Update the Residency Status of Malaysian Employees
For a Malaysian entity and employee, the residency status like "Local Resident" and "Permanent Resident" have different taxes deduction. So, it is important to select the residency status to properly calculate and reflect the taxes deduction on the payslip of the Malaysian employee.
Add a Malaysian entity on the Company settings. Refer to the user guide below for the step by step procedure:
Only the Admin and Managers with Staff Privilege may perform this.
In the General tab, scroll down to the Hiring Company. Select the Malaysian entity which you can find on the dropdown list.
Go to the Identification tab. Scroll down to Nationality and select Malaysian.
The Status will appear. Select the appropriate residency status on the dropdown list.
When you select the “Local Resident” in the status dropdown and generate the payslip, then the tax should be calculated based on the applicable tax rate in Malaysia.