Thanks! I needed this info! But I got additional questions.
The situation is this: I work in software development from home. The company who hired me does not have a branch here and they pay me directly from their company based in London through Paypal. We communicate through the internet.

So based on your reasoning, I would still need to pay income tax because even though the physical location of the company I work with is in London, during my working hours I am still here in Malaysia. The keyword being "derived from Malaysia" means "when you were working you were physically here in Malaysia", correct?

My question is this, if my company was already deducting my pay for taxes in London, wouldn't that mean I am being double taxed? Or is there a clause somewhere that says if I'm being taxed in London I won't have to be taxed here?


This post has been edited by JaggedEdge: Feb 25 2016, 05:02 PM

Yes, correct, subjected to Malaysia tax.

I do not think your company deducted taxes behalf on you in London, as you have no file with the UK tax authority, how can they deduct tax there on your behalf?

I just asked because someone told me that if my income was taxed at its source (the company), I won't have to pay income tax for it again here.

My current arrangement with them is they pay me the full amount. Taxes wasn't included in that discussion. I was thinking if this was the case I would ask them to tax me there instead since I might be in a lower tax bracket.


Edit: Also, theoretically, if say I was somehow working and living and paying taxes overseas and then came back Malaysia and continued working with that company here, what happens then?

This post has been edited by JaggedEdge: Feb 25 2016, 05:57 PM

https://www.gov.uk/government/publications/...eaties-in-force

should be this one. if your tax paid in uk is higher than malaysia you dont have to pay, but if its lower then u have to topup. if my memory serve me right uk tax rate should be way more higher. just make sure you keep all the tax paid supporting

No

witholding tax i suppose... but i doubt about that since he did not work there at all.

Developed countries generally have higher tax one. Malaysia's tax is relatively lower as compared.
Why you want to tax at foreign countries tax rate is beyond my understanding.

Once you move back and become tax resident of Malaysia, then subjected to Malaysia taxation ruling already.

You're right. I just checked and the tax rate there is 20% for 0 to 30k a year. There goes that idea

investement in HK stock market, foreign income free from tax?

work as broker @ malaysia, commission received from activity, need declare tax? only bank statement every month, no details

Those investment gain abroad is tax exempted when repatriated back to Malaysia, as it is deemed foreign capital gain income, which is already subjected to respectively countries regulation on capital gain or witholding tax (if).

Broker's commission is subjected to income tax, which needs to be declared.
Bank's statement ( of the commission being banked in) can be the supporting document for those income.

If a freelancer work in Malaysia through an international freelancer site, does the income taxable?

it's taxable.. please read http://www.hasil.gov.my/pdf/pdfam/GUIDELIN...IC_COMMERCE.pdf

Yes, it is based on the statement in bold above.

make it simple, as long as you work in malaysia = taxable. doesnt care who pays u and where they are based, you are 'exporting' your service from malaysia.

okie

okie

Sorry to bring this topic up again, but I have question.

I was now based in Malaysia and work from home (for my own sole-proprietorship company in Singapore) as all my business my delivered online via email.
I set-up a virtual office by only renting a legal office address for client to make send me payment.

Payment from client was directly into my Singapore bank account.
I went Inland Revenue to ask, but the officer said I do not have to pay for Singapore tax, as long as the work wasnt being "produce" in Singapore.
It doesnt matter why i was paid in Sing.

But then I heard foreign-earned income is exempted in Malaysia.
So how ah...? I dont have to pay tax? can someone guide me?

Got such big toad anyhow hopping on the street anot..?

This post has been edited by shingyong84: Mar 31 2016, 07:46 PM

You based in MY, you do work from MY.. doesnt matter if your money go to SG.

You are liable for MY tax NOT SG tax.

MY foreign income exempted only if you are NOT working in MY or foreign investment income.

This post has been edited by gark: Mar 31 2016, 07:49 PM

Thanks for the quick respond

Sorry to ask a silly quest.. how to define "NOT WORKING" in MY eh..?

Yes, I was based in MY more than 185days a year.
NOT WORKING.. hmm.. yeah, most of the time not in working condition.
Not tagging with any agencies. No working record in Malaysia..

My role is basically a middle-man/ art buyer.
To buy Malaysian Art behalf of my company in SG and sell to overseas clients..

So it was actually some other artists WORK, send me soft copy, and i export via email.

This post has been edited by shingyong84: Mar 31 2016, 08:43 PM