Help a newbie about tax

Tax years in Malaysia are 1st January to 31st December.

Starting work on September 19th means you cannot become tax resident for 2018 as you will be working fewer than 182 days here during the tax year. Taking 2 days holiday will not affect anything, because you cannot reach 182 days in tax year 2018.

What is important is the "14 day rule". So while you are qualifying as tax resident for 2019, it's advisable not to take more than 14 days holidays between Jan-July.

If you do take some holidays in 2019 and its under 14 days in total, then tax year 2018 can be "linked" to tax year 2019. This will mean that retrospectively 2018 will be taxed on the tax-resident basis and not at the flat rate of 28%. Any overpayment of income tax for 2018 is refunded (i.e. the refund is the difference between 28% paid and the tax-resident rates)

Do note that any holidays in 2019 are ADDED to the 182 days to qualify as tax resident. So to find your new qualifying date: e.g. 182 days + 7 days holiday outside Malaysia = 189 days required to become tax resident.

So you will pay 28% flat rate 19 September to 31 December but with the possibility to link 2018 to 2019 by not breaking the 14 day rule.

The penalty for breaking the "14 day rule" is that tax year 2018 cannot be linked to tax year 2019. There would therefore be no refund for tax year 2018.

https://www.pwc.com/my/en/publications/ … oklet.html