Salary Tax

This should explain

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

Basically 28% for first 182 days (non-resident)
Switch to resident rates (progressive scale i.e. just high part of salary is more heavily taxed)

Projections

10,000
non-resident rate 2800 per month
resident rate c. 1500 per month

15,000
non resident rate 4200 per month
resident rate c. 2300 per month

tax is viewed on the basis of the tax year (Jan-Dec) so once a person is tax resident, retrospectively the tax payable would just be the tax-resident progressive rate. Tax is always deducted each month and any overpayment is sorted out when the Tax Return is submitted annually in April each year, or on terminating employment and leaving Malaysia.

Do check your offer regarding Pension payments

If you are going to work for a group or sister company that has an office in Malaysia you may be on a Professional Visit Pass, in which case your salary should continue to be paid by your current national office (with sometimes a local COL supplement).  It's like a secondment rather than a local Malaysian employment EP contract.

Thanks my salary will be RM 14K so does it means first 6 months will be reduction of 28% and from 7th month how many percentage of reduction ?

I've given you the rate for 15k and 10k so you can work that out. 

It's a progressive rate tax system so higher earnings attract higher % just on that portion

This will probably explain https://www.pwc.com/my/en/assets/public … ooklet.pdf (Page 7)

Resident rate tax has a tax-free allowance which is RM9k per annum. This has been taken into account in the figures above.

Non-resident rate is flat rate with no tax-free allowance.

The overall annual tax deduction is equalised over the tax year Jan-Dec. when moving from NR to R status and any refund of overpayment is made after annual tax return is completed by employee in April 2019 (and annually thereafter)

Hi Gravita
I have offer letter from Malaysian company's and they ask me for wait to get approval from immigration of Malaysia once I get employment pass I will have to obtain single entry Visa to enter in Malaysia. Now my quasion is can I go to Malaysia on visiting Visa and while I am there I get employment pass and I can start work officially without leaving country?

My next quasion is can I go to Malaysia with my family on visiting Visa and get approval of employment pass and dependable pass while we are in Malaysia?  Can we change Visa status from visiting to employment pass and dependable Visa without leaving Malaysia?

You need a Visa Approval Letter and a VDR (visa with reference) before you can enter for employment. The VDR is issued by your local Malaysian consulate pre-departure

All visa-nationals need a VDR.

Check what documents would be required for the DPs, as these may be time-consuming to obtain.

https://esd.imi.gov.my/portal/pdf/TC-ES … r-2017.pdf

Hi I whould like to ask when I start work in Malaysia and having employment pass and I bring my family on visiting Visa

Can I change status for my family from visiting Visa to dependable pass while they are in Malaysia?

Ask your employer to process these now. Once your EP is approved it will be only 2-3 days for approvals for your family members.

It is best to get your employer to make the application for their passes now, before you all move. The tourist visa is only 15 days valid. They would arrive on a VDR like you will i.e. single entry visa from Malaysian consulate overseas.

There are quite high requirements for the type of paperwork needed so best to sort this out carefully. Every ID document needs authenticating from Indian authorities

Thanks , can you please tell me how many days we can stay in home country after getting single entry visa for myself (EP) approval & my famlly (DP) approval? Can we stay around 28 days in home country and fly to Malaysia ?

I think the VDR once stamped in the passport is valid for 6 months.

What is VDR ?