Tax Calculation

Dear Gravitas

I am stilll confused even after going through many posts regarding the tax status. I was given a 1 month employment visa which i had to get it attested within 1 month.

I initially entered into Malaysia on 20th June 2019 and then 1 year EP was issued on 27th June 2018.

I went to India on business travel twice during 2018, and once it was 4 days in september and again in december for 12 days. a total of 16 days. Both were business travels.

Will i be eligible to become resident starting January 2019.

This is very important for me as i am applying for Tax Clearance and moving back to India next month.

Truly appreciate your response at the earliest

Sachin

Based on the information you have given, you are resident for 2018 and should also be for 2019 but must get a letter from your HR confirming your travel was business related and not holiday to show LHDN when you do your clearance.

You should have done a tax return for 2018 already using BE Form. Take a copy of this with you plus copy of your passport.

Thanks Gravitas

This really helps. The HR is applying on my behalf for the income tax clearance.

I have traeled many times to India in 2019, however, many are business trips, do you suggest i request my HR to attach a letter stating these trips were Business trips as well?

Best Regards,

Sachin

You do need confirmation of the purpose of all your travels outside Malaysia when doing tax clearance. The letter is attached to the form the tax office has in lieu of filling that form. The problem you now raised is whether 2019 can be linked to 2018 because you didn't mention travel in 2019. So you might be non-resident for 2019. You need to link 2019 to a period of 182 days. Your December absence dates may therefore be relevant. So worse case scenario is you pay 28% tax for 2019 earnings