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income tax for expats

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income tax for expats

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Postby Liv C » Wed Oct 05, 2005 9:00 pm

i tried to do some web search myself on these details,but can't seem to find much info. i'd need some help from those who are already working in malaysia for a while. how much does an expat needs to pay(rates) for income tax for the salary of
a)100k p.a or
b)360k p.a
what kind of tax relief does he gets if he's married to a malaysian wife and have 1 kid? is there any kind of refund at the end of his working period,if he's to purchase a local medical insurance?

or does anyone have a suggestion on how to go about on getting a good medical insurance in malaysia?

what other kinds of tax relief does an expatriate entitles?

thank you in advance,
liv.
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Re: income tax for expats

Postby Ahnissi » Wed Oct 05, 2005 9:25 pm

Olivia Luthi wrote:i tried to do some web search myself on these details,but can't seem to find much info. i'd need some help from those who are already working in malaysia for a while. how much does an expat needs to pay(rates) for income tax for the salary of
a)100k p.a or
b)360k p.a
what kind of tax relief does he gets if he's married to a malaysian wife and have 1 kid? is there any kind of refund at the end of his working period,if he's to purchase a local medical insurance?


http://www.hasilnet.org.my/english/eng_index.asp
You can find all the information there. Too long to explain, honestly.
or does anyone have a suggestion on how to go about on getting a good medical insurance in malaysia?

I signed up with ING:
http://www.ing.com.my/Default.asp
Was lucky enough not to use the policy yet, so cannot comment on how easy the claiming process would be. However, they provide an electronic card, which guarantees a cashless admission to most of Malaysian private hospitals. The hospitals have all the necessary papers, and collect payments directly from ING, so you don't have to pay yourself or claim anything, only fill in and sing the papers. So I was explained, didn't try it on practice yet (thanks God!)
I'm sure there are other decent insurance companies on Malaysian market, such as American International Assurance, so other members who use their services, can eleborate here.

what other kinds of tax relief does an expatriate entitles?

The same relieves as Malaysians. Please check out the link above.
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Postby Liv C » Wed Oct 05, 2005 9:34 pm

thanks for the fast info.i appreciate it.
somehow,it's not so clear on the spousal rebate.it states for child it's 1k per child.this part is unclear.any suggestions?
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Postby Ahnissi » Wed Oct 05, 2005 10:02 pm

Olivia Luthi wrote:thanks for the fast info.i appreciate it.
somehow,it's not so clear on the spousal rebate.it states for child it's 1k per child.this part is unclear.any suggestions?

Personal relief, for which every resident is eligible, is RM8000.
Resident for tax purpose is everyone who lives in Malaysia longer than 6 months in a year.
For combined assessment (when your income is assessed together with your spouse's, or if either one of you doesn't have any income), the spouse rebate is RM3000.
For 1 child younger than 18, the rebate is RM800. Medical insurance can be rebated up to max. RM3000 for the family.
All the above is mentioned assuming all of the family members are healthy. For disabled, the rates are different.
If you pay your attention, there's a useful button (e-Calculator) on the main page. Just press it, and follow on. Hope this helps.
Last edited by Ahnissi on Wed Oct 05, 2005 11:09 pm, edited 1 time in total.
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Postby Liv C » Wed Oct 05, 2005 10:08 pm

great.thanks so much.that's very helpful.
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Postby Liv C » Wed Oct 05, 2005 10:23 pm

so,as long as you're a working permit,you're considered a resident?the right form to fill in is the income tax return form (BE2004)?
in your opinion,are income taxes in malaysia relatively cheap?

sorry,it's all new to me.i just wanna be sure.

thanks again,
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Postby Ahnissi » Wed Oct 05, 2005 10:51 pm

Olivia Luthi wrote:so,as long as you're a working permit,you're considered a resident?the right form to fill in is the income tax return form (BE2004)?

Resident is everyone who resides in Malaysia longer than 6 months in a year, and has income (not necessarily from employment).
The form BE2004 is to fill in if you had only employment income.
If you had any business income, it has to be the form B2004. I guess that around the end of the year, or maybe in February, they may update the forms. I'm also relatively new here, so not absolutely sure.

in your opinion,are income taxes in malaysia relatively cheap?
sorry,it's all new to me.i just wanna be sure.


Yes, the income tax rates are quite low here, but only for the residents with lower income.
With income above RM250,000 and non-resident flat rate (28%) or RM100,000 (27%), it's about the same like in many other countries.
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