Incometax

You only pay 28% non-resident tax for the first 182 days.

That means by November 2018 you will change to resident tax

When you submit your tax return for 2018 (by April 2019) any overpayment of tax for Jan-Dec 2018 will be returned to you.

Okay thanks.

For me non tax resident is 1820RM (28%) per month.
Once I become resident tax how much amount I need  to pay?
Once I claim for refund in 2019 april how much amount I will get refund?

Please expalin in amount not in percentage for me and others to understand easily.

Note: My salary is 6500 Rm per month

Annual Salary 78,000
Tax free personal allowance 9,000
Taxable income 69.000

Annual Tax 4,500 approximately
Divide by 12 months = 375 per month

Page 7 https://www.pwc.com/my/en/assets/public … ooklet.pdf

Your housing will be taxable but I don't know the rate.

Assuming that you are a legal tax resident Hasil has a nice little chart on this for your Taxable Income.

http://www.hasil.gov.my/bt_goindex.php? … bt_sequ=11

But you must first subtract your deductions from your net salary (plus any other income you might make in Malaysia)

But lets start with your RM6500/monthly and RM58,500/9 months salary as a baseline.
First RM5000 is not taxed- That leaves RM53,500
Next RM15000 is taxed at 1% rate. That leaves RM38,500 (Tax accrued RM150)
Next RM15000 is taxed at 5% rate. That leaves RM23,500 (Tax accrued RM 150 + RM750)
Next RM 15000 is taxed at 10% rate. That leaves you with RM 8,500 (Tax accrued is 1,500RM for this segment +RM 150+RM750)
Okay you now have RM8,500 of income still remaining to be taxed...but it's at the higher %. The next 20,000RM of your income is taxed at a 16% Rate. So 8500*16% = RM1360.
So your accrued tax thus far is RM1360+RM1500+RM750+RM150).

That's RM 3760 total tax.

If you are allowed that RM9000 personal deduction you'd start off at RM49,500 and would just fall under the 16% category.
Thus everything would be as above RM0+RM150+RM750+@RM1500. That's about RM2400.

If you are currently being taxed at 21% for all your income then your taxes would be RM58,500*21%.
That's RM12,285.  So you should get about a nice RM9885 refund.  IF you are allowed the full personal deduction.

But I'm not a tax accountant or expert. I certainly don't know your personal circumstances. Maybe Gravitas knows the tax laws better.

Those are last year's tax rates Cinnamonape - tax rates went down in two areas for 2018

Your refund should be about 8,670

i.e. 1820 - 375 = 1445 per month overpayment
1445 x 6 month = 8670

This is based on your salary, but does not include your housing.

If your housing is valued at 500 per month then you will pay tax on that too. The rate is: "Lower of 30% of cash remuneration or defined value". Your employer can explain how they are rewarding you for housing.

I also corrected the fact that he's only working part of the year May-December. Duh.

The 5% rate went down to 3%; the 10% went down to 8% and the 16% went down to 14%. So with those changes your tax (if you have the personal deduction) would be @RM1800. Massive difference from that 21% non-resident tax (RM12,285).

RM12,285- RM1800 =  RM10,485 Refund.

Thanks gravitas cinnamonape.

Very clear thank you.

My house allowance is given by company and they added all related charges will be paid by company.
It mentioned in my contract.

OK they are giving you a cash allowance - not just giving you a room.

No they are giving accomadation by mistake I mentioned allowance.

What they mentioned, I will get shared accomadation
And the house related all expense will be carried by company.

Hi All,

A question. I am hoping to be at Penang for 7 months starting May this year. I will stay for more than 183 days that's required for the resident status.My question is before my contract ends .i.e 7 months can I apply for refund ? Or can I also apply for refund after going back to my own country ?

Refunds are processed in the last month prior to departure from Malaysia.