assume it will be reduced to certain rate expending on income level. Am I understanding it correctly in terms of tax rate ?
Is there any website I car refer to know about applicable income tax rate in Malaysia?
Q2
In terms of EPF, I believe contribution towards EPF has to be made by both Employee (at 11%) and Employer (at 12%).
Is there any mandatory % requirement that Employee must contribute toward EPF ? or are they optional for a foreign national employees?
Q3
I have also read from other topics that income tax (24~28%) will be calculated after EPF portion being deducted.
So, assuming my gross salary (before tax) is at 25,000 pcm.
Will my income tax apply after 23% (11% Employee + 12%Employer ) of EPF contributions?
i.e. Gross Monthly Income. 25,000 - EPF (23%) -5,750 =$19,250.
Income Tax 28% of $19,250 = 5,390.
Net Income after Tax = $13,860?
Is this how it should be calculated ? Otherwise, could you please advise the way it should be calculated ?
Q4.
We do require some assist in terms of school fees / rental house / motor vehicle allowances, but we are unsure how tax system works interns of these allowances. Are these allowance also considered as taxable income? or will they be exempted from income tax?
Q5. I assume Health Insurances are optional and it can be selected by an individual or company provided depending on how employment Contract set up.
Any clarification would be much appreciated.
Thanks
JW