Tax rule in Malayasia

The 182 days are calculated in each individual tax year January to December. So not possible for you in 2018. You need to be in Malaysia 182 days in 2019 to first qualify as tax resident.

For best tax treatment you need to not be outside Malaysia for more than a total of 13 days for personal reasons. By limiting to that max number of days then tax year 2018 can be linked to 2019 and then both 2018 and 2019 will be re- calculated as tax resident status instead of flat rate deduction of 28% Any tax overpayment will eventually be refunded.

Thanks a lot for your response.

1oct till 31dec'18 - 92 days with 5 days break

1st jan - Mar '19 - 89 days with 7 days break

Will be considered tax resident from april?

If not till when they deduct 28% and when they refund.

You will only become tax resident after being in Malaysia for 182 days* in 2019

You will pay 28% until that time.

Refund for 2018 and 2019 will be processed via your tax return for 2019.

* 14 maximum days outside Malaysia rule - any days will be added to the 182 to find your actual date you become tax resident e.g. 182 + 14 + 196 days

If you take more than 14 days outside Malaysia in 2019, there is no tax refund for 2018 because the years are no longer linked.

R86 wrote:

Thanks a lot for your response.

1oct till 31dec'18 - 92 days with 5 days break - DOES NOT COUNT TOWARDS BECOMING TAX RES.

1st jan - Mar '19 - 89 days with 7 days break -  TAX RES. COUNT STARTS ON 1ST JANUARY 2019

Will be considered tax resident from april? - NO - ONLY AFTER 182 DAYS IN 2019

If not till when they deduct 28% and when they refund. - DEDUCT 28% OCT 2018 - JULY 2019

REFUND - AFTER TAX RETURN SUBMITTED FOR 2019 (April 2010 or when you leave if earlier)

Thanks a lot for your quick response and now its clear.

So, i can be out of country  for maximum 14 days in each year then i will be considered as resident tax.

Oct - dec'18 - 14 days out of country
Jan - July'19 - 14 days out of country

Is my understanding correct?

Read this guide.

https://www.pwc.com/my/en/publications/ … oklet.html

Page 6

The key word is "linking" tax years which is where the 14 day rule is relevant.

Perhaps you should go back and read everything I have written.

Just think of it this way. To be tax resident you have to be in Malaysia for half the year.