Hi! This is Edwin here talking about tax resident status for Individuals. Why is this important? Resident status provides tax benefits such as deductible personal relief as well as other tax rebates.
In a nut shell, the resident status is largely determined by duration of stay in Malaysia not bound by nationality or citizenship. If person stays in Malaysia for at least 182 days (not necessarily consecutive) in a calendar year, he would be treated as a resident.
However, there are other conditions where the individual can be treated as a resident even if he stays for less than 182 days. An individual is resident in Malaysia in the basis year of assessment if he
- is in Malaysia for not less than 182 days in the relevant basis year,
- is in Malaysia for a period of less than 182 days in the basis year and that period is linked to another period where he is continuously in Malaysia for not less than 182 days immediately before or after the relevant basis year.
- is in Malaysia for not less than 90 days (need not be consecutive) in the basis year and is resident or has been in Malaysia for 90 days or more in 3 out of the 4 preceding years of assessment; or
- has not been in Malaysia in the relevant basis year but he is deemed to be resident in Malaysia in the relevant basis year if he is resident in Malaysia in the following basis year and also in the each of the 3 basis year immediately preceding the relevant basis year.
I hope this information is useful for you. If you have anything to add or to comment, you may Contact Us.
