Hi guys. I am new, hope fellow members can help me out.

I have a question on an employee who receives free stocks of the parent company in the US. If these stocks were sold in the US, and the proceeds is TT back to Malaysia, does this qualify as "foreign source income" under IRB laws? It is actually a benefit of employment, aka perquisite. Please correct me if I am not wrong.

Thank you.

It doesn't matter the goods is sold at where, the one matter is the place you work.

It doesn't qualify as foreign income, unless you are working at US, then different story.

Sorry, my mistake. Let me clarify. The employee is working here in Malaysia for a subsidiary company of a US company. He receives free shares of the parent company in the US. If he sold these shares in the US and bring the money back to Malaysia (TT). Is this money considered foreign source income or not? It is not from a business activity.

You have already answered the question on your own statement... 

Working here -> derived income in Malaysia -> subjected to Malaysia taxation.

Working in a US company /= working abroad.
Receive money from US /= derived income at US.

So exemption on foreign income is not applied for the above example.

The free shares situation should be similar to ESOS given to employee.

Hi Guys,

Need your advice on my situation,

1) Working in Macau with Macau company.
2) Received income in Macau currency and bank into Macau bank account.
3) Bring back to Malaysia via TT or cash(sometimes)

Is my income above taxable by Msia IRB?

Thanks!

I have a different situation.

I am an investor in a health screening product by a Malaysian company. The health screening products are brought to China. Obviously for every test conducted by this health screening product there, there is a payment received. As an investor, I received a percentage of this payment so we call this a test income.

Since this test income is from a health screening product conducted in China, this means that the source of the income is overseas. As I understand, with effect from the year of assessment 2004, income received in Malaysia by an individual for a year of assessment that is derived from sources outside Malaysia is exempted from tax.

This means that when the Malaysian company pays me the test income to my Malaysian bank account, I should not need to pay any tax on it. I am prepared to open a bank account in
Singapore so that I can receive the test income there if it helps.

Anyone has any opinion on this?

Not taxable.

Are there any citation from any Section on Acts etc that you can share with me?

I am facing the similar situation and am considering the implication for bringing a lump sum of foreign money back to Malaysia from HK

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!

One question, I am new here, hope some members can help me out.

I have a question, if I am a shareholder of a foreign company and they pay me dividend in a cryptocurrency/bitcoin.

1) If these bitcoin were sold in the that foreign country and get taxed there and i channel it from foreign exchanges/bank to my bank account here in Malaysia, will I need to pay another income or declare it?

2) and  what if I sell the bitcoin in Malaysia and directly into malaysian account, ?
'And when Im selling bitcoins in Malaysia, for example on Luno or XBit Asia, basically im selling a digital asset within Malaysia, to someone inside Malaysia, and getting the payment in Malaysian Ringgit, and then withdrawing from the exchange's Malaysian bank account to my own Malaysian bank account.' This one is for sure need to pay income tax right eventhough i get it as a dividend?
does any of this situation  qualify as "foreign source income" under IRB laws?

And which one is the best way to bring back the money?
Thank you.

I am currently in the same situation as her, except that in 24 days I will be a tax resident in Malaysia. If that's the case, what do I do with the income derived from a service exported to Italy and performed in Italy. ?

What if I am neither a tax resident of both Malaysia and Italy ? Will I be able to pick just one to pay tax to e.g Malaysia and claim that it's a foreign income and get exemption ? Does it work this way ?

Thanks for your input !

You are non-resident under Malaysian tax law if you stay less than 182 days in Malaysia in a year, regardless of your citizenship or nationality.

Non-resident individual is taxed at a different tax rate on income earned/received from Malaysia.

You don't care whether the service is exported or not.
It is always depends where the income is derived.
You make a deal in Malaysia and delivered goods/services to overseas customer, it is still deemed income derived in Malaysia.
If not, all export company don't need to pay tax already. So the word "export" is irrelevant.

Non-tax resident still needs to pay tax one, as long as income is derived in Malaysia.
While for Italy, then you need to look on their specific ruling on non-tax resident, whether it will be charged as witholding tax or whatever.
http://www.hasil.gov.my/bt_goindex.php?bt_...sequ=1&bt_lgv=2

Hi,

Need advise on the following, I’m a Malaysian residing in Malaysia and currently employed by a foreign company registered in Dubai, appreciate advise for the following;
1) my job requires me to travel overseas so I get a travel day and work day allowances and normally it’s a 3 day job, I’ll send them invoices for service rendered either at job completion or monthly. Am I liable to pay tax....
2) the job requires that I may need to check/correct/submit the report part in Malaysia so does this meet as job overseas....

Appreciate any advise on this matter...

actually its very simple, they tax you base on how and where you earn your money. If you earn your money working in malaysia, doesnt matter who pays you, you are taxable. unless you work in sinagpore, bring the cash back into malaysia, then LHDN would not tax you. Eg you work in SG, but your employer bank into your tiger bank in malaysia, then they will not tax you since its not derived from malaysia. the word derived from malaysia is the key of this whole thing. for your case, its derived and received in malaysia. only income received in malaysia but derived outside malaysia is exempted from income tax.