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Tax Information for Non-resident KL expat


ASen's picture
By ASen - Posted on
26 January 2012
Hi- I don't seem to have a clear idea about the tax slabs in Malaysia. I am looking to move to KL from India. Is my understanding that tax levy will be outright 26% on the salary amount, correct? Also does the salary structure in Malaysia accomodate any tax-free components(housing allowance,travel etc.)
Stephanie's picture
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Last seen: 5 weeks 4 days ago
Joined: 04/19/2010

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Cape Town, South Africa

From:
Charlotte, North Carolina (the USA)

Stephanie's Website
The first thing you have to understand about tax slabs in Malaysia, is that there are different rules for residents and non-residents. A tax resident of Malaysia is someone who is in the country for 182 days in a financial year. This does not have anything to do with your nationality or your citizenship. Thus if you move to Malaysia, and are there for more than 182 days, then you will be considered a resident. If you are there for less than this, you will be a non-resident.

Non-residents are taxed at a flat rate of 28 percent. However, residents are taxed according to a progressive scale. Meaning, the more you make, the more you'll be taxed. To see an example of how much you'll need to pay according to your income - visit the Malaysian revenue services site.
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ASen's picture
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Last seen: 16 weeks 2 hours ago
Joined: 01/26/2012

Hi Stephanie-

Much appreciated for your feedback. I understand now the tax slab basis for 182 days resident/non-resident individuals.

I will look through the link more throughly.

I also wanted to check if the tax that is applicable for the first 182 days is refundable/non-refundable/adjusted with the progressive tax slab that comes into play after 182 days. This is for staying continuosly beyond 182 days.

Thank you very much for yourinfo.

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apexpoint's picture
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Last seen: 2 weeks 5 days ago
Joined: 04/09/2012

Hi

If you have any issues with obtaining your work permit.. we are happy to work with you on this. We will also advise you on your taxes etc. It is quite daunting to apply for work permit in Malaysia... please contact us at gbuck@apexpointsolutions.com or check out our website : http://www.apexpointsolutions.com.
Regards
Geri

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Anonymous
Anonymous's picture

if i stayed in Malaysia for more than 182 days, how i can claim back my paid 26% tax amount from income tax dept

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