Expat taxes in Malaysia

Hi noname,

The amount you are taxed or how much you are taxed in Malaysia will depend on how long you are in the country. If you remain in the country for more 182 days a year, you will be considered a resident and taxed accordingly. You rate of tax will range from 0-26 percent depending on your income.

I am not sure what the case will be if you are being paid into a foreign account. I would suggest you check with your employer as they are likely to have dealt with numerous people in a similar positon.

Also, I sugges you have a read of the Banking, Money and Taxes in Malaysia page for more information.

Good luck.

Shantalie 

hi, I'm currently working in singapore which has a lower tax rate than malaysia, so there's obvious financial benefit. Found the following, which seems to suggest that although I'll be a tax-resident, I won't have to pay tax in Malaysia if I'm hired and paid outside the country. "All individuals are liable to tax on income accrued in and derived from Malaysia or received in Malaysia from outside Malaysia. Income remitted to Malaysia by a resident individual is exempted from tax."

The malay tax system is a law onto itself. Expect the following. 1. For the first six months pay up to 28 percent tax with a promise they will return the excessive tax later. How much should they return? This is always unclear and confusing. 2. Ignore the promises of 6 per cent tax, it will not happen,unless you are Indonesian, Bangledeshi or Pakistani on a low income, 12 percent is more likely. 3. If you get an annual bonus, expect the tax office to add this amount to your monthly salary amount for one month and place you in somethin akin to a super tax level for that month. 4. If you question the actions of the tax office, they will phone your employer and complain. Other taxes. 1. When you drive onto a highway you will encounter tool booths, even though the highways are built with tax payers money and are not private sector. If you drive you will also pay road tax which is not cheap, considering road tax is for road use and maintenance, it does seem odd that toll booths are everywhere. 2. VAT on virtually anything that you buy. 3. Renting an apartment, requires a tax style charge to you on your rent contract via a government office. 4. Contrary to the image put out, >malaysia is an expensive country to live in.

Hi, I am Malaysia on 8 months contract. I arrived in January 2013 and my contract will be expiring on August 31st. I am already paying 26% tax monthly and will be considered a resident from July. What is concerning me is, if my contract is over and not extended and if I have to go back to my country, will I get the refund of my tax immediately...? some of my colleagues mentioned that I will get my tax refund immediately since I have already completed 182 days. I still am not sure how this works.. Could someone please help me with this.. It will be highly appreciated.. Thank you - Eric

Hi, I am in Malaysia on 8 months contract. I arrived in January 2013 and my contract will be expiring on August 31st. I am already paying 26% tax monthly and will be considered a resident from July. What is concerning me is, if my contract is over and not extended and if I have to go back to my country, will I get the refund of my tax immediately...? some of my colleagues mentioned that I will get my tax refund immediately since I have already completed 182 days. I still am not sure how this works.. Could someone please help me with this.. It will be highly appreciated.. Thank you - Eric