Tax Information for Non-resident KL expat

Expert Info

Posted by

on 26 Jan 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.)

Anonymous (not verified) on 30 Jan 2012 - 07:47

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.

Anonymous (not verified) on 30 Jan 2012 - 12:13

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.

Anonymous (not verified) on 9 Apr 2012 - 08:54

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

Anonymous (not verified) on 27 Apr 2012 - 07:53

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

Anonymous (not verified) on 29 May 2012 - 12:21

Hi Asen, Hope you are doing well. I have the same questions as you do. I am planning to move to Malaysia from India.My employer in Malaysia mentioned that 26% of my salary will be deducted as tax.They also mentioned that all the tax that I paid in the first 6 months will be refunded to me once I complete one year of stay in Malaysia. Can you please validate this statement given by my employer?Is the tax that I pay in the first 6 months totally refundable after one year? Please help. Thanks.

Anonymous (not verified) on 30 May 2012 - 09:39

Hi Once you have worked over the 182days you can receive a rebate from your taxes once you have submitted the tax form for the year end taxes Regards Geri Buck http://www.apexpointsolutions.com

Anonymous (not verified) on 1 Jun 2012 - 15:41

Hi Geri, Pls help .... I am a Singapore Citizen. Being offered a Mgmt post by a Malaysian IT company based in Cyberjaya. Total package MYR20k per mth / $240k per yr (excluding company car and lodging). Appreciate a professional advise on these : (1) my taxable income shall be $26k per yr / based on $240k @ 26% ? (2) still eligible for some relief e.g personal @ $9k. Any others that is applicable? (3) flexibility not mandatory to pay EPF ? (4) definitely will cross the 182days per yr which qualifies me as 'Resident Tax Rate'. some sources mentioned we qualify to reclaim paid taxes for first 6mths (after completing the 1st full year of employment). How is that so and what will be the estimated amount recoverable, based on above financial proposition. Many thanks LHM

Anonymous (not verified) on 31 Aug 2012 - 17:47

hello... I will start working in Malaysia from around mind of Sept. So I will hv resident status on around mid of May 2013. My quesions are - 1) Since the tax year is from Jan to Dec, would I be treated as non-resident again from Jan 2013 to June 2013 (regardless that I was living in Malaysia since Sep 2012). 2) Next, my employer told me that out of the first 183 days of non-residence, I can take maximum leave of 7 days (that I can stay out of Malaysia), and still retain the resident status. Is this true? Thanks in advance.

Anonymous (not verified) on 1 Sep 2012 - 06:02

Hi I am not a tax agent... if you require any advise you can either use our services where our Accountant will be able to assist you...

Anonymous (not verified) on 14 Sep 2012 - 00:38

Hi If you are hired as a self empoyed contractor - does the govt withhold their share up front on the payments received? If the project then carries on for 8 months then you will be deemed to be a resident? Is there a residency tax there as well. Once you have obtained your residency do you get a rebate of the tax withheld or a portion thereof? Thank you for any information I can receive on this matter

Anonymous (not verified) on 24 Oct 2012 - 11:20

hi Rajiv u can take 14 days leave & for year 2013 as u continue from 2012 u treat as residence of malaysia,but u should stay 31st dec & 1st jan here in malaysia.

Anonymous (not verified) on 25 Oct 2012 - 14:34

Hi Just take note that as long as you work more than 182 days in Malaysia you will receive a rebate from the tax office after your 1st year. All our expatriates working in our company have received their tax rebates.

Anonymous (not verified) on 25 Oct 2012 - 14:40

Hi once you work more than the 182 days and you have submitted your taxes for the end year financials... you will definitely receive a rebate..all our expatriates receive a cheque which is a substantial amount.. Regards Geri... email address is gbuck@apexpointsolutions.com

Anonymous (not verified) on 25 Nov 2012 - 02:41

Hi, My contract is getting closed shortly, and no of days worked in Malaysia will be 184 days. Can any one suggest me to get the refund before I leave Malaysia.

Anonymous (not verified) on 26 Jan 2013 - 16:49

If 182 days is complete then the 6 mos 26% upright tax is completed. Now is it also a condition NOT to exit within 1 year or if I had to exit after 6 mos will have effect on the tax?

Anonymous (not verified) on 27 Jan 2013 - 04:35

Hi, Is there any exemption for this 14 days visit outside Malaysia,i went to my country and returned on 14 th day in 2013 and in addition my company assigned me an 3 days work to a foreign country.is this 3 days will be added to my personnel visit..

Anonymous (not verified) on 28 Jan 2013 - 12:16

Hi Please take note that the 182 days should be in financial year. it cannot be split within two years. If you have work permit in Oct and you think you are safe within the 182 days you are not.. it will be considered only three months in that year and you will need to start the 182days again at the start of the new year.. so beware...

Anonymous (not verified) on 28 Jan 2013 - 12:17

Everyday is counted when you are in the country and everyday you are out is minus from your 182days..

