Tax rebate details

Hello Blogger

I came to Malaysia on 02 Sep 2014 and my employer started deducting 26% tax from my salary for first 6 months.
Now I'm getting my salary after a nominal deduction of 12 or 13% of tax for my salary.
My employer gave me a EA form to submit to HASIL office. Once I submit would i get my tax rebate which was deducted on the first 6 months?

On top of this my leaves to home country India are as follows

15, 16, 17, 18, 19 nov 2014
1, 2, 3, 4 jan 2015
28feb, 1, 2, 3, 4 mar 2015

Other country visits are

6, 7 Dec - Singapore
13 dec- Thailand

Can you please let me know if I will be eligible to get this rebate.

Well you were not tax resident in 2014 so no refund due yet. Actually your company should still be deducting flat rate tax because you need to work 182 days in 2015 to qualify for the scale deductions. You should send in your tax assessment form (I thought it was form BE you need to fill out) so that next year you can get your refund for any overpaid tax in 2014/15. The wording of the rule says that to get a refund, a non-resident tax year has to be linked to another period of 182 days or more (in your case 182 days in 2015) before they refund overtax paid.

I agree with above "new" interpretation of tax rules means you wont get anything back for last year. Whoever told you you would (HR?) are wrong as tax rules were applied wrong in past.

Hi

I reached malaysia in november 2014 and my employer deducted tax @ 26%. I went to LHDN office for e filing my income tax returns and filed  form M which is the form to be filed if you are  non resident in that year. I enquired with tax office for refund of extra tax paid in 2014 and they gave me a good news that you dont need to wait upto march 2016 for claiming the extra tax paid. Once u complete consecutuve 182 days in malaysia in 2015, (social visit of 14 days is allowed) u can go the tax office and submit claim for refund. U need to provide some documents to them and they will check and then process your claims.

documents to be submitted:

1) Photocopy of all pages of passport
2) EA form 2014
3) acknowledgment receipt of filing form M for 2014
4) document providing in and out details from malaysia. (they will give this document to u there itself to fill)
5) Taxborne letter from employer on company letterhead signifying that tax was borned by employee and not by companyyour company hr would know about this letter. They might have the format for the same. If they dont have let me know i will send you the format)
6) PCB II document(your employer will provide u this)
7) Appeal letter(you need to write a letter that you have completed consecutive 182 days in malaysia and appeal to amend ur case as an resident tax and process the refund for extra tax paid by you in 2014)
8) photocopy of marriage certificate and child birth certificate if you are claoming these exemptions.
9) passport bio page photocopy of ur wife and kid if claiming these exemptions.

That's weird - you may have been misinformed by an officer who is out of date - or have the tax office done a U-turn and not said anything? Can happen. Loss of face issues. Those are the old rules. Employers were told - and colleagues screwed (!) by the new rules that say that basically says you don't get back Nov/Dec 2014 as each year is a distinct tax year. You have to be in Malaysia on 1st July 2014 to qualify for a rebate as a resident taxpayer, Many HRs (clued up ones) have been saying this.

So is it wrong info you were given or yet another U-turn (maybe after so many companies complained)? Only time will tell.

No yhats the fact. Bcoz an philippines guy in our office claimed it last yar. So its true. so once i go in july for claiming Refund i will give an update on this.

No what he writes is theoretically correct. Once tax resident a person can claim back over-payment of tax (or wait for next tax filing) for the previous tax year. The years become linked once 182 days have been worked in the following year. This is very clear in the tax rules which are published everywhere.