Payroll Services for Malaysia Contractors

Employment status in Malaysia

Expats will find opportunities in the banking and finance sectors, engineering, IT and oil and gas industries. There are restrictions on the number of foreign employees that Malaysian companies can hire but obtaining a visa and work permit is straightforward once your position has been approved.

Workr International can provide a full range of payroll services in Malaysia. You’ll be engaged on our payroll and income is paid in the form of salary, allowances and expenses, the proportion of each part depending on your circumstances.

For salary, tax and social security, we deduct your tax and social security at source on a PAYE basis, and payments are made to the authorities on your behalf. You can reduce this taxable amount by offsetting some business expenses. We’ll discuss your personal circumstances with you and help you minimise your tax and social security liabilities, within the boundaries of Malay legislation. As for your tax return, we’ll take care of this for you. It gets filed each year in Malaysia, with advice and help from us.

Income tax in Malaysia

In Malaysia, the tax year runs with the calendar year, beginning on 1 January and ending on 31 December. All tax returns must be completed and returned before 30 April of the following year. Individuals who spend less than 182 days per year in the country are classed as non-residents and are subsequently subject to different tax regulations. A Certificate of Resident (COR) is issued to confirm your tax residency status.

Malaysia has treaties with various countries on Double Taxation Agreement (DTA), so the COR will enable you to claim the tax benefit under the DTA and to avoid being taxed twice if you’re also paying taxes in your home country. If you qualify for tax residency, Malaysia has a progressive personal income tax system in which the tax rate increases your income increases, starting at 0%, and capped at 25% before the assessment year of 2016, and 28% from 2016 onwards.

Thinking of contracting?

From early planning advice to emergency payroll for imminent work, Workr International can help you with your work arrangements.

Get in touch with one of our advisors now using the phone number at the top of the page, or use our online form and email services.