# Uk Employee working in Malaysia



## Venom_Bottle (Jun 29, 2020)

Hi,

I've been employed in the UK for 4 years and I'm looking to continue to work at the same company remotely from Malaysia. My manager is supportive of the idea but Its quite a new concept for everyone at my company and I'm worried that a lack of understanding might thwart might efforts in spite of a genuinely legal way of doing it. 
Visa wise I'm sorted 'my wife will have an EP and I'll get a DP off the back of that), I gather Income tax is fairly straight forward too. NI I should pay for 52 weeks and then after that I think I don't but not sure.
There has been some mention of corporation tax and possibly not being able to let me go because my company doesn't have a business entity in that country. Does anyone know anything about this? Or anything else that might trip me up so I can be well informed in advance of any comeback?

Thanks


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## Bevdeforges (Nov 16, 2007)

I don't know anything at all about the tax situation in Malaysia, but as far as international taxation goes, the general principle is that you are assumed to be "working in" whatever country you are physically present in while doing whatever work you are being paid for. That usually means that you need to meet the tax and labor laws and requirements of your country of residence rather than those of the country your employer happens to be in. (And that's where the notion comes in of your employer having a business entity in the country comes in.)

If you are only living in Malaysia and working remotely from there for a temporary period of time (say 1 to 3 or 5 years) there may be a way for your employer to allow you to continue to pay social insurances back "home" while you will be expected to pay income taxes in Malaysia. However, due to much abuse of these sorts of arrangements some countries are pretty strict about the requirements and may get nasty if you "change your mind" and decide to stay permanently.

Your employer may want to try contacting the British Embassy in Malaysia - or to see if there is some sort of British Chamber of Commerce or other British trade group in Malaysia that might be able to guide them in how best to handle a remote working situation like yours.


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## Traveller1 (Jan 12, 2022)

Hi,

I am in a similar position now and would be interested to hear how yours progressed?

Thanks


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