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Tax refund for non-resident [HELP]

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juvann13

Hi All,

I would like to know the answer to my current issue about tax refund.


This is my story.

I been here in malaysia for almost 7 years in total. 1st -I been hired a job here in malaysia on July 23, 2011 until April 3, 2016 and hired again last Nov 27 , 2016 till now.

(tax issue)

During my exit (april 3,2016) i been tax about RM14k due to non-resident on 2011 and 2016 and resident 2012,2013,2014 and 2015. the reason for 2011 non-resident is bcoz my july 23 to dec 31 is not enough to cover the require 182 days and the following year month of march (2012) i took annual leave and go hometown for 23days , So 7(1)(b)ITA 1967 paragraph is not applicable.
My 2016 is bcoz dec 10, 2015 i took annual leave (go back hometown) till Jan 12,2016 and By Jan 13 i received an letter from my company that i got retrenched and they cut off my visa until April 3, 2016. So Jan 13 to April 3 only 81 days and that's the reason i was tax as non-resident. But in the same year 2016 i been hired Nov 27,2016 and continues stay here in malaysia until now Nov 18, 2017. I review again my status and i noticed that maybe i can get back my tax for 2016 by applying the 7(1)(d)ITA 1967
which is

7(1)(d)
"Not in Malaysia or in Malaysia for a period of less than 90 days in the basis
year [Paragraph 7(1)(d) ITA 1967]"
"An individual is considered to be resident for the basis year for a year of
assessment if he is resident for the immediately following basis year and
had been resident for the 3 immediately preceding basis years. Therefore,
an individual can be a resident in Malaysia pursuant to paragraph 7(1)(d)ITA 1967
of the ITA 1967 even though he might never actually have been in
Malaysia at all during that basis year."

EXAMPLE:
Nicholas, a lecturer from Russia had the following period of stay in
Malaysia:
Year       Period Of Stay                      Number Of Days
2006      11.10.2006 - 31.12.2006    82
2007      1.1.2007 - 31.12.2007        365days
2008      1.1.2008 - 30.9.2008          274days
2009      1.4.2009 - 4.4.2009            4days
2010      1.4.2010 - 31.12.2010        275days
The residence status of Nicholas is as follows:
Basis Year Residence Status Paragraph
2006 Resident 7(1)(b) ITA 1967
2007 Resident 7(1)(a) ITA 1967
2008 Resident 7(1)(a) ITA 1967
2009 Resident 7(1)(d) ITA 1967
2010 Resident 7(1)(a) ITA 1967
For the year of assessment 2009, Nicholas was a resident in Malaysia
although he was in Malaysia for only 4 days as he:
i. was a resident in the basis year 2010, that is the following basis
year; and
ii. had been a resident for each of the 3 immediate preceding basis
years i.e. 2006, 2007 and 2008.

I need your help to confirm is it possible that i can get back my tax for 2016 by applying this?
Any comment or advice from you guys?

konyemko

Hello,
You may need to discuss with Tax Officer in one of the LHDN offices. Basically, you need to stay in Malaysia within certain period, unless you situation under below categories:
1. sickness (required confirmation letter from doctor)
2. job assignment outside Malaysia (required confirmation letter from company)
3. immediate family member sickness (required confirmation letter from doctor)

hope this helps.

regards,
Farabi

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