Tax Calculation for Non-Resident Employees

ByteHR supports two tax calculation methods for payroll: the standard progressive rate for Resident employees, and a flat 30% rate for Non-Resident employees.

Once you mark an employee as Non-Resident, the system switches to the correct calculation method automatically. You do not need to adjust any tax settings manually.

Setup: Mark an Employee as Non-Resident

1. Go to the employee's profile
2. Find the Residency Status field
3. Select Non-Resident
4. Save

ByteHR will apply the 30% flat rate for that employee starting from the next payroll run (or the current one if payroll has not been processed yet)

Key point:

• EPF, SOCSO, and EIS are still deducted from the employee's take-home pay as normal. They are just not used to reduce the tax calculation.
• The tax is calculated on the current month's income only. There is no projection to an annual figure.
• If the employee later becomes a Resident, any taxable items for resident you have already entered will automatically apply. You do not need to re-enter them.