I got an offer of 8500 RM per month

Jaiganeshe - you can probably save about RM5k per month once you are tax resident.

Hi jaiganeshe,

I have created a new thread with your post on the Malaysia forum as you were a bit off topic on the other discussion.

Thanks

Priscilla 

Bangi is a bit on the outskirts of kl. Your main cost is accomodation, which will come to around 1000 ringit. sharing will be around half. You have the option of living in bangi or nearby kajang and nilai. the good part is there is a train station at all three for travelling between work and home.

The offer is good if u r earning 75000 in india. more than double than package. savings will b around 4k. maybe more if u cut costs.

Thanks for your detailed info Carlyle..!! :-)

Thanks priscilla..!! :-)

Thanks so much Gravitas..!! :-)

Hi,

I'm suppose to join at work location during November month 1st week.. so which means for this calendar year it will be less than 60 days.. so still I will be under tax deduction of flat 26% for this financial year..?? And what will be the tax deduction for 2014 & 2014 financial year..?? Mine is renewal contract once in every year. Negotiated Salary to 9000RM / month. Kindly please answer. Thanks in Advance.

NOTE: Non-resident individuals are subject to income tax at a fixed rate of 25% in 2015, reduced by 1% from current 26%.

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%

RM9000 tax free personal allowance is given when a person is tax resident.  None if non-tax-resident - a flat 25/26%

Flat 26% for november and december 2014 ie. 2340 per month. From Jan 2015 onwards, around 800-1000.

One small clarification, the 25% non-resident deduction continues until a person has been 182 days in the country. Then normal rates apply.  As long as you don't leave the country for leisure purposes of more than 14 days from 1st July 2015 you will pa lower tax and get the RM9k per annum tax free starter. You can claim your tax overpayment in April 2016 or you may be able to claim it earlier by going to HASIL.

Hi carlyle1979 / Gravitas,

But when I checked with my consultant (who released offer to me) saying that I will not come under 26% flat income tax even for the first six months as I'm going to stay over there for more than 6 months and also only my basic salary will come under taxable income as per the tax slab. I'm little bit confused on this contradict statement. Kindly please help me on this.

As per the company HR statement, he says that out of 9000RM/pm only 6000-7000RM will be my basic pay, rest all comes under allowances such as Travelling,etc. which will not entitle for taxable income. so only basic pay of 6000-7000RM /pm will come under taxable income. That too as per the tax slab from the initial month I start my work over there.. Is it true?

As the tax office does not have a crystal ball and does not know when you will become tax resident as you may not actually complete the 182 days required, the tax initially due is the non-resident rate. Of course in the longer view, you technically wont be paying non-resident rates as the overall tax will be equilised over the 1 year tax period Jan-Dec.

I am afraid that tax is also due on benefits in kind.

HR Dept often dont know the ins and outs of income tax as they dont necessarily deal with the payroll. I am afraid the non tax resident rules are quite clear.

What I think happens in many cases is that due to ignorance of income tax rules, a company may not apply the non tax resident rates. However, this works out OK as long as everything goes ahead as planned and you remain for the entire 12 month tax year.

Hi Gravitas / carlyle1979

Kindly please reply in which location I can rent a flat near my below workplace address. Also the place should be safe (day/night) and accessible to all limited amenities.. such as Bus Transportation / Market / Train / Hospital, etc. How much will be the Advance/Rent.

Work location Address:
RHB bank Bhd, Level 4, IT Centre. RHB Complex, No.8. Jalan Institusi, Kawasan Institusi, 43000 Bandar Baru Bangi, Selangor, Malaysia

Also kindly advise whether I can find few Indians(Tamil/Other Language) to make new friends near by that place.

Thanks in advance.

Advance rent is 2 1/2 times monthly rental plus first month in advance.  The 1/2 month is on account of possible non-settlement of utility bills. Sorry I dont know the area.