other than "counter checking" with the tax form,....

for it mentioned in earlier link,...
"IRB will review and examine the income information of Malaysian residents deposited abroad that has been received through tax information exchange agreements with other countries."

for most Malaysians working in Spore but stayed in JB, i think they don't submit ITR form to LHDN.....
so i guess LHDN does not know about the foreign a/c if LHDN just rely on the "tick" for disclosing in the form...

yeah... also if you have income locally but working and paying tax overseas... you need to pay local tax too... maybe it's related to this

G tarak money and implements this rule.. KNS

How this new rule applies to those who works in Singapore and is taxed there and then remit money back to Malaysia?

Claim double tax deduction or need to pay tax again?

This post has been edited by jack2: Nov 17 2021, 06:50 PM

i happened to read this earlier...

"As for the impact on individuals, Deloitte Malaysia said one common situation involves rental income earned by a Malaysian tax resident from a real property located outside of Malaysia.

Citing a rental income from Singapore as an example, Deloitte Malaysia said, this income is an FSI and would not be taxed in Malaysia presently, but from Jan 1 next year, the income remitted to Malaysia would be taxed.

“In this case, both countries have the right to tax.
To avoid double taxation on the same rental, Malaysia, being the country of residence, would grant foreign tax credit based on a prescribed formula that takes into account the taxes paid in Singapore against the Malaysian tax payable,” it said.

However, it noted, the Malaysian resident landlord would still need to pay the net tax to the Malaysian government.

Another common situation, according to Deloitte Malaysia, involves a Malaysian who lives in Johor Baru and commutes daily to Singapore for work.

“He draws a salary from his Singaporean employer. Under the tiebreaker rule, he is a Malaysian tax resident given that his permanent home is in Johor Baru.
Before Jan 1, 2022, he can remit his salary into Malaysia without paying Malaysian tax.
Under the new rule, his remittance would be subject to Malaysian tax,

“The Singapore taxes paid can be used as a set-off. However, he would need to top up the net additional tax and pay the Malaysian tax authorities. In short, there would be an incremental tax,” it added.

https://www.theedgemarkets.com/article/delo...xation-malaysia

foresee implementation issues that needed ironing out...
page 6
https://www.pwc.com/my/en/assets/publicatio...-2022-Part2.pdf

Who the SH to implement this rule and is very complicated to tackle and trace everything

Bros,...

"Sekiranya berdasarkan semakan, didapati pendapatan yang disimpan di luar negara yang berpunca dari Malaysia masih belum dilaporkan, taksiran tambahan boleh dibangkitkan berserta dengan penalti selaras dengan peruntukan Akta Cukai Pendapatan 1967."

It keeps going back to the above expression in bold. How would you define : berpunca dari Malaysia ? I think if you do freelance work for a foreign entity, that would be : berpunca dari Msia.

If you invest into an SG REIT which has nothing to do with anything form Msia,... nothing berpunca dari Msia anymore.

Secondly,.. why is there no more mention of the expression : remitted back to Msia ?

from this article,....it seems like no remit back will also kena??

“After the expiration of the period, IRB will review and examine the income information of Malaysian residents deposited abroad that has been received through tax information exchange agreements with other countries.

“If the review found that the income kept abroad originating from Malaysia has not been reported, additional assessment can be imposed together with penalties in accordance with the provisions of the Income Tax Act 1967,” it said.

Therefore, IRB said taxpayers are encouraged to participate in this special programme in order to update their tax position.

https://www.malaymail.com/news/malaysia/202...sidents/2021425

The activities performed to earn the overseas income is now being zoomed down into. The question becomes, is that income : berpunca dari Malaysia ?

If we decide that the income is : berpunca dari Malaysia, THEN ; you need to report that income and subsequently, when remitted back to Msia between Jan and July 2022, you would be taxed ONLY 3% onto that income. BUT,... if you remit back AFTER July 2022 without declaring earlier that you have such income, you would be penalised.

that means money had to be "reported" for taxes (money that had been declared and subjected to taxes) BEFORE taken out of the country and the details had to be kept and produced as a proof of the origin of the source of money when the time comes to remit them back to M'sia?

if that is the case, then the money will not be subjected to taxes when the money are brought back to M'sia?...

if NOT, then it would be considered as foreign source income that had not been reported and will be taxed?

Ok, then investing in SREITs/US shares etc. are fine then. The source is not from Malaysia but SG/US. Indeed no clarity on remittance. Now still wondering whether not paying tax and not remitting back will be a crime or not.

NO !

Additional assessment and penalties can only be imposed IF you remit back after July 2022 IF you did not report this income : Yg "berpunca dari Malaysia" between Jan 2022 and July 2022.

The way the article was written is structured to make the reader THINKS all incomes generated overseas will be taxed ! Msia does NOT practise a Residential-based Taxation System, nor does it practise a Citizenship-based Taxation System.

Bro,... the FAQs in the IRB website later will single out ALL the income-types which will be categorised as : Berpunca Dari Malaysia. If our income-types here are not mentioned, then we do not need to declare. But logically,... why would SG REIT dividends be called as : Berpunca Dari Malaysia ?

This post has been edited by MUM: Nov 17 2021, 07:52 PM

I am still thinking abt how they will account for this aspect : money being moved out to make more money outside. What is the accounting treatment for this,..

In my many posts this evening, I was just focussed on what activities were incurred to generate the income. Factors as in : where were the activities generated, who were involved in the activities, what resources used and the like. If the factors here have NOTHING at all to do with Msia, then,..... that income generated does NOT berpunca dari Msia.

Just to keep it simple.

" so, IF you remit back after July 2022 IF you did not report this income : Yg "berpunca dari Malaysia" between Jan 2022 and July 2022.,...then NO Additional assessment and penalties will be imposed?? "

Yes.

The assessment then will be what they will implement after this 7-month period if you remit back.

Did anybody read anywhere saying that ALL FOREIGN INCOMES MUST BE REMITTED BACK ?

Did anybody read anywhere that ALL FOREIGN INCOMES will be taxed regardless of where they are ?

Did anybody read anywhere that Msia will impose INTERNATIONAL TAXATION ?

Wrong, income come from Australia, Australia has the right to tax, not Malaysia!
Dont be like lebai lah
...bullshit people

Bro,... even if you disclose the money was from Msia, taxation contention shld still not come into play here because this money that you remitted out is post-tax, for which you have diligently paid tax onto earlier, before you have this extra funds to send out, right ?

Why shld the jurisdiction have any prejudice towards this money of ours that we TT'ed out earlier ?

Well,...what we are writing here are monitored by the LHDN.

So,... no problem,... let's say things out openly,.. and be very clear abt things so that we can do all we can to follow all rules and regulations as well as we can.

I am trying to find that posting (I think it was from MUM) that mentioned abt dividends paid out by funds based in Msia. These funds earn their income from overseas instruments and have their dividends remitted into Msia, then subsequently pay out to local Msian investors.

The above funds will be hit !

It's better for the investors to start opening accounts overseas and investing into the foreign instruments directly rather than thru a locally-based fund in Msia.