Tax Clearance for PVP holder working for overseas company

PVP there should be no tax implications in Malaysia as payment is made by the offshore company and income ex-Malaysia is non taxable.

Remind them you are not on an Employment Pass.

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

On a PVP you shouldn't even have a Malaysian tax number so clearance is impossible.

Thanks for the clarification. This makes more sense to me. The HR doing these for the Malaysia company doesn't seems very clear about these procedures as well, so I want to make sure before I write back to them.

To update, the HR of the Malaysia company replied to me that since the company is the sponsor of the PVP, the PVP holder (me) will have a tax filing obligation. Even thought I will be exempted from tax, there is still a need to submit my income tax returns. How true is this?

What Malaysian income will be reported? Perhaps they could identify what you are paid by the Malaysian subsidiary that is taxable?  Otherwise I would have thought the only other money matter was internal between your home employer and local subsidiary (and that would not involve personal income tax). You continue to be taxed in home country? It would be strange to get into a Double Taxation situation for a one month loan of expertise. Perhaps the HR can also provide you with a note of your Malaysian tax ID which would be needed to do tax clearance.

Sorry for the late reply.

There will be extra income (oversea allowance) earned for this assignment, but it will still be paid to me by my parent company and not from Malaysia. Of course, my yearly income including this allowance will be declared and taxable in my home country. Other than that, I don't have any individual gains from this assignment and all money matters is through the Malaysia company to my parent company. 

So don't think any Malaysia income will be reported as there aren't any to begin with. However, their stand is that even if there is no taxable income, a submission still has to be done. (maybe just submit a form with zero total income).

To make things more complicated, I have to fully authorise an agent to make the declaration of the income on my behalf, which then gave me additional concerns because I will not know what will be declared on my behalf and I can't verify if the declaration is correct.