A couple of weeks ago, I had a client asking about tax residency status for a few of the company’s employees. This would of course depend on the length of their stay in Malaysia 🇲🇾
Why is it important to determine tax residency status? 🤔
📌 It determines whether or not the employee can claim personal reliefs, tax rebates, and enjoy the benefit of graduated tax rates.
*Non-residence is taxed at a rate of 30% without being eligible to enjoy any tax reliefs/rebates, whereas a resident is eligible to tiered rates from 0% to 30% and reliefs/rebates.
📌 It affects their taxes at home country, including any credits and offsets available under a tax treaty.
Need help with the intricacies of tax status, withholding and running payroll? Reach out to us via WhatsApp https://wa.me/60143248237 and our team will be in touch.