Non-resident tax period and tax deduction period

Last activity 26 March 2018 by Jlal

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JlalMember21 March 2018 13:47:15

Hi,

Can anyone help me understand about the 28% non-resident tax reduction based on the below information.

- iam working in malaysia fro..Nov 2017
- In 2018 i went to india for a period of 14 days already in feb month.

Can anyone help me clarify the below doubts:

- If i take 1 more week leave coming month(april 2018), i wll exceed 14 days social visit period. In that case 28 % tax decuction will continue beyond june 2018? My assumption is that they deduct 28% until june 2018 only i wil get ful salary for the remaining months for the year.

- 182 days period i have to complete anytime throuh out the year? 182 days meaning it should be consecutive days or anytime in 365 days? If i exceed 14 days by may 2018, how the resident tax period wil be calculated in my case. They will deduct 28% for the whole year?

GravitasViP21 March 2018 15:19:34

9040

1. You will break continuity between tax years 2017 and 2018 with your absences and so pay 28% for 2017.

You will just delay your qualifying as tax-resident in 2018 by the cumulative number of days you are absent in 2018. (So 182 calendar days + no. of days absent)

No, you are ALWAYS taxed each month, either as a non-resident or a resident. You will therefore pay resident rates once you have been in Malaysia for 182 days in 2018. (You do not get full salary ever).

JlalMember26 March 2018 01:56:01

Thanks a lot for the reply. Would like to clarify on the below point you mentioned. I heard from my colleages that if i exceed 14 days period this year, the 182 days count will start from the day i enter malaysia after my last visit.suppose in april i come back after my india visit, whatver days i was in malaysia from jan -april will be discarded and start count 182 from the day i entered countey again (april onwards)?. From your message i understand that whtever i got from my colleages is wrong. Can you please confirm on this. Thanks for your time and patience.

You will just delay your qualifying as tax-resident in 2018 by the cumulative number of days you are absent in 2018. (So 182 calendar days + no. of days absent)

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