182 days (6 Months) mandatory stay in Malaysia for high Tax waiver

If you exit the country, then the 182 days starts again.  I got caught in my first year in Malaysia.

so does that means - if reach Malaysia in May, 2021 and then I leave Malaysia on June for 10 days only. 

Come back again to Malaysia.

so those 182 days will start from July 2021 ? and then if stayed for 182 days I don't have to pay 26% tax ?

The simple answer is Total 182 days per year.

rajatcse is right,
Just complete 182 days in a year no need to be continuous.
Secondly if you are resident in next year , you can claim last year tax refund based on resident slab.
Dont worry if you are paying 26 percent this year.

Thanks for your response and help

You can find the rules here:

http://phl.hasil.gov.my/pdf/pdfam/individual.pdf

If you don't meet the 182 days criteria in 2021, it will roll over to 2022, e.g. you arrive in August (5 months in 2021), you will be come a tax resident in February 2022 provided that you don't leave Malaysia for longer than 14 days (temporary absence). If you do leave Malaysia for a longer period those days spent outside will not count towards your tax residency.

Once you reach your 182 days you can go to the tax office (Hasil), where your company is registered and ask for an adjustment of your taxes paid in Malaysia for the previous year, as you should now be considered a tax resident.

Make sure you keep a file of your days in/out of Malaysia and corresponding passport stamps.

@micern Hi just to make sure, if 04 February 22 we converted to tax residence and after that we go travel outside Malaysia on 13 February 22 - 28 februari 2023 (more than 14days), are we still eligible as tax residence because we travel after 182 days from 05 august 2021 - 04Feb 22, thanks

Yes, but you should go to Lembaga Hasil to get confirmation/certificate, if you have any concerns.

@micern

I was going through your post. I joined in 22 July 2023 in malaysia and my exit is 15 March 2024. Will I be able to claim exemption or I need to spend 182 days in 2024 and then only I can claim for 2023?

@ssharma0124

If you are leaving for good in March 2024, you will not be considered a tax resident in 2023 nor in 2024, as you have been residing in Malaysia for less than 182 days in both years.

@micern

Thanks @micern. Just one follow up query, If I stay 90 days in 2024 and already stayed for more than 90 days, will I be able to get tax exemption?

I doubt it. As I read it, you have to be a tax resident in 3 of 4 years preceding the year with 90 days, for it to apply.

You will not achieve tax residency based on the information have provided, but better to clarify with Hasil.

@micern

I am on a De Rantau (DIgital Nomad Visa) which is 1 year & then can renew for 1 year (we arrived on Dec 5th 2023, to the 1st year is complete on 5th Dec 2024 this year)

I would like to then stay longer in Malaysia with my family - using this year to figure out what options we have

For De Rantau Visa:

1) Any idea what the tax situation is?

2) If we stay the 182 days on this visa & then the Visa changes - do you think we can carry it forward?

Thanks,

Tom

    @micern
I am on a De Rantau (DIgital Nomad Visa) which is 1 year & then can renew for 1 year (we arrived on Dec 5th 2023, to the 1st year is complete on 5th Dec 2024 this year)

I would like to then stay longer in Malaysia with my family - using this year to figure out what options we have
For De Rantau Visa:

1) Any idea what the tax situation is?
2) If we stay the 182 days on this visa & then the Visa changes - do you think we can carry it forward?
Thanks,
Tom
   

    -@tomsanderson80

Hi Tom,

Welcome to Malaysia.

I am not an expert on this, so I would advise you to contact Hasil Careline at 03-8911 1000 or visit their offices. They are usually very helpful.

As a digital nomad, if might depend on where your source of income is. If Malaysia, you would pay 'normal' tax once you become a tax resident (30% until then), but if source of income is outside Malaysia, you may not be liable to taxation here (but likely at origin country).

Your tax residence status should carry forward, even if your visa status change. So, if you are a tax resident you would also be a tax resident on a new employment pass.

See if this helps? https://mdec.my/static/pdf/derantau/DE% … 202023.pdf (page 8)

If you contact Hasil, do post your findings here

Cheers,

Michael

@micern

Hi Michael,

Great shout thanks

I have already emailed Hasil a couple weeks ago & followed up earlier today

I'll give them a call if nothing soon

(I find it's sometimes better to get some parts in writing if possible)

Will update here my findings

thanks for being a good sport!

Tom