Are you sure contractors are force to pay tax?
My current TL is a contractor, I don't know the exact amount he is getting paid but I am estimating around 300usd/day. He doesn't getting any benefits from the company.IE no EPF and EA form. Basically my company act as an agent/headhunter.

He is usually on a 3 months contract and he don't pay any taxes and yes he is a malaysian.

OK I don't know how the tax system work, in our line of work we usually work overseas. So the agent company will pay around 300usd/day to cover the salary/living expenses and other misc stuff. So we are free to fill in whatever salary that we get on the tax return form.

Now tell me, are we supposed to pay Malaysia tax if we are working oversea most of the time since we have to fork out for work permit & visa and pay oversea tax while we are working there.

This post has been edited by yieloon: Jun 26 2008, 05:17 PM