Determination of Residence Status for Foreigner

You couldnt qualify to be Tax Resident for tax year 2017 because you were not working in Malaysia for 182 days. You only arrived in August so it was already impossible because there were not enough days left in the tax year to qualify.

Each tax year (January to December) is calculated separately. So beginning January 2018 you start to count your 182 "consecutive days" in Malaysia to become Tax Resident.

You say you have taken "9.Jan.2018 i have 6 days social visit, then the last social visit is on 2.Mar.2018 for 3 days." So it seems like the total in tax year 2018 is only 9 days. This means you can link tax year 2017 to tax year 2018 (because you have taken less than the maximum allowed which is 14 days)

Your qualifying date will not be 2 July 2018 (which is approximately the 182nd day in 2018) because you delayed the qualifying date by 9 days as you were outside Malaysia. You need to reach 182 days inside Malaysia.  So the date you qualified as Tax Resident would be 11 July 2018 (i.e. an extra 9 days).

As you have linked tax year 2017 and also become Tax Resident in July 2018, you will receive a refund of overpaid tax for BOTH years. The tax office RECALCULATE your taxes retroactively at the Tax Resident rates (instead of 28%) and you get a refund. You should also since August payroll be paying lower tax at the Tax Resident rates.

Gravitas wrote:

As you have linked tax year 2017 and also become Tax Resident in July 2018, you will receive a refund of overpaid tax for BOTH years. The tax office RECALCULATE your taxes retroactively at the Tax Resident rates (instead of 28%) and you get a refund. You should also since August payroll be paying lower tax at the Tax Resident rates.

Hi Gravitas,

Thanks for explaination, maybe my understanding about the linked period is not like yours, please approve the Image and Link address then you can have a look on my total situation.

Because in the example 8 (page 13/26) they explained that the linked period calculated from the last social visit of previous year.

thanks.
Robin

I think you don't understand the example. There is only one way to link tax years.

Gravitas wrote:

I think you don't understand the example. There is only one way to link tax years.

Hi Gravitas,

According to the PUBLIC RULING NO. 11/2017, if you go to the example 9 and 10, they also including the social visit from the previous year. Maybe they just changed the rule since last year?

thanks.

The Example 9 is about not linking tax years because there were 20 days taken and it was across 2 tax years. If the person had been in Malaysia on say 1st January 2017 and then left again to take more leave, the situation would be different. Example 8 shows the difference the one day in Malaysia makes, compared to Example 9. The point is "was in Malaysia before and after the temporary absence"

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

However, the Note on Example 10 is important

Gravitas wrote:

However, the Note on Example 10 is important

hi Gravitas,

That Note also make my confuse about the linked period. Because if I have already 14 days social visit even in previous year, i will not eligible to get Resident status in year of 2017. That is reason why I post this thread. Not sure they are get the social visit from my first visit on previous year or that last visit..

thanks.

hi Gravitas,

That Note also make my confuse about the linked period. Because if I have already 14 days social visit even in previous year, i will not eligible to get Resident status in year of 2017 (IF I have any more day social visit on the date from Jan to Jun of 2018). That is reason why I post this thread. Not sure they are get the social visit from my first visit on previous year or that last visit..

thanks.

You could go to LHDN to get your Certificate of Residence (COR) for 2018 if you are in doubt. You need your passport (and a copy of all pages) and a list of all your absences (to fill out their form). The tax officer will confirm if you can link the tax years.

The form:

http://lampiran1.hasil.gov.my/pdf/pdfbo … f554d394a4