Advertisement

Malaysia Tax Law

745 Views  ⚫  Asked 5 Years Ago
asked on Aug 23, 2012 at 22:21
by   Blue696
Hello All,

I am Indian,

I came to Malaysia on 15 July 2012.

Started working on 17 July 2012.

I have got a permanent Job and I will be staying here for more than 182 days.

Income Tax calculation happens from JAN 2012 to DEC 2012.

But my 182 days stay gets completed on JAN 2013.

1]Am I considered Resident or Non-Resident?

2] What is Income tax rate for me?

3] If I am charged 26% Tax rate considering stay less than 182 days for the year 2012, can I claim it back in next year showing my stay more than 182 days in 2013?
0 had this question
Me Too
0 favorites
Favorite
[ share ]
4 Answers

answered on Aug 30, 2012 at 16:09
by   Vilson
Assume that you will continue stay in Malaysia until 12 Jan 2013.
Therefore, you are resident under Paragraph 7(1)(b) of the ITA 1967 Or With Reference to Public Ruling No. 6/2011.

If an individual is in Malaysia in the basis year for a particular year of assessment for a period of less than 182 days but the period is linked by or to:
i) another period of 182 or more consecutive days throughout which he was in Malaysia in the basis year for the year of assessment preceding that particular year of assessment; or
ii) another period of 182 or more consecutive days throughout which he is in Malaysia in the basis year for the year of assessment immediately following that particular year of assessment
that individual qualifies as a resident in Malaysia for the basis year for that particular year of assessment.

In calculating the period of less than 182 days or the period of 182 days or more consecutive days, relaxation is given where the period of temporary absence (period during which an individual is not in
Malaysia) shall be taken to form part of that:
i) period of less than 182 days; and/or
ii) period of 182 days or more consecutively, provided that the individual must be in Malaysia immediately prior to and after that temporary absence.

Temporary absences allowed are –
i) absence which is connected with the individual’s service in Malaysia such as attending conferences or seminars or study abroad;
ii) absence owing to ill-health involving the individual or a member of his immediate family (immediate family means parent, spouse and children); and
iii) absence in respect of socials visits not exceeding 14 days in the aggregate (social visits include any form of vacation outside Malaysia besides vacation to home country).

The due date for submission of Form BE is on 30/04/13. Therefore, you alrady able to determine whether you have fullfill the condition as a resident.

The tax rate for a resident taxpayer are in scale rate.
0 found this helpful
Helpful

answered on May 21, 2014 at 22:38
by   MTAC
Hi in respect to the following:
Temporary absences allowed are –
i) absence which is connected with the individual’s service in Malaysia such as attending conferences or seminars or study abroad;
ii) absence owing to ill-health involving the individual or a member of his immediate family (immediate family means parent, spouse and children); and
iii) absence in respect of socials visits not exceeding 14 days in the aggregate (social visits include any form of vacation outside Malaysia besides vacation to home country).

Could you please explain 'besides vacation to home country' - does this mean I can have a vacation in my home country?
0 found this helpful
Helpful

answered on Jul 3, 2014 at 02:13
by   Nick
yes indeed . 'besides vacation to home country' means you can't have a vacation in your home country i.e. India
0 found this helpful
Helpful

answered on Nov 25, 2017 at 04:43
by   Grey
can I ask one question?
- if there is a question about visit spouse who was seriously ill outside Malaysia, but exceed 14 days. Is still counted as temporary absence?
0 found this helpful
Helpful

Your Answer





By posting your answer, you agree to the privacy policy and terms of service.