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How to claim Tax refund for excess tax deducted by employer?

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rkpor

Dear Members / Gravitas,
I worked for an American MNC in Kuala Lumpur for 2 years ( 03 Feb'2016 to 30 Jan'2018) on Employment Pass. I filed my tax return for year 2016 in mid 2017. I was due for my superannuation on 30 Jan 2018, so I applied  for Tax clearance in first week of Jan'18 and I got the Tax clearance letter from LHDN on 29th Jan indicating my tax liability of approximately RM5000. However, my employer had already deducted much higher amount from my final salary of Jan. The company's financial system calculated the tax liability assuming full year salary. The company says that they have deposited the tax with LHDN . Now I need to claim the excess tax paid by company from LHDN. I will file my tax return for the year 2017 in next month. My specific questions are :
1. Since my excess tax deduction is from my Jan'2018 salary , can I claim the refund in my return for 2017 itself, since I my EP is cancelled & I have returned to my country (India) for good. Or do I have to wait for one full year to submit my tax return for year 2018 in April'2019?
2. Is there any other process to claim tax refund , since I have taken the tax clearance already?

Any guidance on above is deeply appreciated.
Thanks in advance.
RK

Gravitas

No you don't mix tax years 2017 and 2018.

Your final tax bill is usually decided when the company submits the Leavers Form, but they also usually retain the last months salary in case there is a tax shortfall.

Any 2018 tax would be sorted out through the Leavers procedure (not through an annual tax return for 2018). But if in doubt, you could always file for a second opinion in 2019

I am surprised you did not complete the BE 2017 as part of the Leavers process.  You should do that as normal and see if LHDN pick up the issue.

You can process a Request for a Refund if you think LHDN has received too much tax from you. This would be done directly with the usual tax office that handled your file.

I assume you have a copy of the Leavers form (which I think you have to sign) so you can see what happened.

rkpor

Dear Gravitas,
Thanks for prompt response.
Yes, I signed the LEAVER form & completed the BE process for year 2017 & 2018 , as asked by LHDN while I personally submitted my application for tax clearance. The process completed with LHDN giving me Tax Clearance Letter (addressed to my company with copy to me), that mentioned the final tax liability. However, my employer had deducted excess tax and paid to LHDN.
Will the excess tax deposited by my company be refunded by LHDN to my bank account without any further action from my side (since I do not need to file tax return as I understand from your above response) ?
Thanks again,
RK

Gravitas

Mentioned Tax Refund request earlier - here are some details, including an email address, which may be helpful starting point

It is referring to Tax Filing but there is at least contact information.

Tax Refund

Tax Refund will be credited into the account automatically to the taxpayer within 30 working days after the submission of Income Tax Return Forms (ITRF). However, if you do not receive your refund you can forward your application to the Collections Unit of the branch where your file is located or complete and submit via our Feedback Form http://maklumbalas.hasil.gov.my// or by calling Hasil Care Line at toll free number 1-800-88-5436 (LHDN).

Source: http://www.hasil.gov.my/bt_goindex.php? … p;bt_lgv=2

There is also a customer feedback form at this location of their websitee

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

Dan1611

Yes, you may claim the overpaid amount from LHDN. You have to attend personally to LHDN Head Office and bring along with your payslip shown the deduction by your employer. Don't forget to bring along the Clearance letter as they need the reference file number to search out your personal file. They will have a close discussion with you in 1 room. You may solve the issue immediately, but for them to prepare and issue out the cheque with the overpaid amount may take 2 weeks to 3 weeks working day.
The suggestion you to go early in the morning.
If the time frame does not suit to your situation, try to find a solution on how to receive/collect/clear your cheque (You may need someone favour to do it for you). Ask the LHDN Officer if in case you need someone to receive the cheque on your behalf, what would their advise.

Hoping this may help.

rkpor

Dear Gravitas,
Thanks a lot for prompt response again and very helpful links.
Truly appreciate it.
Regards,
RK

rkpor

Dear Dan1611,
Thanks for your response and helpful tips.
Regards,
RK

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