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Malaysian Tax Resident Status Query

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sr33jan

Hello All

I came to Malaysia on 26th Jun this year by single entry visa through my company. I started working from 26th june only. However, my employment pass was issued on 3rd July. I have below query:

1. Will the 182 days count start from 26th june (189 days availavle - both date inclusive) or 3rd June (182 days available - start/end date inclusive)?

2. I am out of Malaysia for upto 10 days for social visit. I read the 14 days rule. Will I be considered a Tax resident for this year?

Regards

Gravitas

The date to be considered is the start of your earnings in Malaysia i.e. when you received  a salary.

You can become tax-resident in 2018 as long as you dont take any absences which would reduce your presence in Malaysia lower than 182 days.

You need to be physically in Malaysia for 182 days to become tax resident for tax year 2018. I think your planned absence will prevent that - so count the full days (i.e. 24 hrs) you are outside Malaysia and adjust your planned absence accordingly.

Check the end date of your EP.

sr33jan

Thanks for replying!

The end date of my EP is 25 jun 2020

I got my first salary on july end (which includes my salary from 26th jun). So, you are saying the 182 days starts from July end?

Also, won't 14 days Social visit allowed here?

Regards

Gravitas

So your contract started on 26 June 2018  and you just need to be in Malaysia for 182 days in 2018 to become tax resident

14 day rule is not relevant. Its for linking tax years.

The rule that applies is 182 days. Tax residency is achieved only when you are in Malaysia for 182 days during a tax year (Jan-Dec)

sr33jan

Thanks Gravitas!

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