Tax Residence Status: Who Is Considered a Resident?

Tax residence: a question of fact, not nationality

Your tax residence status is determined by your physical presence in Malaysia — not your nationality. Malaysian citizens are not automatically tax residents. This status is a question of fact and is determined year by year. (Sumber: R2 §4.1, §5.2.)

The four tests in section 7(1) of the ACP

You are a tax resident for a year of assessment if you meet any one of these four tests (section 7(1) of the Income Tax Act 1967):

1. (a) You are in Malaysia for 182 days or more in the basis year;
2. (b) You are in Malaysia for less than 182 days, but that period is linked to a period of 182 consecutive days in the basis year before or after it (with temporary absence provisions, including social visits of up to 14 days);
3. (c) You are in Malaysia for 90 days or more in the basis year, and in each 3 of the 4 years of assessment immediately preceding it you were a resident (or present for 90 days or more);
4. (d) You are a resident for the following year of assessment, after having been a resident for each of the 3 years of assessment immediately preceding it.

(Sumber: R1 (s.7), R2 §6.1–6.4, R3.)

Deemed resident — s.7(1B)

Citizens working in public service or statutory bodies who are not present in Malaysia on any day in the basis year because of employment outside Malaysia or attending a fully employer-sponsored course outside Malaysia are deemed residents under s.7(1B). (Sumber: R1 (s.7(1B)), R3.)

How your status affects your tax

Aspect	Resident	Non-resident
Tax rate	Progressive rates under Schedule 1, Part I, paragraph 1 (0%–30% by band)	Flat rate of 30% (see review note below)
Personal relief	Eligible	Not eligible
Rebate under s.6A(2) (chargeable income ≤ RM35,000)	Eligible	Not eligible

(Sumber: R2 §4.2, R5, R6.)

Dual residence and Certificate of Residence (COR)

If you are a resident of one of Malaysia's Double Taxation Agreement (DTA) partner countries and also of Malaysia, the DTA tie-breaker provisions determine residence for treaty purposes — but your Malaysian residence status continues to apply for domestic law. (Sumber: R2 §7.)

Certificate of Residence (COR) is issued by HASiL to confirm status for DTA benefit purposes. Individual applications require a copy of the passport; COR is available within 10 working days; no fee. (Sumber: R4.)

Frequently Asked Questions (FAQ)

Q. I am a Malaysian citizen but work abroad all year — am I a tax resident? A. Not necessarily — status is determined by physical presence, not nationality. If you work in public service or a statutory body and are not in Malaysia because of employment abroad, you may be deemed a resident under s.7(1B). (Sumber: R1, R3.)

Q. How long must I be in Malaysia to become a resident? A. Generally, 182 days or more in the basis year (test (a)). Other tests exist — a linked period, 90 days in 3 of 4 years, and following-year status after 3 consecutive years. (Sumber: R1, R3.)

Q. What happens if I am a non-resident? A. You are not eligible for personal relief or the s.6A(2) rebate, and you are taxed at the flat rate of 30% (re-confirm the current rate). (Sumber: R2 §4.2, R6.)