13/04/2026

BIZ & FINANCE MONDAY | APR 13, 2026

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The interaction between tax residence and taxation in M’sia

UNDERSTANDING the concept of tax residence is fundamental in determining an individual’s tax position in Malaysia. A recent public ruling issued by the Inland Revenue Board (IRB) on the tax treatment of foreign nationals exercising employment in Malaysia further underscores the importance of residence. The distinction between a tax resident and a non-resident individual has clear and immediate consequences. A non-resident is generally subject to tax at a flat rate of 30% on Malaysian-sourced income and is not eligible to claim personal reliefs or rebates. In contrast, a tax resident is taxed on a progressive scale ranging from 0% to 30% and is entitled to various reliefs and rebates, which may significantly reduce the overall tax liability. It is therefore not uncommon for two individuals earning similar income in Malaysia to face very different tax outcomes simply because one satisfies the residence conditions while the other does not. Determining tax residence The determination of tax residence for individuals in Malaysia is primarily based on physical presence. There are four key tests. First, an individual will be regarded as a tax resident if he or she is physically present in Malaysia for 182 days or more in a basis year. This is the most straightforward and commonly applied test. Alliance Bank offers measures to support customers affected by global uncertainties PETALING JAYA: Alliance Bank Malaysia Bhd has announced that it is offering targeted assistance measures to support customers affected by the ongoing global geopolitical uncertainties. In a statement, the bank said, the targeted measures are intended to help ease short-term financial pressures, support cashflow continuity, and assist customers in managing their financial commitments during this period. It added the assistance will be made available to both individual and business customers, including small and medium enterprises, and will be assessed on a case-by-case basis, taking into account customers’ respective financial circum stances. The bank said it will work closely with affected customers to explore appro priate repayment flexibility or other relief options, where necessary, to help address temporary financial challenges. Customers who anticipate difficulties in meeting their repayment obligations are encouraged to engage early with the bank. Assistance can be sought by con tacting relationship managers or reaching out through the bank’s official customer service channels. Alliance Bank said it will continue to monitor developments closely and re mains committed to supporting its customers through this period of heightened uncertainty.

border employment, even a small difference in the number of days spent in Malaysia may alter their residence status and, consequently, their tax liability. This is particularly relevant for foreign nationals working in Malaysia. Their tax treatment is not determined by nationality, but by whether they meet the residence conditions under Malaysian tax law. Those who fall short of the residence threshold may find themselves subject to higher tax rates without access to reliefs. Employers should also be mindful of these rules, especially when managing expatriate assignments or mobile employees. Proper tracking of physical presence in Malaysia is critical to ensure accurate tax reporting and compliance. Misclassification can lead to incorrect tax filings, underpayment of taxes, and potential penalties. Ultimately, tax residence is a key determinant of how the Malaysian tax system applies to an individual. As cross-border mobility continues to increase, understanding and properly applying residence rules has become increasingly important. A clear grasp of these rules not only ensures compliance but also helps taxpayers avoid unintended tax consequences arising from cross-border movements. This article is contributed by Thannees Tax Consulting Services Sdn Bhd managing director SM Thanneermalai (www.thannees.com).

Second, an individual may still qualify as a resident where the period of stay in a particular year is less than 182 days, provided that period is linked to another period of 182 consecutive days in the immediately preceding or following year. This “linking rule”

recognises continuity of presence across calendar years. For example, an individual who straddles two years with a continuous period of stay may still achieve resident status despite not meeting the 182-day threshold in one of those years. Third, residence may also be

