RESIDENCE STATUS FOR TAX PURPOSE

The whole issue is around TAX RESIDENCY not residency. That is calculated from the date your work permit started.

Here is a quote from the comments section that confirms this from https://toughnickel.com/personal-financ … Residents:

Mazlan
4 days ago from Malaysia

Lay, you are not allowed to work under a student visa. Your 182 days starts from your work visa

Based on this, I believe your earnings will be assessed as being non-resident and a flat rate of 28% will be levied. I can only suggest that you consider delaying leaving your employment until August if you want to save tax.

Hi Gravitas,

Thank you so much for your reply. It helps me figure out my situation and what options i have on the table. I will consult my future campus on the possibility of deferring my study to the next sem to serve the 182 days tax residency requirement.

Thanks a lot, appreciate it

skrizkiah - I found a document from the tax office that said if your annual earnings (Jan-Dec) were under RM34,001, then you don't pay tax. I obviously don't know your salary, but hopefully its under this figure for the time you work and this will be cleared up when you do your tax clearance.

Check this out http://lampiran2.hasil.gov.my/pdf/pdfam/01_2017_2.pdf

I also read that its under 60 days, not 90 days where there is no tax payable. But do go to this link and scroll down to the part about Tax Brochure 2017

http://www.hasil.gov.my/bt_goindex.php? … ;bt_sequ=1

Another area you need to find out what is going to happen is whether you must leave Malaysia while your Student Pass is being processed?  This is the usual requirement.

Oh really? Yes my salary is under that figure. I really hope that is the case. I will consult with my company's account and lawyer and see how it goes.

Yes i am prepared to leave Malaysia to process my student visa. However, do you know how long does it take for the company to cancel our EP usually?

Show them the HASIL document as the tax laws are so convoluted.

When I cancelled one of mine it took 10 days (2 working weeks). But it's Ramadan then Eid follows on, so it may take longer.

When I did mine I had to show my flight booking and they gave me 3 days longer than the date of the journey.

Hi. I've been in MY for over 180 days on a Resident Pass but no employment contract or earnings over RM34K pa. do I need to do anything?

Not unless you want to get any possible  benefit from a tax system to which you have previously been part of. And then it depends on the rules of that system. Malaysia does not tax money brought into the country which has been earned elsewhere, but some people use double taxation treaties to their advantage. But in terms of whether Malaysia needs you to do anything, then unless you owe tax because you have income of any sort that is derived inside Malaysia (job, rent, dividends etc.) then no action necessary.

Just an update from My company,

1. Apparently, they count the period of me still holding student visa as in the 182 days. Unfortunately, Although including that period, it's still less than 182 days.
2. Yes they say I am still charged the 28% tax although my salary is less than 34K annum

So yeah, they offer me to continue working until 182 days to avoid paying the tax. Luckily they are very supportive though. But I haven't made my decision yet because I want to start my study this september.

skrizkiah - really?  there is no logic in what they are saying - the tax office is the best place to visit with copies of your payslips, passport, resignation letter.

Turok - this may be interesting to read https://www.intheblack.com/articles/201 … n-malaysia

Thanks. I do some part time work but I get paid from the UK into my Maybank account.  Is this classified then as offshore income?

Grammarproofing?.....yes

Thanks. I'm not a resident Australian as haven't lived back in AU for almost 10 years now.

Question though, if the money I earn is in Malaysia but get paid out of the UK. Is that taxable income generated while I'm living in Malaysia and therefore I would need to pay tax? 

I noticed also the new thresh hold is RM5,000. Is that correct?

Cheers

The money does not come from a company incorporated in Malaysia - therefore it is offshore income. You should ask your UK "employer" about your tax liability in the UK.