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Taxes when starting in September

Taxes when starting in September

Old May 26th 2016, 8:15 am
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Default Taxes when starting in September

If you start a new role in the middle of the year, then you'll obviously be in the country for less than 183 days for that tax year. Will you be charged a flat 26% or will they use the progressive tax scale? Thanks!
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Old May 26th 2016, 8:18 pm
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Default Re: Taxes when starting in September

Originally Posted by travelstien
If you start a new role in the middle of the year, then you'll obviously be in the country for less than 183 days for that tax year. Will you be charged a flat 26% or will they use the progressive tax scale? Thanks!
What you are asking is whether you will be taxed for 2016 as a resident individual or a non-resident individual. The answer is you will be regarded as a tax resident for 2016 because although you will be in Malaysia in 2016 for a period of less than 182 days, you will (presumably) be in Malaysia in 2017 for a period in excess of 182 days. The periods an individual spends over the two years are considered in the determination of tax residency.

Your Malaysian source income for 2016 will therefore be taxed at the progressive rates applicable to a tax-resident individual.
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Old May 27th 2016, 12:08 am
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Default Re: Taxes when starting in September

Thanks! That's really helpful. On that note, if you're working for a Labuan entity or co-located office, is it true that 50% of your income is tax exempt? If so, is that reflected in payroll taxes or do you have to claim the exemption during tax filing in the following year?
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Old May 27th 2016, 7:39 am
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Default Re: Taxes when starting in September

Originally Posted by travelstien
Thanks! That's really helpful. On that note, if you're working for a Labuan entity or co-located office, is it true that 50% of your income is tax exempt? If so, is that reflected in payroll taxes or do you have to claim the exemption during tax filing in the following year?
This is like PM's Question Time - the follow-up question is always so much harder!

Presumably you're not working in Labuan?
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Old May 27th 2016, 7:44 am
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Default Re: Taxes when starting in September

Actually the link below probably answers the question. It seems the 50% exemption is only if you work in Labuan.

http://www.mia.org.my/new/downloads/...t/2011/B18.pdf
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Old May 27th 2016, 7:49 am
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Default Re: Taxes when starting in September

Originally Posted by InVinoVeritas
Actually the link below probably answers the question. It seems the 50% exemption is only if you work in Labuan.

http://www.mia.org.my/new/downloads/...t/2011/B18.pdf
I'll be working for a Labuan co-located office in KL. I think the above link is not current. Here's a more updated source that I found, but I'd still like to get a second opinion:

https://home.kpmg.com/xx/en/home/insights/2011/12/malaysia-income-tax.html#08
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Old May 27th 2016, 8:00 am
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Default Re: Taxes when starting in September

The link I posted was also from 2011 but the KPMG link seems to be more complete. I guess your first step is to check that the co-location has Labuan Financial Services Authority approval.
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Old May 27th 2016, 8:50 am
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Default Re: Taxes when starting in September

Originally Posted by InVinoVeritas
The link I posted was also from 2011 but the KPMG link seems to be more complete. I guess your first step is to check that the co-location has Labuan Financial Services Authority approval.
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Old May 27th 2016, 8:51 am
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Default Re: Taxes when starting in September

Originally Posted by travelstien
Do you know anything about car loans for expats?
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Old May 27th 2016, 9:36 am
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Default Re: Taxes when starting in September

I saw your other thread on this. If you have an income in Malaysia then I would have thought you could get a loan. Most of the people on here try not to have Malaysian income (MM2H) but I do know one expat working in Malaysia who recently bought a car with a loan though whether it was he or the company who took out the loan, I'm not quite sure.
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Old May 27th 2016, 9:38 am
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Default Re: Taxes when starting in September

Ah gotcha. Thanks!
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