I sympathise with folks out there who are not aware of the LYN forum at these times. Sure,.. everybody can read news everywhere,... but the digesting part of the news will be difficult.

bear with me abit longer,...

regarding your this input,...."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."

i read this article,...
https://www.theedgemarkets.com/article/delo...xation-malaysia

"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."

from the above example in that article,...
Factors as in :
where were the activities generated, ....Spore
who were involved in the activities, Rental income in Spore
what resources used and the like. Properties. in Spore..

Thus the factors here have NOTHING at all to do with Msia, and,..... that income generated does NOT berpunca dari Msia."......but according to that article,...the income remitted to Malaysia would be taxed.

I think should make it simple. Any money remitted back to Malaysia if not from investment should be taxed while investment remain tax free. Unlikely my voice will be heard. Oh well.

You are right in what you wrote in the above, Mum,... absolutely right.

Well,... what Deloitte wrote was before what came out this evening in The Malay Mail. What came out this evening in The Malay Mail contradicts with what were announced by the IRB earlier (hence, I asked the question : what happened to remitted back to Msia ?), and Delloitte's comments above were based on what were written earlier.

If you look closely at the different comments by the different accounting firms, they started to use the same terms after we used them here in this forum, as in the different taxation systems, etc,... looks like our discussions here are front-running their articles.

What was written this evening in The Malay Mail implies that IRB wants to assess AND TAX ALL incomes generated from resources in Msia regardless of whether you remit the monies back to Msia or not !

The message is totally different from what were disseminated earlier,...

There is no more mention of the expression : remitted back to Msia !

This is bad !!

Wait for official lhdn faq. Then we will know how we are being tax.

found that article,..

Implications on Malaysian Investment Funds
Malaysian funds that invest abroad will also be disadvantaged, as the foreign income remitted by the funds is now taxable.
Investors may then invest through foreign funds or foreign vehicles, instead of Malaysian funds, as the additional tax cost will reduce the investment returns.
Ultimately, this would result in movement of funds abroad to invest in foreign funds.
The proposal introduced in Budget 2022 exempts non-residents from income tax on foreign income remitted into Malaysia.
https://www.theedgemarkets.com/article/look...nsourced-income

found this new one too....more detailed,,,
Budget 2022: Impact on investment management

excerpt,
The repeal of this exemption could have significant implications on the post-tax returns of investment vehicles in Malaysia that have built up a portfolio in non-Malaysian securities and instruments.

Where these investments currently provided tax exempt income in the form of foreign interest, coupon, and dividends; moving forward, this income would be taxable at 24% effective from Jan 1, 2022.

In the short term, this means a 24% haircut on the investment returns of these vehicles will be borne by the investors when the profits are distributed.

https://www.thestar.com.my/business/busines...ment-management

eh... this thread suddenly hot n heavy...

no. if you expat/tax residence outside... and say got rental income in Malaysia... quite sure a lot of ppl don't disclose, lari tax n send money out... we're supposed to pay non-residence flat rate tax... des why they talk about punca di Malaysia and penalties...

this is different from some of the other discussion here... separate topic from foreign sourced income...

This post has been edited by dwRK: Nov 17 2021, 09:39 PM

24% haircut ,... hmm,... all these years when I KEPT ADVOCATING Msians to open foreign accounts, bank and brokerage, etc,... is RIGHT !

Bro,.. to this topic we are talking here,... it's hard to write. We're going in separate directions. Anyway,...

To ur second paragraph,.. I know very well what yu are talking abt,... many pals in Aus doing this,...but I can't understand how you relate this to punca di Malaysia,...

To ur third paragraph, you are right. It's quite a different matter,... but you can relate too,.. why, because, you were the one who said this earlier,... what abt the money we sent out earlier and then bring back in 2022 and beyond ? Why shld we be taxed for our own money here, right ?

a real shit show lah mof and irb dragging us through... to be fair to us here, the tax accountants and lawyers are also scratching their heads based on headline statements by mof/irb...

anyways wait for irb faq ahh... no point wasting time on suppositions... can't beat stupid...

i'll continue to move some monies back before year end... but like most of us will still keep some offshore

Finance bill second reading today.

https://www.sinchew.com.my/20211118/2022%e5...bb%8a%e6%97%a5/

Yes, just attended a talk conducted by tiger bank and one of the big 4s.

Yes, all foreign sourced income remitted back to msia will be taxed.

income arising from dividend, interests, etc, but excludes capital gains, so if you use the income to reinvest and make further gains, then they will see how they will tax you, this part is still pending clarifications from the MOF, but be sure to keep your documents ready.

however, they are also trying to seek for exemption for certain things like dividend income, which has already been taxed at source country, should not be subject to tax again. but this is now still pending from MOF.

Will share more once I hear from them again. thanks.

Edit: on the bolded, especially for those companies with real substance, i.e. for example, manufacturing plant overseas, hiring ppl, paying overheads, sell goods, making income then declare dividend type of companies/businesses.

This post has been edited by tehoice: Nov 18 2021, 12:50 PM

Another keyword is also remittance, you will be taxed when you remit/repatriate it back to the country, so they are also seeking for more clarifications, because prior to 2003, they have this "deemed remittance", now it's not there.

So from accounting perspective, your FSI will be recorded in your books on a consolidated basis (group level), but you will not be taxed for this, if the money hasn't been repatriated back to the country. hope this clarifies.

Note: i am not tax expert, but merely sharing what i learnt from the tax experts from one of the big 4s. not the bogey ones.

This post has been edited by tehoice: Nov 18 2021, 12:53 PM

Thanks for updates!

i got some materials, but i am not consented to share it publicly for now. until i have the greenlight. thx.

Wait so capital gain is not taxed?

looks like a YES,
but income from that capital will be taxed

thanks for update...

i just wanna know monies in overseas banks, stocks, etc. as at 31 dec 2021, are these tax-free or not when remitted in future... these are currently tax-free when remitted, the new law shouldn't retroactively tax "old fsi monies"...

but the other big question is... what the heck are these?



and this...



This post has been edited by dwRK: Nov 18 2021, 01:27 PM