Regards Income tax 28%

The deduction is correct at 28% because you are non-resident for tax year 2017 (Jan-Dec)

You will continue to be deducted 28% in 2018 until you become tax-resident. That is once you have been in Malaysia working for 183 days.

Your 10 day absence is OK as personal absences of 14 days are the length of time which interupts the qualifying period for tax residence.  This will mean that you will be able to link Year of Assessment 2017 to 2018.

You will be able to claim a tax rebate for both tax years (as long as you don't exit for leisure reasons in 2018 before qualifying).

Once you are tax-resident you will pay income tax at the normal stepped rates (i.e. the upper portions of annual salary will be taxed at higher rates).

You will be able to get the rebate for the difference between the 28% non-resident rate and the tax-resident stepped rates.  It may be possible to apply for this at the tax office once you qualify as tax resident or otherwise it will be forthcoming when you submit your Tax Return for 2018 (in early 2019).

You will need to submit a Tax Return for 2017 (in early 2018) to open your annual tax reporting. However, it will not result in an immediate refund.

Thanks for the quick reply :-)

Sorry one more clarification.

For take example :-

I'm currently getting salary of 10K in  months of October,November & December 2017. And January, February & March 2018.

My tax is 28% because I'm Non-Residence and I will pay tax as MYR 10K for 28 % per month is 2800 MYR, so approximately  i will pay for 6 month MYR 16,800.

For the paid tax amount MYR 16,800. How much MYR amount will get refund/rebate, on which year?

If possible to refund of all MYR 16,800 or else for 6 months they will deducted as "Tax-Residence" tax and the balance amount will get/refund ??

So they will deducted as "Tax-Residence" tax approximately how will get refund for me??


Please give info its helpful for us. Thanks in very advance.

You can work out what the tax-resident income tax payments are by using the tax office table here: http://lampiran2.hasil.gov.my/pdf/pdfam … 37f10fa183

However the first RM9k of annual pay is tax free ONLY if you are tax resident.

So deduct this amount from your total 2017 salary payments (Oct-Dec), before working out the difference between resident and the flat 28% tax rates. 

Also note that the resident tax steps for 2018 have been altered slightly.

Tax Bracket 20,001 - 35,000 reduction to 3% from current 5%
Tax Bracket 35,001 - 50,000 reduction to 8% from current 10%
Tax Bracket 50,001 - 70,000 reduction to 14% from current 16%

You will get a refund NOT of the whole amount, but the DIFFERENCE between flat 28% and the sum of the different steps for tax residents. So for 2017 they are retroactively re-assessing your tax as if you were tax resident.

The same retroactive re-assement will also be done for Jan-July (183 days) for 2018.

You will continue to pay monthly stepped deductions from July-Dec 2018 i.e. tax-resident rates.

Refunds are paid into your bank account.

If you want to read more about tax use the HASIL website http://www.hasil.gov.my/bt_goindex.php? … ;bt_sequ=1

The Price Waterhouse brochure is also useful https://www.pwc.com/my/en/assets/public … ooklet.pdf