Tax deduction in Malaysia

Tax rate is progressive after physical residency of 182 days within a tax year...until then you are subject to 30% tax rate. This would be the deduction on salary. If you become a tax resident you can apply for refund of the untaxed portion.

Here is a schedule of assessable tax rates.There would be no tax on your first 5000 MYR earned in the tax year. From 5001-20,000 the tax levied is 1%. From 20001-35,000 you will be taxed at 3% rate. On the next 15000 (ie. from 35,001-50,000 MYR) you'll have a tax rate of 6%. Etc.

https://www.hasil.gov.my/en/individual/ … /tax-rate/

There are also a variety of tax relief that can be used to reduce your gross taxable income.

https://www.hasil.gov.my/en/individual/ … x-reliefs/

@cinnamonape - hope you are well. My company has an opening in Malaysia for the same position I am currently on in the UK (Solutions Architect). For example If I am on £85,000 in the UK, that will be equivelent to 490,000 MR. My questions are:

1. Will I be charged at 30% as soon as I start working in Malaysia
2. Will I automatically move the the local tax after I believe 182 days (if i don't leave the country)? Or do I need to do something?
3. Will I be better off on the Malaysian tax overall do you think? UK tax rates are 0% upto £12K, 20% on £12-50K and 40% on £50K-£125K

Thanks in Advance

Sham

I presume that you'll be paid through your UK Office toyou UK bank account. In that case you will face UK tax. If you are paid through a Malaysian subsidiary then being a tax resident may be relevant.

1) If the latter your company will automatically withdraw the Malaysian income tax and that'll be at a 30% rate. https://www.hasil.gov.my/en/international/non-resident/

2) You should be assigned a TIN (Tax Identification Number) that will be on your salaty warrant.

3) Tax residency is calculated by CalenderYear (Basis year) so if you come in November you would not accumulate 182 days in a Calendar year. You would be able to claim a refund for some of that excess if you acquire tax residency the following year by linking.

https://phl.hasil.gov.my/pdf/pdfam/individual.pdf

If you somehow can choose whether or not you are a tax resident and the source of your income then here is the Tax Rate Schedule for Tax Residents.  https://www.hasil.gov.my/en/individual/ … /tax-rate/

Also subtract the following from your taxable income.

https://www.hasil.gov.my/en/individual/ … x-reliefs/