Tax Resident and Number of Days Calculation.

Hi .. You need to stay till June to become a tax resident as the last year it completes only 4 months you are eligible to claim the tax amount. this year you need to stay till June.

This is what I heard from my tax consultant.

Need to complete 182 calendar days in 2023 which should be around july 2. On those 182 days, you can take social visit outside malaysia only up to 14 days.

Counting for 14 days start when ur physically outside malaysia.

E.g. Social visit to india

April 1 - Departure from Malaysia/Arrival in India (counting not yet started as you were physically still in malaysia)

April 2 to 15 - Social Visit in India (14 days count)

April 16 - Arrival in Malaysia

@topranavp

Hello Pranav,

tax year in Malaysia is Calendar year that is Jan - Dec of any year.

In 2022 - you landed mid September, so your physical presence in MY is not meeting 182days for 2022. That doesn’t qualify you as tax resident for 2022.

Now in 2023, again the Day 1 starts from Dec 31, 2022. Your counting will start from this date to July 1 2023 equals to 182days (coz of 2days short in Feb).

if you are present this entire 6 months in MY not going outside of MY, you are qualified as tax resident.

Benefits:

1. once you complete the H1 2023, you are eligible to file tax returns for 2022 even it is for 4 months.
2. In 2024, when you file your tax in the month of March, you will get tax relief for 2023.
3. You can travel anywhere from July’23 onwards.
4. in case you have already planned your travels, please do not stay more than 14days as someone answered above. But make sure you present the proof of your visit. (This is enquired at the time of filing).

Alternatvely, you travel from March or April but if you can ensure to stay the next 6months from July to Dec 31, 2023 you will be tax resident. So it’s either H1 or H2 in FY.

please note you cannot club 2 different years for tax residency.

hope this helps.

Hi

I am going to be in similar situation in 2024 , not achieving 182 days rules.

If I pay non resident tax rate in 2024 , and If I don't leave the country till July 2 , 2025 , will I become tax resident for 2024 also ? Would the "overpaid tax" be available to offset for 2025 ?

Thanks.