Income tax related - 14 days outside Malaysia

Hi,

I am staying in Malaysia since March 2017. I am a student and I entered Malaysia with student pass. Along with studies I am working also and having employment pass. My employer says I need to be in Malaysia for 182 days and cannot go outside of Malaysia for more than 14 days.

My question:
What exact is this 14 days tax rule?
Is there any special provisions for 14 days - like can I visit India more than 14 days in festival seasons or on medical grounds?

Raju

Page 6
https://www.pwc.com/my/en/assets/public … ooklet.pdf

Thanks Gravitas for quick response. I have gone through page 6. So it says, I shouldn't be outside Malaysia for more than 14 days. I believe this document is authentic (as its not a government document but from PWC).

One more question, if I leave Malaysia on 15th July (before midnight 12) and return to Malaysia on 21st July's morning, will it be counted as 5 days or 7 days (for calculating 14 days)?

Raju

You can be outside Malaysia on business trips for any length of time and for health treatment. You just can't break your qualifying period by going on a personal trip or long holiday. The tax office has to set a limit in order to have some control over the 182 day qualifying period. Therefore they decided that the limit is 14 days for social reasons. Of course, when linking two years i.e. 2017 and 2018 this rule will apply to both years.. As soon as you become Tax Resident you can then take any absences you want because the qualification has been achieved once and for all.

But you will qualify in 2017 for tax residency if your work permit started in March 2017 (i.e. your salary started to be paid and tax was deducted..... Or if you are only now starting work, then yes, it is not possible to achieve 182 days between July and December. Your tax record guides the process.

Hi Gravitas,

Greetings.

Thanks again for the detailed information.

I started my work from June 2017, so when would 182 days qualify? Is it Sept 2017 or Nov 2017 (I arrived in Malaysia in last week of Mar 2017)?

One more query related to tax, my employer is asking me to take care of the tax all by my self. How should I start the taxation process?

Regards,
Raju

182 days is about 6 months. Check if you have to pay tax http://lampiran2.hasil.gov.my/pdf/pdfam/01_2017_2.pdf

Hi,
I need an immediate help. If I want to travel outside Malaysia ( I am an Indian) for less than 14 days before 182 days of my stay in Malaysia. Will I still be taxed at 28 percent during year end?

Hi Gravitas,

Can u pls help me understand tax calculation & tax linking for my case as below,

1) I have started working in Malaysia from Aug15,2019, so i would not be able to complete 182 days hence from Aug'2019 to Dec2019 my tax deducted would be 28% right ?
2) Is it okay for me to take more than 14 days leave (example : 7 days in Oct 2019 + 10 days in December) = Total 17 days since by any ways I would not able to complete 182 days criteria and become tax resident for 2019 ?
3) From Jan'2020 until completion of 182 days around July 2020 would I still be taxed at 28% again ?
4) Also from Jan'2020 until 182 days completion around July2020 if I take less than 14 days, I would become a tax resident for 2020 right ?
5) Will I still be able to link tax years 2019 (with more than 14 days outside Malaysia in 2019) & year 2020 in which I have attained tax resident ?
5) After I have become tax resident in 2020 (stayed greatest than 182 days in 2020), can I take leaves more than 14 days or do I still need to keep mind of not exceeding 14 days even after becoming tax resident ?
5) Also, if years 2019 & 2020 can be linked then I would need to file return around Apr2021 or will need to claim my returns if I leave Malaysia permanently in 2020 let's say Nov'2020 right (In this case would my overpaid tax in 2019 be claimed back) ?

Really appreciate all your replies and Thanks in Advance !!