Hey guys,

Till today I am still confused about this.

I am living and working from home in Malaysia. My company is in Singapore. My salary is TTed to me on a monthly basis from Singapore but to my Malaysian bank account.

In this case, is my income taxable?

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?

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?

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

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

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...

May I add that there's some minor correction to be made to your statement. The statement "Only income received in Malaysia but derived outside Malaysia is tax-exempt" is not necessarily true in all cases. If the employer is a Malaysian company and sends the Malaysian employee to a Korean company (secondment) for work purposes eg: 2 years, and the employer completely remunerates the employee, he would be subject to Malaysian tax. In this case, although income received in Malaysia but derived outside Malaysia, still, it is taxable. Hence, your statement is not quite right.

Alternatively, if the Malaysian employer sends the employee to Korea to work closely with a Korean company, and the secondment agreement is such that the employee shall be remunerated by the Korean company for the 2 years, then the scenario is that the work done overseas is for the Korean company. This will constitute income received in Malaysia but derived outside Malaysia.

In a nutshell, two conditions to fulfill the criteria: 1) Employee shall not perform work in Malaysia  &  2) The Employer shall not be Malaysian employer (if the employer is any foreign companies based in Malaysia, this automatically means Malaysian company)

Well, I'm afraid it is not to confuse people. It is the law, and the responsibility lies on the individual to research the laws of the land in detail and plan the "arrangements" accordingly to safeguard oneself from taxation.

I'm attaching a Malaysian employee secondment to overseas scenario. You may want to read it at your leisure.[attachmentid=9564907]

I see. But if I'm dealing with financial products then this doesn't apply right? After all everything is capital gains. But a profit nontheless. So it would be reported as a profit from financial trading.

I don't see how transfer pricing is applied here.
I'm basically saying:
1)I'm a director of xyz swiss. xyz swiss is a financial trading company registered in switzerland and pays tax there.
2)I put money into xyz swiss under my personal capacity for investment purposes. Not as a director expanding his company.
3)Profit from xyz swiss is sent back to me in malaysia as investment gains every quarter under my personal capacity.

Bonus question: 4)If trading profits are repatriated fully, meaning the company doesn't report any gains or losses, and thus is not taxed, is this considered fraud? Because:
1)Swiss company doesn't gain or lose anything thus not eligible to tax in swiss.
2)Yet money is coming back to me in malaysia as capital gains from overseas investment. Therefore not taxable.

That's right, I am paying tax in SG for my SG salary and tax in MY for my MY salary. I travel to SG once every few months. Is this considered double taxation?

Hi Cherroy,

Hope you're still around and active.

My situation is similar to some of the existing cases here.

1. I work for US company, get paid from Singapore TTed into my Malaysia account.
2. I based in Malaysia.
3. The company is not a registered company in Malaysia.

I know that I'm a taxable person in Malaysia. In this case, how can I get EA form from my employer? As in EA form, employer need to state down their company registered number. Any other format of the file similar to EA form accepted by the LHDN?

Hope can get an answer from you.

Thanks.

Thanks for the heads up, I just check with my director and theoretically I work under SG company, cause my pay is come from a SG registered company.