Residential status for tax

Which company you work for? Might be can be tax as resident section 7(b) and I have provide submission of tax return service. In ya 2014 u have tax overpayment which havent refund from the IRD?

Hi,
I stepped in on july 15 2015 and company actually taxed me as resident for jun to Dec  2015. So now i am asked to file tax as non resident from tax officials and eventually i owe a huge amount to tax department.

I am OK to pay the amount but just looking for reclaim in year 2016 provided i fulfill the condition (which i am not clear how).

For ya 2015 (calender year 2015)  you have been filed (because the feadline for submission is end of april2016 and if you fullfil 182days or more than that in.year 2015, u are fulfill as tax resident this year. And can claim tax relief.

I dont understand because if you refer for this calender year 2016 it only will be submit in the following year 2017.

My email address is *** if u need further understanding I might be can send you the details

You must be careful. According to the tax office last year you cannot claim anything back from 2015 as not resident. So tough. Now many did claim baxk in simular circumstances a few years ago then suddenly the tax office changed its mind. Maybe they have again. It is the third world and "laws" change with the wind! But i know some big businesses who asked staff to start before 30th june due to this problem.

Can claim if overpaid, all my expatriate client able to get their refund. Unless u r tax repayable

Srineo,

You can claim your tax refund very easily even though bit time consuming once you attain your resident tax payer status in 2016.

It was very much similar  case for me in the year 2014. I came here in 2014 Sep and paid my taxes as non-resident 1st in year 2015.

Once I completed 182 days in 2015 in Malaysia (spread across 9 months), I went to HASIL office, submitted my passport copies and a form and got the resident tax payer certificate same day,

Once I got my resident certificate, I submitted a form for re-assessment for 2014. Though my re-assessment took 3 month but it can be done earlier if you visit more frequently to Hasil.

Once my re-assessment was done, I got my refund within a week upon submission of Tax Borne Letter.

As for not staying for continuous 182 days, there is no such requirement.
Condition is you must stay for 182 days in a year and that year must be connected to another year with difference of not more than 14 days. That means if you were in Malaysia in last 15 days of 2015 and 1st 15 days of 2016 you are safe. You can have your 182 days spread over 10 months as well. In my case too it was similar like yours.

Cheers

Hi ,

Thanks for making it clear . I do stayed in Malaysia last 2 weeks of Dec 2015 and first 2 weeks of Jan 2016. Since its not necessary be a continuous 182 days from jan to July  2016 , i will make sure 182 days aggregate in year 2016 ( may be from Jan to Oct ) and so i approach Tax Dept on Oct.

http://www.hasil.gov.my/pdf/pdfam/PR6_2011.pdf kindly refer this public ruling, very clear

If  linked to YA 2016 is more 182 days (i.e. year 2016 more than 182 days) meaning this coming tax submission (i.e. YA 2015) you may file as tax resident which can enjoy tax relief and scale tax rate.

Else not sure, you can tax as non-resident first (i.e. flat rate 25%), once you very confirm in Year 2016 is more than 182 days then you only revise YA 2015 tax computation in order to claim the tax over payment. However, will trigger IRB tax audit you and your resident status in Malaysia. Once audit finalised then only refund the over payment to you.

You refer to the public ruling and it's very clear and having a lots of example for you to refer. Wish make you more understand on it.
http://www.hasil.gov.my/pdf/pdfam/PR6_2011.pdf

for the refund one... nowadays IRB automatic refund within 3 months after the filing of tax return. No worries... unless you leave Malaysia then you need tax clearance letter from IRB. But actually depend on your assessment branch. You need to know which assessment branch that your personal tax file locate. cause about the refund normally is depend on which officer in-charged. Some officer will request a lots of document and might be conduct tax audit to you. Once find out there is no any non-compliance happen to you then IRB only will refund the money to you.

By the way which company you work for? if work for regional office... the tax treatment is totally different and may enjoy exemption if business travelling outside Malaysia.

http://www.hasil.gov.my/pdf/pdfam/PR2_2012.pdfhttp://www.hasil.gov.my/pdf/pdfam/PR8_2011.pdf
for your reference as well.

Thanks for your sharing that make me learn alots.

Hi could you contact me ?. Looking someone for payroll administration ***

Hi yes. May i know the job scope? you looking for part time or full time?

@jdomingo

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If I decide to retire in Malaysia without working and bring my money from USA for expenses, then I dont have to pay tax or file return. Is that correct?

Hi
Can you advise what happened?

I have a case of similar nature.

Joined a firm in Malaysia around 15th Oct 2016.
Took annual leave from 22nd June 2017 till 9th July 2017 and i expect to be in Malaysia for the remaining year without any leaves (planned - cud be job related travels).

my case looks like below:

Date of Joining firm in KL                         15-Oct-16
Fiscal Year end                                          31-Dec-16
Days in Malaysia during 2016                  77

Continue in 2017 (no break)                  1-Jan-17
Annual leave start date                          22-Jun-17
continuity in 2017                                  172
return from leave                                   9-Jul-17
leave gap in 2017                                           17
Expect to be in Malaysia till                    31-Dec-17
Physical days in Malaysia 2017              347


Can you advise if I am a resident for tax year 2016 and 2017 both now?

Regards
Ali

This explains http://lampiran.hasil.gov.my/pdf/pdfam/PR6_2011.pdf

I think this applies to you for 2016

6.2 In Malaysia for less than 182 days in a basis year
[Paragraph 7(1)(b) of the ITA 1967]

6.2.1 If an individual is in Malaysia in the basis year for a particular year
of assessment for a period of less than 182 days BUT the period is
linked by or to:

2017:
ii) another period of 182 or more consecutive days throughout
which he is in Malaysia in the basis year for the year of
assessment immediately following that particular year of
assessment

that individual qualifies as a resident in Malaysia for the basis year
for that particular year of assessment.

THEREFORE you failed on ii) because you did not achieve CONSECUTIVE DAYS in 2017. That will mean 2016 will be taxed as non-resident, but you will be taxed at resident for 2017.

what can i do now to make 2016 status as Resident from Tax perspective?