Income Tax Resident & Tax Category Setup for Foreign Workers

Modified on Mon, 6 Oct at 10:53 AM

When creating a foreign employee Worksy account, you must complete:

  1. Income Tax Resident
  2. Tax Category 


Leaving them blank could impact wrong PCB/MTD deductions and errors in CP8D, EA, CP8A forms.


Path: Employee Profile > Bank & Statutory.



Income Tax Resident:


Choose from these categories

  • Resident: Local/foreigners that stay in Malaysia more than 182 days in a calendar year, or meets residency rules.
  • Non-Resident: Local/foreigners that stay less than 182 days in Malaysia, taxed at a flat 30%, no personal reliefs.
  • Returning Expert Program (REP): Approved individuals taxed at a flat 15% for 5 years.
  • Knowledge Worker at specific regions:  Approved individuals taxed at a flat 15%.


More info: LHDN Tax Treatment: Residents & Non-Residents


Important: Update Income Tax Resident once the employee reaches 182 days in Malaysia, as their tax status and deductions will change within the same year.



Tax Category:


Select the employee’s status correctly for PCB/MTD.

  • Single

  • Married & Spouse not working

  • Married & Spouse working

  • Divorced / Single with kids

  • None


Note: If your employee does not have Income Tax, you may put the tax number field as 11 digits including "IG" For example IG00000000000



For foreign workers KWSP/EPF contribution, you may refer this guide: EPF Contribution for Non-Malaysian Workers (Effective October 2025)



We hope this explanation clarifies the matter. If you require further assistance, please don't hesitate to contact our support team.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article