Non-resident Tax will be refunded once the Tax filling is done. So in simple: it's your money will be refunded back to you. But for 6 months the money is will government instead of your hand. It is the law of Malaysia! http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=1&bt_posi=2&bt_unit=1&bt_sequ=1&bt_lgv=2

1. Taxation in Malaysia for Non-Resident
Individual and Residential Individual
Under Malaysian Tax Law, both Residents and Non-Resident are subject to Income Tax on Malaysian
source income. Residents and Non-Resident status will give a different tax regime on income
earned/received from Malaysia. So, it is very important to identify whether you are Residents or Non-
Resident in regard to Malaysian Tax Law.
Non-Resident Tax
He/she will be charged for Non-resident tax on your basic salary and upon meeting the 182 days
mandatory stay period in Malaysia, The Tax charged is 28% on your basic Salary.
you may request for the reimbursement from the Inland Revenue Department of Malaysia (LHDN)
after completion of 182 Days. Hence, the difference between the non-resident tax and resident tax will
be paid back to you upon filing for the claim).
Residential Tax
If the individual is Resident in regard to Malaysian Tax Law, the individual is subjected to normal
income tax. So, after Completion of 182 days in Malaysia, He/ she will fall under Residential Tax.
For Instance:
An employee is hired for Malaysia on Employment Visa (EP) And got an offer of 5000 Ringgits per
month.
Salary Breakup: -
Gross salary of RM 5000 per month
Basic will be RM 4100 ( 28%Tax-able for 6 months and Later the resident tax is 5%)
Meal allowance RM 400
Travel allowance RM 500.
Note:So,The extra(28%-5%) 13% *6 Month tax amountwill be refundedback.
(As explained, you will be charged for non-resident tax on your basic salary and upon meeting the
182 days mandatory stay period in Malaysia, you may request for the reimbursement from the Inland
Revenue Department of Malaysia (LHDN). The difference between the non-resident tax and resident
tax will be paid back to you upon filing for the claim).