Waiting for refund for excess, and needing tax clearance soon.

Member since 14 January 2017

JasminLeeMember22 May 2018 05:40:47

Hi,

I am still waiting for my tax refund (for excess paid). I went into the tax office about 1 month ago, filled in the form with the table to show my entries and exits into Malaysia to prove residency. I am still waiting for my refund as I was in excess. They man at the tax office said it wouldn't take too long, but it still has not been paid. Can anyone give me a guideline?

My concern is that my contract is coming to and end in July, and I will be leaving Malaysia. My employer will apply for my tax clearance certificate, but how will it be issued if LHDN still haven't refunded my excess tax for 2017/2018? Does this affect it?

Thanks in advance.

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Gravitas ViP

Member since 02 March 2011

GravitasViP22 May 2018 05:50:58

9040

Are you sure there is a refund due yet? I ask because if 2017 is being linked to 2018 so that the overall rates are the tax-resident deductions, this could not be processed until 182 days in Malaysia in 2018.

JasminLee Member

Member since 14 January 2017

JasminLeeMember22 May 2018 06:20:30

Thanks Gravitas.

I arrived in Malaysia January 2017 and was in for the whole of 2017.

Gravitas ViP

Member since 02 March 2011

GravitasViP22 May 2018 06:28:13

9040

OK then it would be due after about 30 days if it was an online e-filing with LHDN - but not sure if the 30 days would be from the closing date to file for 2017 which was 30 April. Paper filing takes 2-3 months.

JasminLee Member

Member since 14 January 2017

JasminLeeMember22 May 2018 06:57:07

I initially did it on efiling but didn't realise I had to go in and fill in the table with travel days in and out for tax residency purposes. So I ended up going to the office to do that. So I guess 2 to 3 months from then.

Thanks Gravitas.

Gravitas ViP

Member since 02 March 2011

GravitasViP22 May 2018 07:36:32

9040

Did you get your certificate of residency? If that is obtained after 182 days then resident tax can be calculated going forward - this is just for others following in case they are not aware of the process.

JasminLee Member

Member since 14 January 2017

JasminLeeMember22 May 2018 07:48:57

I wasn't issued with an actual certificate of residency when I went to the tax office, but I had to apply for it and filled in all the forms so they have it on record. Does that count? Do I have to walk out of the office with an actual certificate?

Gravitas ViP

Member since 02 March 2011

GravitasViP22 May 2018 07:51:11

9040

The certificate is actually produced and mailed to you or collected. It is how the employer knows that they can safely adjust the tax deduction to tax resident rates after 182 days.

It can be useful for prevention of Double Taxation depending on if there is a Treaty in place.

JasminLee Member

Member since 14 January 2017

JasminLeeMember22 May 2018 08:07:50

Since January 2017, till now, I never went to the tax office as my employer never told me to go apply for it (I didn't know much about tax so I guess I should've done my research). Although they did reduce my tax after 6 months, but never asked me if I had left the country or not. Strange...

Yet the tax office needed my passport to confirm my residency so clearly a residency certificate had never been issued before.

Well the man at the tax office was very friendly and said everything was in order. But I still haven't received anything.