Employer will be paying tax and will give net salary

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spgite New member

Member since 22 May 2018

spgiteNew member09 July 2018 16:05:33

Hello Members,

I have got a provisional offer from a MNC ( It has offices in India as well as Penang).

The salary is divided into Indian salary and Malaysian salary.

The issue is with Malaysian salary. HR says it will be a "net" salary and I don't have to pay tax on it. Instead employer will be paying tax. I don't know how this will work? Is it common? Will there be any issues?

Assuming employer pays tax, do you think I have to pax tax on that "net" salary (I mean whatever savings I have ) once I move back to India ?

Please let me know.

Thank you in advance for your time group members. You are doing an amazing job helping out people with a good information

Gravitas ViP

Member since 02 March 2011

GravitasViP09 July 2018 16:11:12

9040

I think there is a Double Taxation Treaty between Malaysia and India which will guide how the remuneration in Malaysia is handled.

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

It's a complicated area because although Malaysia does not tax offshore income, if you have an Employment Pass, then technically the income is earned in Malaysia.

If its just a short secondment with expenses paid by the Malaysian entity and salary continuing from India and a Professional Visit Pass is the mode used, this is a different situation.

spgite New member

Member since 22 May 2018

spgiteNew member31 July 2018 09:07:18

Thank you for your reply Gravitas!!

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