OSK Ventures exits Alternatives.pe via Uzabase acquisition PETALING JAYA: OSK Ventures International Bhd (OSKVI) has exited its investment in Alternatives.pe through its fund OSK Ventures ET Fund II Ltd.P. (OSKVETF2), following the acquisition of Alternatives.pe by Japan-listed business intelligence firm Uzabase Inc. Established in 2024, OSKVETF2 is OSKVI’s venture capital fund focused on investing into seed to growth stage Southeast Asian companies. Funded by external investors as limited partners, the fund enables sovereign funds, family offices, corporates and high net worth individuals to access OSKVI’s disciplined investment approach and its commitment to impactful value creation through investments into high-growth technology companies across Southeast Asia. Alternatives.pe is a leading private market intelligence platform providing compre-hensive data and insights on venture capital, private equity, and mergers and acquisitions across Southeast Asia and Australia. Since OSKVETF2’s investment, the company has strengthened its position as a trusted source of intelligence for institutional investors, fund managers and advisory firms seeking deeper visibility into regional private markets. The transaction marks the maiden exit for OSKVETF2 as it continues to cycle capital through its portfolio of Southeast Asian technology investments. During its invest-ment period, OSKVETF2 worked closely with Alternatives.pe to support its expansion and enhance its platform capabilities, positioning the company for long-term growth. “Alternatives.pe has established itself as the gold standard for private market data in the region. At OSK Ventures Inter national, we are thrilled to see this exit to Uzabase, a move that unites comple mentary strengths to redefine how investors access intelligence across Southeast Asia and beyond. Having supported Alternatives.pe’s expansion, we are pleased to see them reach this milestone with Uzabase. “This transaction brings together two powerful platforms to create a more robust, data-driven ecosystem for private equity and venture capital in Asia,” said OSKVI CEO, Amelia Ong ( pic ). The transaction highlights OSKVETF2’s continued ability to deliver value through careful investment selection and active portfolio management, as well as its commitment to supporting companies that contribute to the development of the regional digital and knowledge economy, OSKVI said in a statement.

established where an individual is present in Malaysia for more than 90 days but less than 182 days in a year, provided that he or she has either been present in Malaysia for at least 90 days, or has been a tax resident, in three out of the four preceding years. This rule accommodates individuals with a consistent pattern of presence in Malaysia over time. Fourth, an individual may be deemed to be a resident even if present in Malaysia for less than 182 days in a particular year, provided that he or she is a resident in the following year and has been a resident in the three immediately preceding years. This provision ensures continuity of tax residence for individuals with an established presence in Malaysia. Practical Implications While the rules appear technical, their practical implications are significant. For individuals who frequently travel or are engaged in cross PETALING JAYA: Oasis Harvest Corporation Bhd has proposed a rights issue with free warrants as part of a broader corporate exercise aimed at raising up to RM7.4 million to fund the rollout of a new kopitiam (coffee shop) concept, strengthen the group’s balance sheet and support its next phase of expansion. The proposed rights issue entails the issuance of up to 73.58 million rights shares on the basis of one rights share for every two existing Oasis Harvest shares held. This is accompanied by up to 73.58 million free detachable warrants on the basis of one warrant for every one rights share subscribed. In addition to the proposed diversification into the marketing business, the overall corporate exercise includes a proposed exemption from mandatory takeover obligations that may arise from the completion of the rights issue and the exercise of the warrants. The new kopitiam concept represents a strategic move by Oasis Harvest to enter the high-volume, quick-service dining segment, broadening its consumer reach beyond its existing premium and casual dining portfolio. Concurrently, Oasis Harvest is seeking shareholders’ approval to officially diversify its core business to include marketing services. This follows its proposed acquisition of an 80% equity stake in Contagious (Malaysia) Sdn Bhd, an established event management and public relations agency. Contagious brings a proven execution track record, having managed major corporate projects including the KLIA2 launch, Celcom’s 25th anniversary gala inner, and Tatler

Oasis Harvest to raise up to RM7.4m from rights issue with free warrants

Ball Malaysia. Oasis Harvest executive director Ch’ng Eu Vern said, “The kopitiam concept is an important next step in our F&B expansion strategy. It allows us to enter a larger, more accessible segment of the market while

complementing our existing premium dining brands. At the same time, the rights issue provides the funding flexibility we need to execute this rollout in a disciplined manner, while strengthening our overall financial position.” “Alongside this, the proposed diversification into the marketing business adds another strategic layer to the group. It gives Oasis the ability to build stronger in-house capabilities in branding, activations, and customer engagement, which will become increasingly valuable as our F&B platform grows.” The group said its F&B business remains its primary growth engine, anchored by an expanding portfolio of established brands including De.Wan 1958, Cafe Chef Wan, Uncle Don’s, and Verona Trattoria. The planned kopitiam concept serves as a strategic move to capture the mid-market, high-volume quick service segment, acting as a strong counterweight to its existing premium and casual dining operations. Looking ahead, the board believes these combined proposals place Oasis Harvest on a much stronger financial and operational footing. The expanded capabilities will allow the group to capitalise on Malaysia’s resilient consumer and tourism-driven economy, advancing its transition into a highly integrated F&B and lifestyle group.