Non resident tax rate

Hi, I've been working in Malaysia on EP since January 2017 and will continue to 2018.
So far my salary was deducted 28% tax rate even after i completed 183 days present in Malaysia.
What should i do to let my employer know that i should be taxed resident rate instead of continue 28%.

Second question is regarding the absent of 14 days. May i know this 14 days absent is referring to total in a calendar year ? or is referring to each visit outside of Malaysia as long not more than 14 days ?
Meaning i can do multiple visit out of malaysia as long all this visit not more than 14 days each time ?

Thank you

Ask your employer to confirm your status with the tax office or their tax agent.

Breaking the day count to become tax resident happens if there is a personal leisure absence of more than 14 consecutive days.

You can visit nearest LHDN office and request them for resident letter that you have completed 183 days in Malaysia.

They will give letter that you are resident and completed 183 days. You need to send that letter to your HR and payroll department so next month on wards they will deducted resident tax.

With regards to 28% which they deducted don't worry when you fill your income tax in April attached PCB 2 form . LDHDN will refund your acess amount charged as tax.

With regards to 14 days if you have completed less than 183 days then stay more than 14 in back home will be considered as non resident. Once you complete 183 days you can go out and come in any time.

In case of emergency your company has to send to for projrct and stay is more than 14 days . Then during income tax filling company will provide letter to LHDN that you have travled for work purpose.

If still you have doubt better call LHDN on toll free number.

Here is the info from the tax office about how to get a Certificate of Residence  http://www.hasil.gov.my/bt_goindex.php? … p;bt_lgv=2

Hi, related to the tax deduction i have a query. For the first 183 days salary taxable salary can be calculated as

TAXABLE SALARY= (BASIC + RENTAL )-EPF

Or

TAXABLE SALARY= (BASIC + RENTAL ) and EPF on basic is deducted post deduction of Tax?

Thanks

Not sure about this because Tax is usually applied after EPF deductions and an allowance of RM6k per year of assessment for resident tax payers. You will need to ask your payroll people who will know the details.

Thanks Gravitas and expatind