Pemastautin in Malaysia – What Every Employer Should Know

Classifying employees correctly as pemastautin or non-resident is more than an administrative task. It directly impacts payroll tax rates, relief eligibility, and year-end filings.

So as an employer, you need to understand pemastautin to manage staff who travel or work internationally. This article will give you information about pemastautin in details.

What Is “Pemastautin” (Tax Resident) in Malaysia?

Pemastautin means a person is treated as a tax resident for a specific year of assessment. It is decided by physical presence in Malaysia, not by immigration status or citizenship. Tax residents are assessed using progressive rates and may be eligible for reliefs and rebates. Non‑residents are taxed at a flat 30% and do not receive personal reliefs.

How Residency is Calculated: The Physical Presence Rule

Residency is based on the number of days a person is in Malaysia within the calendar year. A part of a day counts as a full day.

For example, if someone arrives at 11:00 PM and leaves at 3:00 AM the next day, that counts as two days in Malaysia.

LHDN may ask for passport stamps or travel records to prove presence, so employers should encourage employees to keep clean travel logs.

Four Categories to Qualify as a Tax Resident

1. The 182‑Day Rule

If a person is present in Malaysia for at least 182 days in the year, they qualify as a pemastautin for that year. This is the most straightforward path and relies only on counting days.

2. The Linked Period Rule

An employee may have fewer than 182 days in the current year but still qualify if this period is linked to another continuous 182‑day period in the preceding or following year. Certain temporary absences are counted as part of the continuous period:

Work‑related travel such as conferences or study abroad,
Medical leave involving the employee or immediate family, and
Short social visits up to 14 days in total (not including trips back to the person’s home country).

When these conditions are met, the current year can be “linked” to the longer period to qualify as resident.

3. The 90‑Day + 3/4‑Year Rule

If a person spends at least 90 days in Malaysia in the current year and was either a resident or present for 90 days or more in any three of the four preceding years, they qualify as a pemastautin.

4. The Past & Future Residency Rule

A person can be treated as resident even with fewer than 90 days (or zero days) in the current year if they will be resident next year and were resident in the three preceding years. Under this category, residency can apply for the current year without physical presence during that year.

Special Rule for Malaysian Public Servants

A Malaysian citizen working in the public service or a statutory authority is treated as a pemastautin for a given year if their absence is due to an overseas posting or study fully sponsored by the employer. This rule keeps their tax treatment aligned with residents while serving or studying abroad.

Key Differences: Resident vs Non-Resident Taxation

Item	Resident (Pemastautin)	Non‑Resident
Basis of tax	Progressive rates	Flat rate
Typical rates	Progressive (0% up to 30%)	30% flat
Personal reliefs/rebates	Available (subject to rules)	Not available
How determined	Physical presence tests	Fails all resident tests
Payroll impact	PCB reflects progressive bands and reliefs	PCB at 30% without reliefs

Why It Matters for Employers and HR Teams

Classifying pemastautin vs non‑resident affects monthly PCB, annual filing outcomes, and conversations about net‑of‑tax packages. For mobile employees and frequent travellers, residency status also connects to benefits planning and documentation that HR may need to keep on record. Getting it right keeps payroll accurate and avoids rework later.

FAQs

How many days do I need to stay to qualify as a tax resident?

One clear route is 182 days or more in the calendar year. There are three other routes that look at linked periods, a 90‑day test with prior‑year history, and a past‑and‑future residency link.

Does arriving late at night count as a day in Malaysia?

Yes. Any part of a day counts as a full day. An arrival at 11 PM and departure at 3 AM on the next day is counted as two days.

What if I leave Malaysia temporarily for work or vacation?

For the linked period test, certain temporary absences can still count, such as work‑related travel, medical leave (self or immediate family), and social visits up to 14 days in total (not including trips back to the home country).

Can I be a resident without entering Malaysia at all?

Yes, under the past & future residency rule. If the person was resident in the previous three years and will be resident the next year, the current year can be treated as resident even with no physical presence.

What is the difference in tax rate for residents vs non‑residents?

Residents are assessed on progressive rates and may claim reliefs/rebates. Non‑residents are taxed at 30% flat and do not receive personal reliefs.

Are public servants working abroad still considered residents?

A Malaysian citizen in public service/statutory authority who is abroad for official posting or employer‑sponsored study is treated as resident for that year.

How does residency status affect payroll and tax deductions?

Payroll (PCB) calculations depend on residency. Residents follow progressive bands and may reflect reliefs; non‑residents use 30% flat without reliefs.

Can I become a tax resident automatically if I’m a Malaysian citizen?

Citizenship alone does not decide residency. It is based on physical presence tests, except for the public service rule described above.

What documents are needed to prove tax residency to LHDN?

Passport stamps and travel records are commonly used to confirm the number of days in Malaysia. Keep them complete and accurate.

Do weekends and holidays count toward residency days?

Yes. All calendar days physically present in Malaysia count, including weekends and public holidays. A part‑day still counts as a full day.

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