【HR NEWSLETTER – September 2019】
PERSONAL INCOME TAX
Tax residence status of individuals
An individual is regarded as a tax resident if he meets any of the following conditions, i.e. if he is:
- In Malaysia for a least 182 days in a calendar year;
- In Malaysia for a period of less than 182days during the year (‘shorter period”) but that period is linked to a period of physical presence of 182 or more “consecutive” days in the following or preceding year (“longer period”). Temporary absences from Malaysia due to the following reasons are counted as part of the consecutive days, provided that the individual is in Malaysia before and after each temporary absence:
- Business trips
- Treatment for ill-health
- Social visits not exceeding 14days
- In Malaysia for 90days or more during the year and, in any 3 of the 4 immediately preceding years, he was in Malaysia for at least 90 days or was resident in Malaysia; or
- Resident for the year immediately following that year and for each of the 3 immediately preceding years.
Rates of tax:
A. Resident Individual
| YA 2018/2019 | ||
| Chargeable income (RM) | Tax (RM) | % on excess |
| 5000 | 0 | 1 |
| 20000 | 150 | 3 |
| 35000 | 600 | 8 |
| 50000 | 1800 | 14 |
| 70000 | 4600 | 21 |
| 100000 | 10900 | 24 |
| 250000 | 46900 | 24.5 |
| 400000 | 83650 | 25 |
| 600000 | 133650 | 26 |
| 100000 | 237650 | 28 |
B. Non-Resident Individuals
| Type of income | Rate (%) |
| Public Entertainer’s professional income | 15 |
| Interest | 15 |
| Royalty | 10 |
| Special classes of income: | 10 |
| 1. rental of moveable property | |
| 2. technical or management services fees*# | |
| 3. payment for services rendered in connection with use of property or installation or operation of any plant, machinery or other apparatus purchased from a non-resident person* | |
| Dividends (single-tier) | Exempt |
| Business, employment income, discounts, rents, premiums, pensions annuities, other periodical payments, and other gains or profits (includes payments received for part-time/occasional broadcasting, lecturing, writing, etc. | 28 |
| Income other than the above | 10 |
* Only Services rendered in Malaysia are liable to tax. However, from 17 January 2017 to 5 September 2017, services rendered in and outside Malaysia are liable to tax.
# Services liable to tax refers to any advice, assistance or services rendered in Malaysia, and is not only limited to services of technical or management in nature (w.e.f. the date the relevant law comes into effect)
For further inquiries kindly visit LHDN website www.hasil.gov.my or contact Hasil Care Line LHDNM at 1-800-88-5436 or 603-77136666 (Overseas).
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