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Help! What is the procedure for foreigner switch job in Malaysia?

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Ted Mosbe

Hi everyone!

I am now working in Malaysia, Kuala Lumpur with 2 years contract and working permit issued by an HR agent.

I have been working for 6 months, but now I would like to change the company and job(totally different job, not related to the current job at all). There is one company want to hire me but now I don't know how can I change the working permit.

I heard that company can buy foreigner's contract directly from other company and don't need to apply for the working permit again. Is it true? Or, I need to resign first and get the release letter? If so, do I need to pay for the 26% tax for 6 months again?

Please help! I really don't want to work for the exisiting company, because they delay salary and don't care about employees at all!! I will be highly appreciate for those who provide any ideas to me!!

Fauzi81

Hey there.

Welcome to Malaysia. If you want I know a way to help u. Call me at 0124396550

Gravitas

No, your information is not correct. Your present company has to issue a No Objection letter and cancel your employment pass. You leave the country and are hired by the new company.

Ted Mosbe

HI,

Thanks for your reply.

But my indian manager was hired by my agent, he was under another agent before. I don't know how my agent buy his contract from the other company so that he didn't need to resign and go back to India then come again.

If I am wrong, can you tell me about the no objection letter and what about the tax I paid for 6 months? Do I need to pay 26% foreign employee tax again in the future?

Thanks for your ideas.

Ted Mosbe

Hi,

Thanks for your reply.

I will contact you. But I hope that is not the illeagal way.  :)

Thanks

Gravitas

The point is what name of employer is in your passport.  It has to reflect the company you are working for. So if it is under the name of the Agent, and you are paid by them, you would not need to change the employment pass.

Tax is taken over a one year period from January to December. You have to work for 182 days in a calendar year to be tax resident.

Ted Mosbe

1. The name in my working permit is an HR agent company. I am not directly under my actual working compan. The agent company hire me and outsource to their customer company. So in this way, is it possible for my Agent company to switch me to another company? since they are the agent. I know it may be depend on the agent itself. But want to know that they have this right to do that, right?

2. For the tax, my contract mention that require 182 living in Malaysia. But no specify th calendar year. I come on August 2014. So how long I need to pay for the 26% tax and when can I apply for the tax refund?

Thanks again for your prompt reply! I deeply appreciate your further advices.

Fauzi81

Of course not... Its dangerouse to do it ilegally... Pointless n waste of money to do it that way....

Ted Mosbe

Hi,

What do you mean "pointless to do it that way?"  Appreciate your further explaination.

Fauzi81

Its pointless if u do it illegal way. Cuz if u get caught then it is pointless...

Fauzi81

Dude, whatsapp me.. I have a friend who work for the govt who knows in and out about this... Maybe she can give u an advice on how to do it legal way...

Ted Mosbe

Fauzi81 wrote:

Its pointless if u do it illegal way. Cuz if u get caught then it is pointless...


Understand, it's great if it can be solved.

Ted Mosbe

Fauzi81 wrote:

Dude, whatsapp me.. I have a friend who work for the govt who knows in and out about this... Maybe she can give u an advice on how to do it legal way...


Ok, that is great. Let me settle things up first. I will whatsapp you soon. Thanks a lot for your advices.

Fauzi81

Cool... Take care .

Ted Mosbe

Fauzi81 wrote:

Cool... Take care .


Thank you again.

Gravitas

If you are employed by the HR Agent and your employment pass states their name according to your contract with them how frequently they can offer your services. If you came in August you will pay 26% for 2014. You will pay 25% for January-June inclusive in 2015 as the rate goes down this year and there are some other adjustments in the tax steps. Not all companies deduct the correct tax. As long as you dont leave the country on leisure purposes for more than 14 days, you qualify for tax residency after 182 days in 2015. You can file for tax refunds in April 2016. You will get a refund for 2014 and 2015. Its a savings policy in effect. If you decide to leave the country earlier than April 2016, on departure you sort out your tax and get a Leavers Certificate. The company should help you with this.

Ted Mosbe

Gravitas wrote:

If you are employed by the HR Agent and your employment pass states their name according to your contract with them how frequently they can offer your services. If you came in August you will pay 26% for 2014. You will pay 25% for January-June inclusive in 2015 as the rate goes down this year and there are some other adjustments in the tax steps. Not all companies deduct the correct tax. As long as you dont leave the country on leisure purposes for more than 14 days, you qualify for tax residency after 182 days in 2015. You can file for tax refunds in April 2016. You will get a refund for 2014 and 2015. Its a savings policy in effect. If you decide to leave the country earlier than April 2016, on departure you sort out your tax and get a Leavers Certificate. The company should help you with this.


Wow, that is quiet a long time for me to get the tax refund. BTW, I just asked your help in others post before I saw your comment here. But hope you can help me.

As I want to switch company and don't want to go back to my country waiting again.  If the NOC(No Objection Certificate) can help? If so, should I ask my current company to issue for me or other department? If not, do you have any advices for shortening the procedure?

sumitverma

Hi Everyone,  I am an Indian, I came Malaysia on EP on 31st Oct 2014.

And I got Work Permit on 18th Nov 2014 and it is valid till 31st Oct 2015.
I have 3 queries, Please guide me.

1. I want to know about the either am I eligible for pay tax as residence for 2014 basis year or not?

I am planning to go out of Malaysia from 27th Jan 2015 to 9th Feb 2015. (12 days out of Malaysia - excluding departure & arrival dates) to my home country India.


2. If I will drop my plan and I will be staying continuously till 30th April 2015, so am I eligible for 2014 as resident in Malaysia for tax purposes. (As per my understanding). [Because I will be completing consecutive 182 days on 30th April]


If I will be not available (for 12 days) in Malaysia before completing 182 consecutive days (i. e.before 30th April 2015) and I will be visiting India(home country) for vacation.
As per website document, temporary absence is allow but if temporary absence is social visit, & it should not be exceeding fourteen days in the aggregate.

3. So is my temporary absence consider as social visit & is it count in 182 days consecutive days?




As per residence individual clause 7(1)b in IRBM, i.e.

http://www.agc.gov.my/Akta/Vol.%202/Act%2053.pdfhttp://www.hasil.gov.my/pdf/pdfam/individual.pdfhttp://www.ey.com/Publication/vwLUAsset … 0guide.pdf (Page no 791)



-----------------------
7.
(1) For the purposes of this Act,
an individual is resident in
Malaysia for the basis year for a particular year of assessment if—
(a) he is in Malaysia in that
basis year for a period or
periods amounting in all to
one hundred and eighty-
two days or more;
(b) he is in Malaysia in that basis year for a period of less
than one hundred and eighty-two days and that period
is linked by or to another period of one hundred and
eighty-two or more consecutive days (hereinafter
referred to in this paragraph as such period)
throughout which he is in Malaysia in the basis year
for the year of assessment immediately preceding that
particular year of assessment or in that basis year for the year of assessment immediately following that
particular year of assessment:

Provided that any temporary absence from
Malaysia—
(i) connected with his service in Malaysia and owing to service matters or attending conferences or seminars or study abroad;
(ii) owing to ill-health involving himself or a
member of his immediate family; and
(iii) in respect of social visits not exceeding fourteen days in the aggregate,

shall be taken to form part of such period or that
period, as the case may be, if he is in Malaysia
immediately prior to and after that temporary absence;


---------------------------------

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