Tax (PAYE)
#1
Just Joined
Thread Starter
Joined: Jun 2013
Posts: 9
Tax (PAYE)
Afternoon all,
Can anyone explain how the tax system works. I am led to believe that for the 1st 6months of residency you pay 26% as a Expat and after that it changes to a lower rate?
Any help would be appreciated.
Can anyone explain how the tax system works. I am led to believe that for the 1st 6months of residency you pay 26% as a Expat and after that it changes to a lower rate?
Any help would be appreciated.
#2
Forum Regular
Joined: Sep 2012
Location: Sydney
Posts: 195
Re: Tax (PAYE)
Not entrely true. Check the hasil website (LHDN) for more info on how Malaysia views your residency status. You may be considered a resident from e day you arrive if you meet other criteria, and hence pay a lower rate and can claim certain deductions. I've a useful document on this on my work PC which I will PM you tomorrow.
#3
Just Joined
Thread Starter
Joined: Jun 2013
Posts: 9
Re: Tax (PAYE)
Thanks for this. I should have a work permit valid for at least 2 years for when I arrive in August.
#4
Forum Regular
Joined: Sep 2012
Location: Sydney
Posts: 195
Re: Tax (PAYE)
Ok, same situation as me. You should be considered a tax resident from the day you arrive so long as you aren't out of the country for more than 14 days in first six months of 2014. It's complex so rather than explain more I'll PM you the docs tomorrow.
PS: disclaimer from personal experience with international/expat tax is that everyone's situation is subtly different so when I say 'same situation as me' take it which a pinch of salt!
PS: disclaimer from personal experience with international/expat tax is that everyone's situation is subtly different so when I say 'same situation as me' take it which a pinch of salt!
#5
Forum Regular
Joined: Sep 2012
Location: Sydney
Posts: 195
Re: Tax (PAYE)
Here's the link to the site I mentioned above, this may answer a few questions:
http://www.hasil.gov.my/index.php
http://www.hasil.gov.my/index.php
#6
Just Joined
Joined: Jul 2013
Posts: 24
Re: Tax (PAYE)
Ok, same situation as me. You should be considered a tax resident from the day you arrive so long as you aren't out of the country for more than 14 days in first six months of 2014. It's complex so rather than explain more I'll PM you the docs tomorrow.
PS: disclaimer from personal experience with international/expat tax is that everyone's situation is subtly different so when I say 'same situation as me' take it which a pinch of salt!
PS: disclaimer from personal experience with international/expat tax is that everyone's situation is subtly different so when I say 'same situation as me' take it which a pinch of salt!
Would you mind sending me the relevant forms for expat tax rules in Malaysia?
Thanks
Damian
#7
Re: Tax (PAYE)
If you arrive in August you will not be in Malaysia for more than 183 days in that tax year and will have to pay the 26%. There are some tricky exemptions. There is a clause that if you stay continuously for the following year and altogether you can prove the 183 days you will be taxed according to your income. You must make sure that you are in the Malaysia between the 31. Dec and 1. Jan and you are not allowed to leave the country within this first period for more than 2 weeks ( which will be deducted from the 183 days) or you will need to prove some of the exemptions ( close relative died…)
#8
Forum Regular
Joined: Sep 2012
Location: Sydney
Posts: 195
Re: Tax (PAYE)
DamianG, I've sent you a link to the doc I referred to.
#9
Re: Tax (PAYE)
If you arrive in August you will not be in Malaysia for more than 183 days in that tax year and will have to pay the 26%. There are some tricky exemptions. There is a clause that if you stay continuously for the following year and altogether you can prove the 183 days you will be taxed according to your income. You must make sure that you are in the Malaysia between the 31. Dec and 1. Jan and you are not allowed to leave the country within this first period for more than 2 weeks ( which will be deducted from the 183 days) or you will need to prove some of the exemptions ( close relative died…)