Paying TAX for Expat in Malaysia

Hi,

i started to work in Malaysia 7th August 2017,

Since i stayed in malaysia less than 183 days in 2017,
it means i considered as non resident right?
which is i have to pay tax 28% of my annual income.

but every month my company didn't deduct my salary at all,
once i asked my HR, they say they assume me as resident tax rate.
Upon my resigned, they will request me to perform tax clearance.
By then when i submit all your tax documents, income tax officer will check thoroughly from the day i came in Malaysia.


Any of the years found that you shall fall under non-resident tax rate, they will charge you on the difference of tax to pay.


My question is.


1.Is it really okay if i following my HR  Suggestion by submit my e-Filling for this year as Resident status first?

2. Is it correct if i stay for 183 days in 2018, then i will be considered as resident for Tax 2017, which is mean i dont need to pay 28%?

1. No your HR is incorrect. You should file your tax return using the M form as a non-resident
http://www.hasil.gov.my/bt_goindex.php? … mit=Search

2. If you stay in Malaysia for 182 consecutive days from Jan-July 2018 (with no more than a cumulative absence for personal reasons of 14 days i.e. holiday) it will link 2017 to 2018.  Retrospectively, i.e. when you submit your tax return for 2018, any under/over payment of tax will be worked out.

It's best not to delay paying tax, as fines are levied. Even if your HR is misinformed its best to act prudently yourself.

Gravitas wrote:

2. If you stay in Malaysia for 182 consecutive days from Jan-July 2018 (with no more than a cumulative absence for personal reasons of 14 days i.e. holiday) it will link 2017 to 2018.  Retrospectively, i.e. when you submit your tax return for 2018, any under/over payment of tax will be worked out..


1 .For 14 days absence rule,
if i traveled out from Malaysia at 15th Jan, and go back in 17th Jan. how many days they will deduct my absence? 1 day or 2 days?

2. if i traveled out from malaysia in last dec 2017, is it also deduct my 14 days entitlement in 2018? or in 2018 it restarted become 14 days again?

1. Page 3 explains http://lampiran1.hasil.gov.my/pdf/pdfam/PR6_2011.pdf "5.3 An individual is considered to be physically present in Malaysia for a whole day although he is present in Malaysia for part(s) of a day. "

2.  Travel in 2017 does not have any effect on the 14 day count.

One thing to be clear about is that any holiday absences do extend the time required to qualify as tax resident e.g. if a person takes 9 days away, then their qualifying period is 182+9 days.

Page 3 explains - http://lampiran1.hasil.gov.my/pdf/pdfam/PR6_2011.pdf (Updated above)

Ohh,
based on document u gave,
it means if i went out from malaysia from 15th untill 17th, i only considered leaving malaysia for 1 day right?
coz at 15th and 17th i'm remain in Malaysia.



Thank u so much Gravitas!