Living Culture and Living Cost in KL (Urgent)

No worries. Just go for it dude.

Hi you will pay flat rate 26% that can't be reclaimed and will be tax resident when you have been in Malaysia for a 6 month period either 1 July to 31 Dec or 1 Jan to 30 Jun. You cannot have more than 2 weeks holiday out of Malaysia per year.

Once you are resident you will earn approx 20.4k. School fees at a good expat school plus expenses will eat up 6-7k so say after school fees you will have 13k per month.

Whether it is worth taking depends on you current salary.

Rent really depends but 3k min.

Car 1.5k min. Cars are really expensive in Malaysia.

So easy to spend the whole lot really!

Nemodot
I have taken a vacation up to 1 month during 2013 and outside Malaysia but still saved resident status.  I don't really think u can't take more than 2 weeks ?

Hero55 - It is true, the maximum absence permitted for social purposes applies only to a person who has just arrived in Malaysia and is trying to estabish their tax resident status (182 days in a single tax year).
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Some thoughts:

1. Cost of Living
According to Numbeo, overall Singapore is 119% more expensive than KL. However, it is equally possible to pay Singapore prices in some shops, even for simple grocery items. Buyer beware and shop smart.

2. Safety
Personal safety depends on whether a person engages in risky behaviour. I believe the greatest threats are from bag snatching on a street and people who try and indicate there is something wrong with your car and then con you for fixing it by doing nothing. So both are controllable. Expat neighbourhoods and hang out places have both safety in numbers but also attract people looking to easily find large amounts of money. A lot of work is being done by erecting metal barriers on streets and CCTV installations.

3. International School
Depending on what you find to be an acceptable educational standard, primary fees will range from as little as RM1500 per month to RM5000 per month (higher for secondary education). This article is well worth reading:

Million Ringgit school fees

4. NightLife
Plenty of it in main areas such as KLCC, Bukit Bintang and at shopping malls - almost as expensive as Singapore.

5. Personal Income Tax (i know about the tax slabs, but what is 26% for first 6 months)
Tax steps on annual salary are:
                                2014                                                   2015
0-5,000                    0%                                                       0%
5,001-10,000           2% (RM100)             5,000-10,000      1%
10,001-20,000         2% (RM100)             10,001-20,000    1%
20,001-35,000         6% (RM300)             20,001-35,000    5%
35,001-50,000       11% (RM1,200)          35,001-50,000   10%
50,001-70,000       19% (RM2,850)          50,001-70,000   16%
70,001-100,000     24% (RM6,650)         70,001-100,000   21%
Exceeding 100k     26%                          100,001-250,000  24%
                                                               250,001-400,000  24.5%
                                                            Exceeding 400 000  25%

NOTE: Non-resident individuals are subject to income tax at a fixed rate of 25%, reduced by 1% from current 26%.
To gain tax resident status a person has to be in Malaysia for 182 days in a single tax year (Jan-Dec). If the status is not gained in the first tax year (2014) then 25% tax is paid for 182 days in the next tax year (2015). While a person is non tax resident, they do not have any allowances (RM9,000 per family and RM1,000 per child) and no refunds of additional tax above normal rates is made. However, in 2015 once the normal tax regime has been applied, the whole year is classified as tax resident. In April 2016 a tax return is filed and HASIL will refund the over tax paid and apply the allowances. This does not happen for 2014 because tax residency cannot be established as it is too late in the year to achieve the 182 days.

6. Driving License
Depending of nationality or which licence you hold, which of two methods are required. Inexpensive but time consuming to do. Proof is required that the licence being exchanged is authentic.

7. Residential Area near KL Sentral.
Bangsar (Sentral has a small amount of good class accommodation and the neighbourhood is gradually improving with the opening of Nu Sentral Mall)

8. Other areas you would like to highlight.
Areas popular with expats include the Damansaras, Mont Kiara, Hartamas, KLCC, Ampang
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Thanks Gravitas, Nemodot, Hero55 for your valuable feedback...
Cheers!!!

Hero55 and Gravitas you are wrong about tax! 2 weeks max in any year..

You cannot take total vacations of more than 2 weeks and remain resident. The tax authorities are randomly picking on people and if they find out you get a massive tax bill! Happened to someone I work with. You are supposed to inform the tax authorities so in effect you are now a criminal (tax evasion).

I don't spend more than 2 weeks on holiday. The rest is for training/business meetings etc and I have the letters ready to show this is because you are allowed out for non social reasons for more than 2 weeks.

Gravitas you are way behind the curve on school fees. Cheapest is 3.5k a month for a so so school (primary) Good international schools cost upto 9k a month including all the extra misc fees. That is why so many expats these day are single or childless as employers cutting costs.

As tax residency is all about 182 days per year I really cant see that going on holiday for more than 2 weeks has any impact.

In fact the days present in Malaysia are accumulated during the year calendar year, so even several separate periods are added together. This is clearly shown by the examples that are given:

Tax Regime in Malaysia - Tax Residency

The first year arriving is important. Once a person has got tax residency i.e. 182 days straight in one calendar year (T&Cs apply) - that year they become tax resdent. If that is not achieved in that calendar year, then they remain tax non resident and have to try again in the next year. They continue to pay non resident tax rate (26/25%) - if the employer deducts their tax correctly - and then should change to normal tax once they have achieved tax resident status. Accordingly the 15 days social absence will apply in any year when a person is trying to become tax resident.

The good thing is that any over tax can be refunded, if they have overpaid. The tax office does not have a crystal ball, so they dont know whether a person is going to stay to the end of the year and therefore become tax resident. So the non tax resident rates are applied until it is clear the number of days has been fulfilled.

The problem in all this - underpayment of tax can occur if the **EMPLOYER** has not deducted income tax correctly. Then a tax demand will arrive in the mailbox. Employers i.e. the staff working in the company - may not understand the tax rules and the residency requirements and therefore just deduct normal tax when they should be deducting more.

This is a bit of a minefield and definitely something about which to be aware and check the correct amount of tax is being deducted, asking HASIL if necessary for clarification.

Gravitas, the link your shared explained everything extensively. Thanks Mate...

Jasjottoor - I agree with your interpretation (see my posting above yours). Achieving tax residency is the goal of the 182 days and there has to be some rule about continuity of days, otherwise people could just jet around the world and be tax resident in any number of countries (used to happen).

Agreed Gravitas....

No I am correct. It happened to two staff in my company. They were really pissed off,at massive tax bill. They were picked at random and audited.

2 weeks max out of Malaysia for social reasons at any time! (some might argue 2 weeks in 6 months but tax office said 2 weeks a year)

To get around it ensure you have proof you are out on business/training. For this you can be out of Malaysia. You can ignore my warning but don't say I told you so if you are randomly audited!