Aiyah... There is no way for them to check. Unless u start transferring huge sum of money back to Malaysia. No need declare LA. Start investing your money in Singapore don't bring back Malaysia. No tax.

Not working in Malaysia if you stay less than 182 days in Malaysia.

From MY Tax point of view: U should be deriving income from MY based on your role/function as a middle-man/art buyer in MY. Since you are being remunerated for that role to your clients the income earned during your stint in MY shud be taxed here.

The time period of > 182 days only determines whether u shud be taxed as a Tax Resident or not.

Since u have been in MY for more than 6 months, I assume u have been travelling back and forth a few times and did not stay in MY consecutively for the entire 6 months.

If you didn't use any Professional Visit Pass or Employment pass to come in to MY for that 6 months duration, then it will be difficult for IRB to prove on your income derivation activities unless you declared to Immigration that your intention to stay in MY for X no. of days was for work/business purposes.

100% of your fees charged to your customers will be paid to your sole prop in SG?

this sort of answer is really scary.

I am a Malaysian, i stayed in MY for more than 6 months consecutively except some minor travelling to Singapore to do some banking within a day.

I have a team of freelancers in MY who produced me artwork, and my role is just order them to produce and sell to 3rd Party in SEA.
All 100% fees were paid to my sole-prop registered company in SG.

This post has been edited by shingyong84: Apr 2 2016, 03:47 AM

Regardless of whether you are a citizen or not, ultimately your taxes in MY depends on how long a period you were working and deriving your income from MY (> or < 182 days to determine tax rate based on tax residency), regardless of where you are paid and who is your employer or where your entity is officially registered or where the contracts were entered into.

You should mainly be taxed in MY, since you have established a precedence of working mainly in MY. Your passport entries and other business documents and emails should be able to demonstrate this clearly.

Cost for hiring freelancers is a cost to your business, doesn't change the fact on where you must be taxed in the end.

The only thing you need to be mindful of is whether in the past 2-3 years you have been declaring your taxes in MY as nil and declaring your taxes in SG with income. A sudden change in tax declarations would prompt/highlight to the tax authorities on your tax file(s). You must have ready on hand all the necessary documents to justify your basis for tax for both countries.

E.g
In MY: 2014 - nil tax, 2015 - tax at say 20%, 2016 - nil tax
In SG: 2014 - tax at say 15%, 2015 - nil tax, 2016 - tax at 15%

If you have been declaring your taxes in MY all this while with none in SG then no issue. Key thing is consistency. If you aren't consistent as per the above example, then you must be able to back it up with the relevant supporting.

Thanks for the clarifications, guys!

This thread is really helpful!

I'm in a rather different situation. I'm a Malaysian but not in Malaysia, and by the tax definition I'm a "non-resident". I work in a foreign country and they pay me for my services, but I am curious to know this (in all cases, I work overseas)

Assumption A: I sign an individual work contract in this country with my employer, as an individual
1. If they pay me in this country, I pay personal tax here (which is more than 30%). That's obvious.

Assumption B: I sign a service contract between my sole proprietor company & my employer
2. I have a sole proprietor company registered in Malaysia. What happens tax-wise if my sole-prop company bills my foreign employer (in lieu of salary), invoice from Malaysia for services rendered outside of Malaysia? What tax do I pay?

Assumption C: I sign an individual work contract in Malaysia with my foreign employer, as an individual
3. Next scenario, what if my employer pays me as an individual for services rendered outside Malaysia, but the payment method is TT to a Malaysian bank account?

I understand that sole proprietorship means that I'm taxed as an individual. But I'm unable to find information what happens if I'm a non-resident, no one seems to know which category I'm in. Do help!

Hey guys, please help me.

I am Malaysian and living in Malaysia but working for a China company through internet,
my income is transfer into my bank account in Malaysia after deducted the amount of tax in China,
how can I avoid double taxation in Malaysia?

Thanks!

1 question here, from previous comment i realized that foreign income will be exempted tax, but should we declare the income??

If no need, what will happen if they found the money is come from nowhere as i did not declare the income.

hi there, i have a Q here as well. Since there are many experts here.

I'm always confused whether is my income taxable or not. Here's the scenario,

1. I have a regional role that supporting 6 markets - in SEA. I travelling often almost travel out of malaysia for more than 50 days in a year.
2. My contract was signed off by our main HQ that based in Singapore. However my salary package is stipulated in MYR.
3. The salary is direct TT to tiger bank every month.

so is my income taxable in this case? thanks for your help in advance!

definately taxable by our goverment...

Dividends from US stocks are taxed. You don't get taxed for capital gain, but they will take 30% from your dividends

open an account on BOA or BOC or others bank.
example:
withdraw all to BOA account and transfer to local bank if bank freeze the money and ask where is the money from. just tell them what u are doing and if they wan trading statement just give them.

Hi bro,

I do have some question here & hope our expert here could help to advise.

I started working in Macau since 15 July 2014 till today. However my contract in Macau will be ending in end Mar then I will be going back Msia. All my salary are paid in Macau currency to my Macau bank account after deducted taxes based on Macau law.

I plan to declare my macau income in Msia. I am sure i will not be taxed in Msia for the year of 2015 & 2016 as I stayed in Macau for more than 186 days per year.

My questions are,

1. Will I be taxed by LHDN for my macau income for the year of 2014 as I stayed in Msia for more than 186 days before going to Macau to work on 15 July 2014?

2. I am going back msia this coming april and most likely will be staying for more than 186 days in msia. Will i be taxed by LHDN for my Jan-Mar 2017 macau income ?

As I was told by my friend that I will need to pay tax to LHDN for my oversea income (even my income have already been taxed by Macau Government) if I stay in msia for more than 186 days a year.

Thanks in advance for your expert advice.

Hi there,

I have a similar question as well. So i will copy the scenario above.

I'm confused whether is my income taxable or not. Here's the scenario,

1. I have a regional role that supporting 2 markets - in SEA. I travelling often almost travel out of malaysia for more than 100 days in a year. I would be staying in malaysia but working out of Malaysia.
2. My contract was signed off in Asia HQ that based in Thailand but the mother company is based in Denmark. However my salary package is stipulated in EURO`s.
3. The salary would be TT to my account, that means EURO`s and it would be automatically changed to RM. any idea how will the conversion rate be?
4. How to submit documents from LHDN? Need some extra supporting documents from the company?
5. I wont be paying any tax in Thailand nor Denmark, if not mistaken.

so is my income taxable in this case?

Situation 1:

- Work with China company at home
- Received salary every month via Paypal

Situation 2:

- Work with Hong Kong company at Malaysia factory at representative
- Received salary every month via TT


In this two situation, I need to pay tax?

Anyone answer the question above?

Yes.

Both are deemed income derived in Malaysia.