Already posted on this issue before. I received email from LHDN on this few months back and yes, they know the existence of your foreign bank accounts before you going to them.

When queried on the source of the overseas fund, told them it's my salary, they send me back without taking my details. The target is on undeclared overseas income. I believed this is already on the newspaper, not sure why you are still confused.

I'm not confused... i went to LHDN asked about this issue too. If its for your salary...sure no problem. But not everyone open an account is spore has a job in spore. They may open for other reasons...that... they need to be keep record for the source of the money.

I collecting rental income from SG property and rentals deposit into my sg bank. I paid rental income tax to SG govt.

Do I have to mention it in LHDN malaysia? i haven't wor

Is there any tax person provide me your service?
Thanks

This post has been edited by frostfrench: Jul 10 2019, 03:06 PM

Don’t think so...income is not derived in Malaysia

Malaysians do need to provide Malaysia tax file number to their overseas bank. When this is done, LHDN have access to the overseas banking details of Malaysians. Vice versa for foreigners who have bank accounts in Malaysia, their income tax authority of their home country can access their bank details in Malaysia

We do not need to specifically tell LHDN we have overseas bank accounts. Because they already knew it. They even knew the amount you have in overseas bank accounts without needing you to inform them

Don’t need to mention. If they want, they will ask details from you. If that happens, just give them details of your Sg property and rental income. LHDN won’t tax your Sg rental income so no problem for you.

Thanks for the reply.

Monday, three days ago : https://www.thestar.com.my/news/nation/2019...RIlqZhAqEJPC.99

Tuesday, two days ago : https://www.thestar.com.my/news/nation/2019...axman/#cxrecs_s

Thursday, this morning : https://www.thestar.com.my/opinion/letters/...n-tax/#cxrecs_s

Looks like everything we discussed earlier is WRONG now,...

Correct lah bro....the taxman is referring to any undeclared or under-declared income taxable in Malaysia, which was transferred out and hiding in overseas bank account, will be punished. Because they know everything with the new system.

If your money transferred to overseas are all legit and paid all Malaysian taxes, no problem.

And if your income derived from overseas are not subjected to Malaysian tax, no problem also.

The first 2 articles were confusing. Even the accountant in the third article is confused by what the deputy minister said in the first 2 articles.

Chill bro....unless you have not paid all your taxes

Based on your bolded statements, our conversations earlier were wrong ! Where got 'correct lah',... ?

You and I, our conversations earlier, and the accountant in the third article all think we are correct ! But THAT DEPUTY MINISTER THINKS HE IS CORRECT !

So,.. how can we simply say we are correct if a QUALIFIED DEPUTY MINISTER THINKS HE IS CORRECT ?

By the way, bro,... our own taxes in-country is the first thing we have to cover closely if we are to invest overseas. I don't think any overseas investor would slip in this way,...

Let's see what happens in a few more days,if the IRB clarifies the above two articles, or just remain quiet ONLY.

If you dissect what the minister said, we are correct lah

It’s just some people, even an accountant, are confused with what the minister said

Which part of the minister’s comment are you referring to ?

" Malaysians who fail to come forward to declare their overseas incomes may face........ ", warns Deputy Finance Minister Datuk Amiruddin Hamzah., AND,

" If they (Malaysians) do not come forward to declare their overseas income under the.......... ", he said when replying a supplementary question raised by Wong Kah Woh (PH-Ipoh Timur) in Parliament Monday (July 8).

Let's put everything into perspective and paint a whole picture.

In Special Voluntary Disclosure Program (SVDP, introduced by LGE in 2019 budget) context, the Deputy FM is not wrong lah. It's just that he concentrated on the overseas part, whereas SVDP is targeting all undeclared and under-declared income, whether local or overseas. The deputy FM should also include the local income in his reply. That is the confusing part.

