Frequently Asked Questions

This section contains frequently asked questions on the RP-T, extension of endorsement procedure and personal income tax for RP-T holders. If you are unable to find an answer to your question, kindly contact us via the email form here.
  • General Questions
  • Extension of Endorsement
  • Personal Income Tax For RP-T Holders
General Questions
Extension of Endorsement
Personal Income Tax For RP-T Holders
  • As a RP-T holder, do I have to file my Malaysian income tax return any differently from prior years?
    No. As per prior years, you are required to file your Malaysian tax return and pay any balance of taxes by 30 April following the calendar year in which income is derived. Please note that electronic filing is encouraged by the Lembaga Hasil Dalam Negeri Malaysia (Inland Revenue Board Of Malaysia).
  • As an RP-T holder, do I have to report my rental / dividend / interest / other personal income, which I received in my home country, for income tax purposes in Malaysia?
    Malaysia adopts a territorial scope of taxation in which only income derived in Malaysia is subject to Malaysian income tax laws. As such, any income received in your home country is not subject to Malaysian income tax since it is not Malaysian-sourced income.
  • How about my employment income which is paid into an overseas account? As a RP-T holder, do I have to report this income for taxation purposes in Malaysia?
    In cases where part of your Malaysian employment income is paid into an overseas bank account, the said income is a taxable Malaysian-sourced income as it is derived from your employment exercised in Malaysia.
  • Would a RP-T holder be entitled to pay lower personal income taxes or have any special tax benefits?
    Generally, tax residents in Malaysia pay lower taxes and are entitled to tax reliefs. Tax residence status is based on an individual’s physical presence in Malaysia, regardless of the type of immigration pass held.
     
    An individual is regarded as a tax resident if he meets any of the following conditions, eg if he is:
    • Present in Malaysia for at least 182 days in calendar year.  
    • Present <182 days in calendar year, but linked to a period of >182 consecutive days in the following / preceding calendar year, including brief temporary absences during that period.
    • Present in Malaysia >90 days in year, and resident or present >90 days in any three of the four immediately preceding years  
    • Resident in Malaysia in the following calendar year and 3 immediate preceding years.  

    If you meet the above conditions, you are entitled to claim personal tax reliefs and your taxable income (net of tax relief) be taxed at progressive tax rates (from 0 to 26%).  

    Non-tax residents are not entitled to claim any tax reliefs and their Malaysian-sourced income is taxed at a flat rate of 26%. 
  • As a RP-T holder, do I need to contribute to the Malaysian Employees Provident Fund (EPF)?
    It is not mandatory for foreigners to contribute to the EPF. However, you may contribute on a voluntary basis, provided that your employer is also agreeable to contribute the employer’s portion of the EPF contribution.
     
    Please note that the current statutory contribution rates are as follows:
    • Employer: 12%  
    • Employee: 11%  

    By contributing to the EPF, you are entitled to an annual tax relief of up to RM6,000 (maximum relief for contributions to EPF and life insurance premium). At the same time, the employer’s portion of the EPF contributions is not taxable upon withdrawal (conditions apply for withdrawal of the EPF). 
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