taxes in Malaysia

Post Reply
malaysiabound
Posts: 4
Joined: Sun Apr 19, 2015 12:22 pm

taxes in Malaysia

Post by malaysiabound »

Hi,
Hoping someone can help me understand the tax situation in Malaysia. I've been told I have to spend 182 days out of a year there, straightforward enough... But the fine print? Does this have to be within a calendar year, or can it span September to February, for example? Is it in the first year only, or for every year of residence? What is the deal with the "no more than two weeks out of the country" bit? What about the exceptions I've been told might exist, like if you travel out of Malaysia for business, that doesn't count as being away? Different websites say or imply different things, and I'm thoroughly confused.
Appreciate any and all help!
MB
SuzieQ
Posts: 28
Joined: Thu Jan 16, 2014 5:31 pm

Re: taxes in Malaysia

Post by SuzieQ »

For income tax purposes there are two types of residence status, ‘resident’ or ‘non-resident’. If a person is a resident, any income received in or remitted to Malaysia is taxable at scale rates, whereas a non-resident is liable to Malaysian income tax only on income received from a Malaysia source at a flat rate of 26% (effective year of assessment 2010). The taxable year is the calender year.
Further information can be found on Inland Revenue Board Malaysia Public Ruling No. 6/2011.
malaysiabound
Posts: 4
Joined: Sun Apr 19, 2015 12:22 pm

Re: taxes in Malaysia

Post by malaysiabound »

Ok.
How do I become a resident? The taxable year is the calendar year, but can my residency clock start ticking in one year, and hit the 182 mark in another year, as is possible in other countries? Does anyone out there know how the fine print works, in your first year and subsequent years?
twoteachers
Posts: 120
Joined: Tue Dec 23, 2014 9:15 pm

Re: taxes in Malaysia

Post by twoteachers »

I, too am headed to Malaysia this summer. Didn't your school provide any information on this? My school sent me an employee handbook that had about 5 pages dedicated to the tax scenario and the ins and outs of the calendar for tax purposes.
dover2013
Posts: 65
Joined: Sun Dec 30, 2012 11:30 am

Re: taxes in Malaysia

Post by dover2013 »

Read this : http://www.hasil.gov.my/pdf/pdfam/PR6_2011.pdf

Or don't fret about it - because it isn't a big deal.
malaysiabound
Posts: 4
Joined: Sun Apr 19, 2015 12:22 pm

Re: taxes in Malaysia

Post by malaysiabound »

That's a great resource, thanks.
Anyone else have more? Would you be willing to share what the school gave you? I think mine is a bit younger and hasn't done this as much.
Thanks.
malaysiabound
Posts: 4
Joined: Sun Apr 19, 2015 12:22 pm

Re: taxes in Malaysia

Post by malaysiabound »

Is this the only topic in the world that PG won't post on? I feel unloved.
PsyGuy
Posts: 10793
Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

Reply

Post by PsyGuy »

@malaysiabound

It wasnt my intent to offend you, I simply found the previous posts addressed the issue and I agree with it, you are either a resident or a non-resident.
Post Reply