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Tax calculation on return on expatriate assignment to base country

Oct 24, 2016 at 06:43 AM

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Former Member

Hello HCM Payroll Gurus,

For Malaysian Payroll

We have an employee that was on an expat assignment to the United States since 2014 and they have just returned to Malaysia. During the assignment, they had an IT0198 with the "Contributing to tax" set as no (unchecked). Now that they have returned to Malaysia, they have an IT0198 with an effective start date of August 22, 2016 with the "Contributing to tax" set as yes (checked).

During the September payroll, the employee is now being taxed on the income for the entire year, not just the income that they have earned since they returned to Malaysia in August. This is not legally correct and they should only be taxed on the new income that they have earned since they returned from their expat assignment.

Thanks & Regards,

Ashwani Gupta

hcm
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