Anonymous (not verified) on 29 Jan 2013 - 08:41

This is my wife's case: She had an offer to start working on Dec 2012. So definitely her stays <182 days in 2012 --> she has to pay non-resident tax rate of 26% for this month. She will stay in Malaysia for long term. So let's say 182 days count again by 2013, so by the time she stays > 182 days, her tax rate will follow resident tax. Is it changed automatically by the system? And is all the tax she pay follow non-resident tax rate for year 2012 n 2013 refundable? or just 2013? Thanks, I much appreciate all replies.

Anonymous (not verified) on 18 Mar 2013 - 08:01

Hi Kindly advise on the following matter; My company has just hired an expat. My question is who pays tax and how much? Employee or employer? My second question is can this employee register with EPF on the wage contribution and how much does the employer need to contribute? Lastly can the employer register with socso on contribution for expat?

Anonymous (not verified) on 16 Mar 2013 - 15:29

how to file 26% tax refund for non malaysian employees? I have completed my 182 stay in malaysia in dec2012? iam confused...

Anonymous (not verified) on 16 Mar 2013 - 15:30

how to file 26% tax refund for non malaysian employees? I have completed my 182 stay in malaysia in dec2012? iam confused...

Anonymous (not verified) on 17 Mar 2013 - 09:59

HI if you are on a long term contract after the 182 days your company should start to charge you a resident tax and only at the year end can you submit your tax forms and after that income tax will rebate to a cheque for the overpayment you have done. Your company needs to give you a form called EA form and then you complete your B form to submit to tax office. You require our services to sort your personal income tax, please contact me at gbuck@apexpointsolutions.com and we can handle your personal tax at a minimal cost. Regards Geri

Anonymous (not verified) on 17 Mar 2013 - 10:07

Hi Please contact me at gbuck@apexpointsolutions.com for us handle your year end taxes. We charge a very minimal cost and we have experience with Expatriate taxes. No point guessing what rebates or not you are will obtain from income tax.. let us assist you to assure you of your rebates. Regards Geri Buck

Anonymous (not verified) on 21 Mar 2013 - 01:04

I heard tax filing is in April and I had completed my 183 days way back December 2012. Should I complete the filing by April 1st week.. Are we to receive the refund by that month April too?

Anonymous (not verified) on 27 Mar 2013 - 15:32

you need to fill the BE form to get the refund. your company has to give you EA form, take that EA form and visit near by HASIL office. they will guide you. or they also come to your company.After filling you will be receiving the refund but in what time no idea...?

Anonymous (not verified) on 27 Mar 2013 - 15:35

Anonymous (not verified) on 26 Apr 2013 - 10:53

As per law, if any individual stays @ Malaysia for less then 60 days in financial year, his/her income will not be taxable.

Anonymous (not verified) on 14 Jun 2013 - 21:51

hi i will be reaching malaysia in October 2013, so i would pay 26% for the first 6 months (182 days )when will i get the refund for conversion from non resident to resident, is it when i file in 2014 or in 2015 please advice ?

Anonymous (not verified) on 8 Jul 2013 - 21:15

Hi Apex point, Basically I want to see if there is a way I can get a long term visa to live in Malaysia for myself and my family I will be not working be dealing with any of the companies in Malaysia. I will be working for my company in oversea (not registered in Malaysia) but be living in Malaysia. Please let me know how you can assist me.

Anonymous (not verified) on 25 Jul 2013 - 11:37

Hi, I am an expat, i joined a company in KL by OCT2012, but i failed to pay the non resident income tax before Apr2013, now i have received a letter to debit my account on 6 installments. After all the installments passed, can i still proceed to get rebate?

Anonymous (not verified) on 24 Sep 2013 - 05:11

Hi, I have missed to pay the non resident tax by april 2013 due to miscommunication, so i have been deducted by CP38, am i still eligible for refund? if yes when can i request for refund?

Anonymous (not verified) on 9 Oct 2013 - 10:15

hi i have arrived in october and want to what tax will be applied on my salary structure in this calender year 2013

Anonymous (not verified) on 5 Oct 2014 - 17:56

Hi, May I confirm a few issues,really appreciate if anyone can help me with. I have been attending training with a company in KL for 6 months. During this time I didn't pay any tax, I have allowance. After that I applied for a full time job at another company and I commenced my work 2 months later. My total days in Malaysia is more than 183 days in the same financial year. So in this case, I will not have to pay the flat rate 26% at my new job right? Thank you very much

Anonymous (not verified) on 30 Apr 2015 - 12:27

I want to work in Malaysia for 50days..my salary will be 13k. Does my income will be taxable? need help.. Thanks in Advance.

Tax Information for Non-resident KL expat

Expert Info

Expat Health Insurance

Cigna Global Health Insurance.

Moving Internationally?

International Movers. Get Quotes. Compare Prices.