Expatriate Tax Filing Requirements Webinar Held by EUROCHAM and Crowe Malaysia
The European Chamber of Commerce in Malaysia (EUROCHAM) held an informative webinar on Expatriate Tax Return Requirements in Malaysia on 14 April 2022. It was moderated by EUROCHAM and featured esteemed speakers from the accounting firm of Crowe Malaysia.
The speakers were Shalina Jaafar, Executive Director, Global Mobility Services, tax compliance specialist. The other speaker, Monaliza Mohd Ali is the Director of Global Mobility Services and specialises in expatriate and personal taxation.
They both offered an overview of the Malaysian individual tax system, the submission of tax returns via e-filing and taught viewers how to complete the 2021 Form e-BE and e-M and individual taxpayer responsibilities.
At the beginning of the webinar, the different tax rates were explained. Since expatriates can fall into both a blanket and progressive taxation, it is important to understand when to qualify as an expatriate for the more advantageous progressive taxation.
If you qualify for a “resident” status as an expat, you qualify for progressive taxation and are entitled to tax deductions. Otherwise, a flat rate of 30% will be applied as income tax and tax deductions will not be possible.
Residence status – basic regulation: depending on the physical presence in Malaysia
- In Malaysia for less than 60 days: Not subject to income tax
- Between 60 and 182 days (= non-resident): flat tax rate of 30 percent
- Longer than 182 days (=Resident): Progressive tax rate
What was particularly emphasized by Crowe Malaysia’s tax compliance specialist Shalina Jaafar was that the day of arrival (even if only by a few minutes) still counts as a “day”.
She also explained what general liabilities are for individual income taxpayers and what consequences can occur in the event of late payment.
Her teachings are especially relevant now for private individuals since their income tax must be submitted and paid by April 30 –so just a few days left 😉. In case of late payment, a penalty of 10% of income tax will be due.
Crowe Malaysia’s expatriate tax specialist Monaliza Mohd Ali explained exactly how to file your tax returns via e-filing. The form required for this is “M (e-M)” for expatriates with non-resident status and BE (e-BE) for expats with resident status.
TOP Beraten gratefully thanks EUROCHAM and Shalina Jaafar and Monaliza Mohd Ali from Crowe Malaysia for the informative webinar and their gracious advice.