Claim tax paid in 2014

I think that period has to be linked to a further 182 tax residency period before you can get a refund, i.e. until you are tax resident you dont qualify for a return of the earlier overpayment. So you should apply from July 2015 onwards or wait until March 2016. Just think of it as a savings pot. This is what the tax rules say.

since you weren't tax resident for 2014, you need to satisfy a few conditions in order to claim back tax, otherwise 26% you paid in 2014 is not claimable.

you need to be physically in Malaysia on 31 Dec 2014 and 1 Jan 2015.
you can't travel out of country more than 14 days between Jan-June 2015. (Except business trip, which requires letter from your company )

Hi Gravitas,

Thanks for your response.
I did not get the BE form till yet. Also I am not sure if tax authorities would be knowing my residence address.
Is there any possibility of getting the same online or through any other source?

Rgds,
Amit

The rule about being in Malaysia December 31 and Jan was dropped quite a few years ago so that is not an issue.

Hi Hiroliu,

Thanks for your response.
I fulfill Condition 1 of your response. However with regards to 2nd condition, I will be away for 3 weeks in March on my annual leaves.
Will it be impacting my claim? As the info. I was having that to become tax resident, you have to stay 182 days continuous in Malaysia for a financial year, isn't it?

Rgds,
Amit

You can file online at https://e.hasil.gov.my/ but its not in English. The tax office MUST know your home address. Ask your company for details of your tax filing number etc. i.e the form they submitted when they got you a tax number. By the way, I changed my posting above, as I forgot about the rule that 2014 has to be linked to 182 days period in 2015. But still post your tax return for 2014 as that will prove what you paid and smooth the way to get the return at a later date.

I hate to tell you this, but you will start your 182 day qualification period for 2015 again when you return from a 3 week holiday. That breaks the continuity and the day count is zero'ed. That puts your qualification back by 3 or so months.

You will also break the continuity with 2014 I believe, and therefore your tax position is more complex and may be viewed over a 3 year period. You can read the rules here - it is section 2. that will apply - Paragraph 7(1)(b) of the Act :

http://www.mia.org.my/new/psp_taxation_ … amp;id=945

A financial year is January to December - not any old 182 days across 2 different years.

You MUST do a tax filing for 2014 for two reasons: 1. to try and get your overpaid tax back (eventually), and 2. to make sure your company has paid the tax into HASIL and has paid the right amount on your behalf (otherwise you will one day be paying it all again).

Hi Gravitas,

Thanks. can you please advise if my understanding (as mentioned below) is correct -

FY 2014 - I can claim for overpaid tax i.e. can claim the tax that I paid as expat. As I came in August and was here on 31Dec2014 and 1Jan2015, hence I am eligible to claim as resident.
FY 2015 - Will be eligible to claim overpaid tax (on expat rate) only if till December 2015, I complete 182 days continuous in Malaysia.

Rgds,
Amit

There is no such thing as an expat rate - its just called a non-resident rate and it applies even to Malaysians.

You will potentially get the difference between 25%/26% flat rate non-resident rate and the stepped rates back, but your holiday complicates matters.

Read the link above as it explains why.

The whole point is about how tax periods are linked and they are broken with a social absence of more than 14 days. That is why your case becomes complicated. The 182 days in any basis year have to be consecutive and not broke by such an absence. So you delay your 2015 qualification as the count to 182 starts the day you get back. You also break the continuity with 2014. But you should get your tax overpayment in April 2016 as far as I can see - you will just be paying 25% flat rate for an additional 3 months in 2015 i.e. from April onwards when you return you will pay it until 182 days are up.

Hi Gravitas,

I believe you forgot to mention the link.:-/

Rgds,
Amit

It is in the posting above.

I am not able to find it. May be this site does not allow!
Can you please send the link to me on itsamitmittal@gmail.com

The link is quite visible but here it is again:

Link to rules about resident and non-resident tax status in Malaysia

I think you will find the rules are the same in India and the UK (tax rates may be different), so take a look at them which may explain everything. The tax systems in all three countries mentioned are a legacy of British administration.

To qualify as tax resident  u need to be in the country for more than 182 days in the tax year.
However if you didn't have 182 days last year but fulfill the conditions i mentioned you are qualified as tax resident too.
I came last August as well, my company signed up with tax advisor who help me to file my tax.that's where i got to understand the tax law.
unfortunately if you will be on holiday for 3 weeks out of Malaysia,you won't be qualified as tax residents for 2014 and cant claim back the tax.
the law only allow 14 days during Jan to June for leisure purposes. There is no limit for business travel though.

Hi everyone,

I just arrived in Malaysia yesterday and got my work permit this morning. I aim to be a tax resident starting this year.

After reading the rule on resident- vs. non-resident, I still wonder how they define absence which is connected with the individual's service in Malaysia. I'm the director of my own IT company and constantly meet clients around Asia or do workshops. Can I count all of that as business trip? What kind of proof do they want?

Thanks for any tips. I'd also pay for 1/2h consulting to clarify this. Just in case you guys can recommend someone reasonably priced.