Need Suggestion in Accepting Malaysian Offer

To move to another country you should consider the Cost of Living (Numbeo or Expatistan) when comparing salary. Also check the income tax payable http://lampiran2.hasil.gov.my/pdf/pdfam/01_2017_2.pdf (Malaysia has a tiered system which means strata of the salary are taxed at different percentages - e.g. only the portion of salary falling in higher tax brackets is taxed at the higher rate). There is a non-resident flat rate of tax of 28% but it is possible by keeping to the rules of absence from the country and linking 2 tax years when first arriving in the country, to have the tax equalised (retrospectively qualifying to pay tax-resident tiered system rates).

The salary offered will enable you to save if you live a reasonable lifestyle and are paying tax-resident rates (refund of overpaid tax are given once qualifying has been achieved). I would guess (not knowing your consumption) you may be able to save RM3-5k per month

If you have school-going children then little to no savings would be possible. This is because of the fees at international schools which foreign children are required to attend.

Hi Gravitas,

          Thanks for your prompt response. 
It is a  long term contract with minimum one year of duration.
So, Initially if they deduct tax then how much % it would be and how much can I claim back once I achieve the eligibility? Could you pls explain.
Planning to bring my wife later based on the situation over there.

Thanks..

The link I posted has the tax steps shown. As mentioned, the tax system for tax-residents (183 days in a year) is in increasing percentages. So if you take your annual salary and then apply the different stepped percentages, then divide by 12 you can see your monthly tax deduction.

There is no chance to be tax-resident in 2017 so you must not leave the country on personal travel for more than 14 days during the remainder of this year and during the first 183 days in 2018. If you do, the count of days of residence is zeroed and would start again.

Tax years follow the calender, so are January to December. So until mid 2018 you will be paying flat rate 28% but with the ability to be paid back the difference between the resident and non-resident rate, once you have qualified to be tax resident.

Ok..
But one small doubt in this 183 stay period..
Is the 183 stay considered for each financial year?
For e.g If I start working in Malaysia from Sep 1st,2017  I would be completing 183 days by March. So, Will I be becoming a resident from April,2018 so that I can pay less tax from April.,2018?

Or Do I Again need to complete 183 days in year ,2018  irrespective of my stay during 2017.
IN that case I need to pay 28% tax until June and from July I can pay less. Am I right?

It's 183 days in the first full tax year. You have to observe the absence rules in 2018 until you have had a presence of 183 days, as it is the first opportunity to actually qualify. If the absence rules are broken then the 28% non-resident rate just continues and the day count is zeroed again.

https://www.pwc.com/my/en/assets/public … ooklet.pdf

The tax will basically be equalised over the tax year or the difference between resident and non-resident rates will be refunded via making a tax return. I mentioned above how to link tax years to qualify to retrospectively pay resident tax for 2017 and 2018 onwards.

To the original poster, 11000RM a month is a decent salary for Malaysia, and depending on where you wish to live and how, should be sufficient.

As to how it compares to your Indian salary, a currency converter will help you, then take into consideration cost of living to decide if the offer is right for you.

Hi sateesh, firstly no one outside india understands the term lakh. This is only used in India. Coming back to ur question, yes 11k is a decent package. It depends on how many years of experience you and your field of work. But 11k equals 1.63lakhs roughly per month. Thats a pretty decent bump up.

Of course your lifestyle also matters. If its u n ur wife, then all good. If u have school going kids, then it would be a bit low.

24% tax is a temporary thing. Since ur planning to stay for a while in malaysia, dont worry too much about it.

Thanks for the suggestion. Stretch..

Hi Carlyle..
Yeah. Got to know that the salary offered is decent enough for me and my wife.
Have to decide the place of stay based on work location.
Thanks,
Sateesh

Where is your place of work? Figure out the closest train station and then look along that train line. You will b able to find different. If ur working at kl sentral, then plenty of options ;-)

Hello
My work location would be Petronas.
Could you please suggest me a place nearby where I can find out a decent stay for me and my wife. Looking for an apartment and My budget  is in the range 1500-2500RM
Thanks.

Have a look at iproperty.com.my or propertyguru.com.my. Check out this condo called Orion.

Thanks for that Carl.. Will look into that.

Hi Gravitas..
Need one small clarification. My company sponsors dependent visa for my wife. Will she be allowed to work in Malaysia if she has a dependent visa.
Could you please suggest.
Thank you

No, Sateesh. Your wife would need to compete in the local job market and obtain a qualifying job offer and this would be processed as a professional pass application in her own right. This would replace her dependent pass. There is a minimum salary requirement.

Thank you..
Any specific job portal that you can suggest??

Robert Walters, Jobstreet (only jobs that do not require local languages), SpringAsia Professional.

Hi Gravitas.
One of my friends is planning to take a condo in setiawangsa. What about safety and security there?
What are the safe and secure places for expats here in KL?
Please suggest

Interestingly I just found this (never seen this type of demographic and safety analysis before). https://www.propsocial.my/location/77/setiawangsa

The search facility also covers info about individual developments.

Hi Gravitas,
I found one nice property ''The Elements @ Ampang Hilir". But the issue is, there is no LRT nearby and it would be a problem for me to commute to the office. Could you please suggest if I can find some Daily Carpool/ Shuttle bus from The Elements to KLCC. Any one offering shuttle services from specific locations across KL?


Thanks,
Sateesh

There are reports of a lot of construction going on around the area and right next to The Elements at the moment and it may be a little bit ugly with flyover etc. There are buses with routes along Jalan Ampang but it is reknowned for being a nightmare during rush hours. Uber and Grab would be available but timing would be important to avoid jams. Getting to the nearest LRT at Jeletek might be an option to pick up route into KLCC.

GrabCar is the best option. Jelatek station would be too close to travel by train. From elements, you can take the E12 highway that takes you directly to klcc. Fastest in my opinion.