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Income Tax questions from a Foreigner

mikesaddi

Hi everyone, my name is Mike and I am from the Philippines. I currently work in Manila but have accepted a job offer to work for a Software Development company in KL and am looking to move to Malaysia around July 2018. I have a few questions regarding income tax and refunds.

1. How long will the flat 28% income tax rate be applicable to me?

2. How does one fall under the resident tax rate? Does that automatically happen after 182 days of working in Malaysia, or is their paperwork that needs to be filed by the Employee/Employer?

3. Once I do become applicable for the resident tax rate, will I be eligible for tax refund from the 28% I paid from the previous 182 days? For example, if my tax rate was supposed to be twelve percent, do I get back the 16%?

Thanks in advance

See also

The tax system in MalaysiaTaxes for °µÍø½ûÇøs in MalaysiaSwiss pension in MalaysiaMalaysia Income Tax°µÍø½ûÇø living in another country while doing the Malaysian job remotely
Gravitas

1. For 182 days in 2018. If that is not possible because of your start date then continues for 182 days in 2019.

2. After 182 days apply for residents certificate from the tax office

3. If 182 days was possible in 2018 then any overpayment is refunded when annual tax return for 2018 is submitted by April 2019.

4. If 182 days was not possible in 2018 as long as there are no more than 14 days personal absences during first 182 days of 2019 the years 2018 and 2019 can be linked. Any overpayment is refunded  via the 2019 tax return or leaving employment/country permanently

mikesaddi

Thanks Gravitas! You are basically the °µÍø½ûÇø MY forum helpline :) If they aren't paying you, they should start

Mandeep mann

This is just to enquire that if I have visitor visa and want to apply for work permit here in Malaysia what to do? Can I directly go to embassy to put my application ?

Gravitas

Only the employer who offers you a job can apply for a work permit. No personal applications. Beware of overstaying on tourist visas as it can lead to deportation and ban on reentering Malaysia.

Also there are companies who cheat foreign workers by not paying their wages, taking their passports and never getting them a work permit.

For your protection - This is why the rule for Indian workers (and various other nationals) is they MUST report for their job ONLY by first getting a special Single Entry Visa (called a VDR locally). The VDR is obtained in either Chennai, Mumbai or Delhi Malaysian consulate/HC.

Without this type of entry it is impossible to get the work permit endorsed (regardless what the rogue employer may tell you).

So if you get a job offer you need to leave the country whilst the application is being processed.

Truc.van

Hi ,can you help me
1. When will they start to calculate 182 days. Will be the firs date i stayed in Malaysia(15March18) or the first date i start  working (26March18).
And the last date will be the last of my working date (18Oct) or the date i do clearing tax

2. I travel out of Malaysia 3 time , total is 22 days for 3 time , will they deduce 22 days  or not because each time is less than 14days.

3. If until  the last of my working date i stayed in Malaysia 185 days( already deduce 22 travel days ) will they charge me the resident tax. I dont know if i have to apply for the COR  or not , cus i have to clear my tax few week before my last date of work ( if like that , that time i not 182 days to apply for COR)

Thanks

write2pavan

Hi Gravitas,

If I am joining within 182 days of the taxing time in the year, will there be deduction of tax in my salary?

For example: My joining date is 01 September, 2018. There are only 122 days left for 2018 year's completion. So, for all these left out months will there be any deduction of tax in my salary?

Thanks,
Pavan Singh

Gravitas

Pavan - income tax is always deducted (the law states that the employer must deduct income tax from each monthly salary payment).

The question is whether its at the non-resident rate of 28% or the resident rates.

From 1 September to 31 December you will be deducted 28%

From 1 January to about 2 July 2019 you will also be deducted 28%

aly0003

Hello,

If we will not apply for resident status in Hasil then our tax will still 28% deduction?

I am sam situation with him. I am here Nov 2018 and still working here with same company. I just finished my 182 days this July.
Can I refund my tax for 2018 now?
How can I file or refund it?
Should I go to Hasil office and refund by myself?
What are documents needed?
How long will it take to refund 2018 tax?