Tax Resident query

Unless you are planning to leave Malaysia in 2019 before you have become TR ie been in the country for a total of 182 days then your absence is irrelevant except the 20 day absence in April will delay your qualifying date to become TR. Linking tax years concerns two years when in one you are deemed Non-resident through failure to have a 182 day presence and its beneficial to link that NR tax year to a TR tax year.

Hi Thanks for the clarification. Does the 182 days need to be consecutive ( without more than 14 day break.)..meaning will my calendar set to “0” after the 20 day break in april or the  100+ days i stayed in 2019 will count  for the 182 days

It's a total of 182 days during a tax year (Jan-Dec) and not consecutive.

The 14 day rule is only relevant to link tax years which you don't need to worry about because:
(a) you were already TR in 2018
(b) you will be here at least 182 days in 2019

TR is achieved normally about 2nd July and if you take 20 full days outside Malaysia in April then you will qualify on 22nd July as TR for 2019

Many thanks for the detailed clarification. It helps.

Hi Gravitas,

How can I work out my tax rate once I am considered tax resident (completed 182 days)? I am confused when trying to digest PWC tax report. Any advice is really appreciated.

Many thanks,

Rich

First step is to work out your allowances or tax free income. For argument sake lets just say its your personal allowance of RM9k per tax year.

1. Calculate your annual salary
2. Deduct your personal allowance of RM9k
3. Find the nearest point on the PWC scale
4. Work out higher last salary portion which falls in the higher %
5. Add the 2 amounts together to get total tax due
6. Divide by 12 to get monthly deduction