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tax on foreign income?
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vlow2yat
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Oct 17 2013, 04:21 PM
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New Member
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QUOTE(Ferrarissima @ Jul 6 2013, 11:45 PM) Sorry to bring it up guys but I have question. I have a business in a tax-free country and I want to TT some of my income (any limit?) to Malaysia - would I be taxed? 1. I am a foreigner under long term social pass visa. 2. I operate (send e-mails) from Malaysia but my company is based overseas. I have a business in a tax-free country and I want to TT some of my income (any limit?) to Malaysia - would I be taxed? It's depends1. I am a foreigner under long term social pass visa. You have to pay tax in Malaysia if you have income. If you are more than 182 days in Malaysia in a year. You are tax resident in Malaysia. Pay according to tax resident rate. If less, you are consider non-resident in Malaysia. Pay at 26% non-resident rate. 2. I operate (send e-mails) from Malaysia but my company is based overseas. Doesn't matter where your company is incorporated or based. As long as you perform the action to generate the profit in Malaysia (send business email, make business phone call, give instruction to oversea staff, develop webpage, take order online, create google adword to make profit etc) or you mange and control your foreign company (director etc) in Malaysia, you have to pay tax in Malaysia.I have a business in a tax-free country and I want to TT some of my income (any limit?) to Malaysia - would I be taxed? If you did not perform any action to generate the profit or manage and control your oversea company in Malaysia, then no need.The key is, where you are and what you do. Company location or tax free or not is not that important. Unless you are physically there. Most countries in the world like Singapore, UK etc follow this rule.This post has been edited by vlow2yat: Oct 17 2013, 05:42 PM
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vlow2yat
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Oct 17 2013, 04:39 PM
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New Member
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QUOTE(cheahcw2003 @ Oct 23 2009, 10:03 PM) Not true, the rule already changed since 2004. To encourage ppl to bring in the foreign income back to Malaysia, u can check with your tax agent, or call up LHDN hotline to claify this. You dont have to pay any tax on foreign income generated in overseas paid by a foreign company even u r a tax residents that stay more than 182 days in Malaysia. Pls also check the following link:- http://biz.thestar.com.my/news/story.asp?f...88&sec=businesshttp://www.publicmutual.com.my/documents/M...emptfromtax.pdfHalf correct only. You don't need to pay tax only if the foreign income is 100% generated without any of your involvement while you are in Malaysia. Eg: You are a shareholder of the oversea company. Not involve in any operation of the company while you are in Malaysia. Or you involve and perform the action to generate the profit while you are in oversea. If you involve in making the foreign profit in Malaysia, you have to pay tax. Eg: Director, owner making decision in Malaysia This post has been edited by vlow2yat: Oct 17 2013, 04:42 PM
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vlow2yat
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Oct 17 2013, 04:47 PM
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New Member
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QUOTE(socratesman @ Oct 25 2009, 12:58 AM) So if I earn several thousand ringgit a month from Google Adsense + USA affiliate marketing activities, I don't have to declare to LHDN?  You have to pay tax if you create your google adsense, join the affiliate marketing, setup your promotion campaign etc while you are physically IN MALAYSIA. You perform the business action here.
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vlow2yat
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Oct 17 2013, 04:50 PM
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New Member
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QUOTE(melthq @ Oct 25 2009, 02:24 AM) income that is deemed derived from malaysia is taxable, since your foreign income is not from malaysia then it is not taxable. Half true only. Unless you did not involve in the profit generating process while in Malaysia. Or you did involve while you are in oversea.
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vlow2yat
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Oct 17 2013, 04:54 PM
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New Member
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QUOTE(yohannes @ Jan 23 2013, 02:28 PM) Another option I'm looking at is to request that monthly salary be TTed directly to my bank account in Malaysia. In this situation, would I need to pay tax since although the money is from a foreign source, I would actually be "working" in Malaysia. Yes, you have to. Double taxation agreement is, if A tax you, then no need to pay tax again to B. If A didn't tax you, then you need to pay to B.
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vlow2yat
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Oct 17 2013, 04:55 PM
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New Member
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QUOTE(cinderlala @ Apr 7 2013, 01:23 PM) Hi guys. I got a silly question hope u guys don't mind - what if i want sell things online but not to Malaysian market (ie, from foreign market) still taxable? Coz i'm thinking of registering a business....most probably the sole proprietor type. TQ Where are you operating from? If in Malaysia, yes you have to pay tax.
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vlow2yat
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Oct 17 2013, 04:56 PM
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New Member
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QUOTE(cherroy @ Apr 7 2013, 03:22 PM) It is not about where you sell your product to, it is about where you perform the sales or operate from. Yes this is the main point.
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vlow2yat
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Oct 17 2013, 05:38 PM
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New Member
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QUOTE(yohannes @ Oct 17 2013, 05:13 PM) 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? You will be taxed on income earned for the period you rendered services in Malaysia even if your employer is not a resident in Malaysia, or your income is not paid in Malaysia. This also applies if your employer sends you to Malaysia for training, operating of machinery, conducting and attending meetings. Taxable income includes salary, bonus, allowances, honorarium, per diem, accommodation, leave passages, and value of any benefits-in-kind (e.g. food, transport) provided to you by your employer.
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vlow2yat
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Oct 17 2013, 06:08 PM
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New Member
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QUOTE(klthor @ Oct 17 2013, 05:54 PM) 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. Well say
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