If you read the overall idea of SVDP, then there is no more confusion. This big 4 accountant is better in explaining what LGE wants https://www.ey.com/Publication/vwLUAssets/e...ure-program.pdf

So, despite what the deputy FM's confusing and out of context statement, we are right lah

In essence, if a person did not declare, or under-declare his income (be it local or overseas), he is given a good opportunity to make good at minimal penalty before 30/6/2019

If you have declared all your income (local and overseas), then there is nothing else to declare.

For overseas income, it means those that are taxable in malaysia. Like some freelancer/ebay/taobao traders working in malaysia full time through internet, but get paid into their overseas account. These people should be taxed by LHDN. But because previously LHDN don't know the overseas bank balances, they can escape tax. Now LHDN can access their overseas bank account, they cannot escape anymore.

Another example, you as a lawyer get a S$1m advisory job from a USA company. Your firm researched, prepared and spent 1000 man hours in Malaysia. After the report is done, you send your final advice to your client in USA. But you ask your client to pay your S$1m legal fee into your DBS Singapore account. Previously LHDN has no access to your banking info and you may be able to escape. But now cannot liao......these are the income the deputy FM is talking about....

Whereas income like share market capital gain/dividend, income already being taxed by the foreign tax authorities and all other income not subjected to tax by LHDN, there is no need to specifically declare to them. Just like our share market capital gain/dividend/interest income derive in malaysia, we also never specifically declare to them until they ask us. Same principle applies....

I like your explanations, bro,... though I have not read the whole thing and digested the infos within.

I hoped you are right !

I hoped they are thinking the same !

Thank you, bro,....

good to see that, hope this is all correct.

How about SG property rental income? I have pay my share of income tax to SG govt. But haven't declare it to LHDN here.

Correct lah, bro



You already paid tax in Sg. Under the tax treaties between My and Sg, you should not be taxed twice. So, your Sg rental is not taxable in My. You don’t need to declare to LHDN either.

But since you have transactions in Sg bank account, LHDN will have the information. Hence, one day LHDN may send you a letter to ask for your source of income. When the day comes, you just provide information to them, like property details (S&P), how you bought it (your source of fund), rental agreements etc. Very important to keep all documents to prepare for their audit.



Back to the topic, for those who still want to open a Sg account, do take into account that your overseas bank account may be the leads for LHDN to audit you one day. If you don’t have overseas account, everything is normal. Just because you have overseas account, buta-buta you are under their radar. Then you have to spend time compiling your documents to prove to them your income is legit and paid all your tax. Mind you they usually look at a few years so if your filing is not good, then you kena pay tax and penalty for income you have no documents to justify

My bro here has become an international tax consultant,...

For the documents, if any of you kena audit, you can print out the statements from your internet logons. Hence, please ensure you have internet capability to generate your documents if need be. NO need to keep hardcopies. I think the main problem will not be getting hold of the documents to substantiate, the bigger probem is IF the auditing officer starts behaving like he does not understand what you tried to explain to him, and he insists on taxing you,....

Or perhaps, he TRULY does not understand the foreign documents, then you end up trying to teach him a to z.

Yes, hard copy documents like S&P, rental agreement, bank transfer slips, etc scanned and keep soft copy also. Other downloadable soft copy documents like bank statements, contract notes, dividend vouchers must keep safely in computer. Make backup copy. Have to do the filing diligently and consistently otherwise if a few months never do, difficult to retrieve anymore.

You are right bro, the worst case will be a person kena assigned a bad officer who tax first talk later....there are such officers..then the person has to pay first, then explain, only they process the claim back...

I wanted to apply for internet banking with my a/c.
saw this.....
did you guys provide that info?
my guys feeling is that it is 'fishy"

https://internet-banking.dbs.com.sg/ibAPL/W...EATE_IB_PROFILE


Attached thumbnail(s)

While the process look strange by our i-banking standards, the page legitimately belongs to DBS (have trusted URL cert).

In anyway if you still have doubts perhaps hop over to HWZ where DBS account holders are more abundant to advise better.