When creating a foreign employee Worksy account, you must complete:
- Income Tax Resident
- 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.
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