What are the criteria for an individual to become a tax resident in Malaysia?

There are 4 criteria for the basis year of assessment to determine an individual’s residency status in Malaysia.

If he falls into any of these criteria, he will be a resident, if not, he will be a non-resident.

Let's start to understand the following 4 criteria:

In Malaysia for ≥ 182 days in a basis year

The number of days does not have to be consecutive.

In Malaysia for ≤ 182 days in basis year

A period of less than 182 days can be linked to another period of 182 consecutive days or more during which he was in Malaysia before or after the current basic year.

In calculating the period, temporary absence is allowed as following: -

1. Attending conference or seminar abroad

2. Ill-heath involving the individual or immediate family member

3. Social visit not more than 14 days

In Malaysia for ≥ 90 days

The number of days does not have to be consecutive. 3 out of 4 years of assessment before/after the current year assessment

He is a resident; OR
He is in Malaysia for 90 days or more

Not in Malaysia or in Malaysia for ≤ 90 days

The individual is resident for 3 consecutive year assessment prior to the current basic year assessment; AND
The individual is a resident for the next year of assessment.

Source:

Public Ruling No 11/2017 - Residence Status of Individuals

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