TaxSavvyMY

Tax residence for expatriates

I arrived in Malaysia in March. Am I tax resident?

The situation

Residence depends on days present in the year, generally 182 days or more, with special rules linking periods across years.

The law

  • Sec 77, Income Tax Act 1967: Individuals furnish a return each year: Form BE by 30 April, Form B by 30 June
  • Part I, Schedule 1, Income Tax Act 1967: Resident individual rates from 0% to 30% (30% above RM2 million for YA 2025)

What it means for you

Residents get reliefs and progressive rates. Non-residents pay 30% on employment income without reliefs. If you are close to 182 days, keep travel records and check the linking rules.

What to do

  1. Count days in Malaysia.
  2. Check linking rules with prior or next year.
  3. Choose BE or the non-resident form.
  4. Keep passport and travel records.

We can do this for youIndividual tax return Form BE for employees: MYR 150

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