Income Tax 2019 - Expat or Non Expat

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Member since 12 September 2017

gauravmeMember06 March 2019 04:24:52

Hi

I came to Malaysia in Nov 2017 as a salaried expat. Paid 28% expat income tax for 2 months of Nov and Dec 2017

For 2018, I worked full year from Jan till Dec 2018. From Jan 2018 till June 2018, I paid expat income tax of 28% and from July onwards when I became a tax resident in Malaysia, I paid tax at the progressive tax rates.

Now for 2019, I will be working in Malaysia only till 15th June and leaving for my home country. A few questions.

1. Since my stay in Malaysia for 2019 will be only for less than 182 days, would I be taxed for an expat @ 28% from Jan till June 2019?

2. In case I request my employer that while my contract ends in June 2019, but they don't cancel my EP and I stay for additional 3 weeks in Malaysia (though without any salary) so I complete 182 days, would that be ok for me to be classified at tax resident for 2019, and I will not need to pay 28% tax?

3. Is there any other alternative or any specific process to follow to manage this?

Please help.

Thanks
Rob

Gravitas ViP

Member since 02 March 2011

GravitasViP06 March 2019 06:33:05

9040

It's about linking a shorter period (2019) to a tax resident period so I think the 14 day rule would apply.

Tax is connected to your contract length when you have a taxable income I think. Your employer has to send a Leavers Certificate to the tax office so not sure staying on will help.

Perhaps your employer can extend your contract if your employment pass is valid for a longer period than your contract

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