Tax (PAYE)

Old Jun 25th 2013, 11:29 am
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Default 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.
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Old Jun 25th 2013, 1:28 pm
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Default 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.
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Old Jun 25th 2013, 1:29 pm
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Default Re: Tax (PAYE)

Thanks for this. I should have a work permit valid for at least 2 years for when I arrive in August.
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Old Jun 25th 2013, 1:41 pm
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Default 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!
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Old Jun 25th 2013, 1:53 pm
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Default 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
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Old Oct 29th 2013, 2:19 am
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Default Re: Tax (PAYE)

Originally Posted by Nakrob View Post
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!
Nakrob,

Would you mind sending me the relevant forms for expat tax rules in Malaysia?

Thanks

Damian
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Old Oct 30th 2013, 5:46 pm
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Default Re: Tax (PAYE)

Originally Posted by stevedavis82 View Post
Thanks for this. I should have a work permit valid for at least 2 years for when I arrive in August.
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…)
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Old Oct 31st 2013, 12:01 am
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Default Re: Tax (PAYE)

DamianG, I've sent you a link to the doc I referred to.
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Old Nov 8th 2013, 7:18 am
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Default Re: Tax (PAYE)

Originally Posted by kebi View Post
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…)
I would need to revise the statement above. First its only 182 days. Secondly if you stay in the arriving year less than 182 days you will have to pay the 26 % tax. When you stay in the following year (link year) continuously for more than 182 days and the stay is not interrupted over the turn of the year and you don't leave the country for more than 14 days other than business, conferences or health problems you can apply for a refund of taxes paid too much for the first year.
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