Requesting Suggestion in deciding job offer in malaysia - penang

The 26%/25% non resident tax is only for periods during a Jan-Dec period where you spend less than 182 days in the country. The normal tax rates on annual salary are:

                                2014                                                   2015
0-5,000                    0%                                                       0%
5,001-10,000           2% (RM100)             5,000-10,000      1%
10,001-20,000         2% (RM100)             10,001-20,000    1%
20,001-35,000         6% (RM300)             20,001-35,000    5%
35,001-50,000       11% (RM1,200)          35,001-50,000   10%
50,001-70,000       19% (RM2,850)          50,001-70,000   16%
70,001-100,000     24% (RM6,650)         70,001-100,000   21%
Exceeding 100k     26%                          100,001-250,000  24%
                                                               250,001-400,000  24.5%
                                                            Exceeding 400 000  25%

NOTE: Non-resident individuals are subject to income tax at a fixed rate of 25%, reduced by 1% from current 26%.

NOTE: If a foreigner leaves the country for social purposes for more than 14 days, the clock starts from Day 1 again and the person has to achieve 182 days. So be careful about your holiday absences.

Good offer on Penang Island. Many Indian workers living there. Your budget sounds reasonable as well. Nothing much more to say to respond to your posting.  Flat sharing available at your suggested budget.  More expensive if you want your own place. Expect to pay about RM1800 give or take. Internet package will be about RM200 per month but sometimes there are download limits. You have not put a cost for your mobile phone. That can vary from RM10 - RM300 per month depending what you do with your phone. Employers dont have to pay foreigner EPF (basically the retirement pension) but you should save yourself to counteract the lack of any contributions from your Malaysian employer.  Suggest RM1000-1500 would be a good figure. Unlikely you can rent a bike and anyway the roads are far too dangerious for pedaling around. Motorbike perhaps, but you will have an expense to change your license and a bit of aggravation doing to. Best before you leave India to get your driving licence attested to say it is not a fake, as that is required in Malaysia. i.e. the government office in India that handles licenses or a notary public should provide proof of your driving status. I think you should add an entertainment fund so you dont go crazy. Suggest that should be about RM1k per month. You can use it for travel, entertainment, eating out, socialising and generally enjoying yourself.  You will need hospitalisation insurance. Malaysian employers are supposed to offer this as part of the terms of employment. Check this out as an unexpected accident can bankrupt you.

Penang is rather boring, so be prepared to spend lots of time at home reading books. So you may need to subscribe to additional TV channels so you have something to watch. Add about RM100 per month for that.

Thanks for the reply.
I am not clear on the tax deduction.
My annual gross salary is  11000 *12 = 132000RM.My employer told that first 100000RM is non-taxable and only remaining 32000RM is taxed and it falls under 6% tax slab.Is it the case really in Malaysia?


regards,
Raj

They are misleading you

Take a look at this:  Its is official information:

http://www.mia.org.my/new/psp_taxation_ … amp;id=945http://www.hasil.org.my/goindex.php?kum … mp;sequ=11

Personal tax free allowance when tax resident is RM9000 per annum.

If you have been asked to pay anything, e.g. or visa processing, training or accommodation, then it could be a job scam.  The company should know the income tax situation as it is well publicised.

Hi in my experience many companies have no idea about recent tax changes. Many are learning fast though.

Penang can be very expensive to live in as lots of expats buying properties. But cheaper places are around still but must be knock on effect. With a low budget standard will be poor. Hardly a great offer but reflects current recruitment trends. If you are the homely type ok. Bear in mind I meet a lot of Indian workers with grand plans to freelance to "rake it in and save" who end up working 18hrs a day 6-7 days a week.

There is no requirement for companies to contribute to EPF for foreign employees. That really sends the message that a company does not feel responsible for the non-Malaysian employees. There is just a requirement to make a nominal contribution on behalf of the employer. Therefore it is essential to build in a personal pension contribution as part of the salary negotiation in the form of structured savings.

Your tax would be roughly between 800- 1200. Refer to gravitas table to calculate the exact figure.The slab system applies in India too, so you should be able to calculate.

Refer to iproperty.com to get an estimate of housing expenses.

Thanks all for the replies!!
My wife is working it IT field for 3 years.I would like to know if she can work in Penang,Malaysia, if she comes in dependent visa.
Is it easier to get sponsor/Employer in Malaysia?
Can some one point out how difficult it is and what are the procedures involved?


regards,
Raj

Hey Raj,

Well as stated earlier by Gravitas, your Tax will be 26% flat if you come within this December.
There are a lot of confusion regarding Tax calculation which I see in all the post, anyways, to be brief , your employers claim of 6% is bogus.. I leave it to experts and the table given by Gravitas or we can take up the Tax discussion later.

Before beginning, I work in the same location and stay near this area, so thought of advising you as accurate as possible.

Transport:
If you dnt own a car, you hv to do a car pooling - for that you need to stay close to your colleagues.
There are free Bus services - morning 7.30 from Queensbay ( central location) to Byan Lepas. And evening 4.30/5PM from office to Queensbay. It depends whcih company you are working for.

Rent - you get decent houses from 1200 - 1500 RM/mnt with furnishing. Dnt go below that since there are areas which are not good for expats. Seperately if you are interested I will give you name of apartments where you can search.

Tele/Wifi - Per mnth 129RM for wifi with 8GB speed. Handphone - depends on your usage - but 50RM max.

Utilities - If you are talking about maintenance of apt, your owner will pay - there is a blockage of half mnth rent though. Electric - if amnt > 20RM, you need to pay, or else waived off by govt.

Groceries: you can refer to Tesco site of Penang to get an idea, but shud not be more than 600RM for both of you.

Public transport: 1 way tckt to major area is 2 RM. Plz be aware , THERE are no public transport to Byan lepas office area except morning and evening shuttles which only picks employees.

About your wife's work: She can attend interviews in dependent VISA but CANNOT work. If she gets through, then her employer will change it to work visa. But as far as my exp goes, its difficult for spouse/expats to get job here until its a shortage skill.

Nevertheless, as pointed by GRAVITAS, Penang becomes boring after a certain time, so your MISC shoots up to 200RM.

reagrds,
Ags6

at least quality of life in penang is way above than in india.. no comparison

But boring as hell.

Hi -

Need help on similar topic, I am considering a Job Offer- Location Penang @ Bayen Lepus with Annual Gross Salary of 160,000 MYR.

I have a family of 3 members including my 2 yr old son.

Looking some feedback on expenses-
# Rent (Appreciate any recommendations)
# Car Purchase on Loan ( Both New & Used )
# International Preschools ( English Speaking Faculty ) along with their Fee Structure
# Internet,Phone and other Expenses.
# Spouse Work ( Can my spouse work in Penang, Process around the same )

Appreciate help regarding the same.

Regards,
Amit.

Amit - why dont you READ what i on this website??  The costs are almost the same throughout Malaysia so what you read for KL will be the same for Penang almost, but close enough. Your salary is fine and you will probably be able to save RM4k per month.

Thanks. Can anyone confirms the house deposit amount for taking a flat on Rent in Penang. Do we have to pay any deposit ?

The deposit is 2.5 months rent - that's 2 months rent and 0.5 months which is taken in case you do not pay the utility bills. In addition you pay the 1st month's rent upfront as well. So in all its 3.5 months rent you need to pay to move into a property.