You guys may want to look at this too:

https://www.hasil.gov.my/bt_goindex.php?bt_...=5000&bt_sequ=2

Scope of Taxation

An individual who is resident in Malaysia is taxable on all income accruing in or derived from Malaysia and on income received from outside Malaysia. The scope of taxation of an individual depends on his resident status.

I should read it as "income received from outside Malaysia" upon remittance?

i read as by refering to the way the sentence are framed....YES.
if not yet remit from outside, then means not yet received in M'sia

thanks bro... I slept on this a while, I came up with similar answer



when IRB uses the term permastautin, they usually refers to individual residents, not companies...so your friends slightly off here...

1st para example, they can ask USA, give them all W8Ben on Malaysian and any income taxes paid, maybe even bank account number and values... but for countries that you have no tax, financial or banking presence, it will be almost impossible for IRB to check

2nd para ties in with below...



the 3% doesn't cover local source income parked offshore for ya2021 onwards... current law is you need to include in your filing and pay your individual tax rate anyways because it's locally sourced... just in case some smart ass try to be funny, IRB put this extra warning to ppl...the "belum dilaporkan" from 2nd para refers to the filing...

anyways gonna chill n wait for faq...

cheers

This post has been edited by dwRK: Nov 19 2021, 09:54 AM

no no no... this is slightly different...

If you are resident Malaysia and the "economic activity" is in/from Malaysia... you pay tax per your normal filling... it doesn't matter where it's banked in or you remit or not...

if you are resident Malaysia and the "economic activity" is in/from Malaysia... you pay tax per your normal filling.....it doesn't matter where it's banked in or you remit or not.

what if i do investment in M'sia like Unit trust funds or SA/Wahed/etc....that focused in overseas...i think that is also economic activity and this economic activity is in/from Malaysia
i don't pay tax per my normal filling

the dividend distributions of the unit trust from the gains and dividend income received in the holdings of the UT .....are reinvest
if the UT fund or SA/Wahed/etc did not remit income back (when i don't redeem) then it does not matters or does matters?

This post has been edited by yklooi: Nov 19 2021, 10:51 AM

UT investment is slightly different... capital gains should remain tax free...div and int income currently exempted from tax, that's why we don't file it... there was a time we need to file these but probably way before your time

if you look at the US, it doesn't have reinvestment, all funds are distribution type precisely because div & int are taxable at respective payers tax rates...

it's going to be tough to change all the local UT... but imho is a way around it... the fund house will do the segregations and issue a tax statement how much is taxable and not... you just have to report the taxable as income

anyways there's a very strong push back for these to be exempted... will have to wait for the fine prints



This post has been edited by dwRK: Nov 19 2021, 11:30 AM

Yeah

Tq first, bro,....

It's hard to write and debate ilke this,... that's why sometimes, when discussions become complicated, I'd rather drop-off,... we can't talk face-to-face anyway.

I was earlier referring to that article three days ago in The Malay Mail, which was published at 10.30pm that night. THat article was solely in English. That article,... like I mentioned,... is more targetted for companies, not individuals.

In your texts above, you are using the word : pemastautin, a Malay word. This word came up from a different article, which was not discussed with my pals. My pals wouldn't
t be wrong then if they were only commenting on the English article from The Malay Mail. That's all,... anyway,.. I'm not here to defend my friends, bro,... lame activity here,...

Better talk abt : pemastautin. YES - you are right, when this word in used, it normally refers to an individual person,... but,.... emm,.... if you look at some documents in the IRB website, could be referring to companies and businesses too.

Bros - CRS or whatever similar instruments,... not so canggih to dig-out everything-lar,... you know how much work involved ? You think foreign fella wants to do so easily ar ?

Unless, they zoom down to your name,... then I don't know-lar,...

Eg,.... When you write your TIN in some borang, write a stupid number,... nobody cares.

OKay,... above are jibes,... gibberish writings,... you can ignore if you wished to.

I can't open that article,... my computer here blocking,....

Concerning those two stetements under that title : 'Scope of Taxation' in that article,... thwn I will do this : things are out of my hands. I will not remit back, and I will not report nor declare. If indeed there is a tax on income received from outside Msia,... and the sentence stops like that, then tax authority must do a process called T.A.S.. They must do,.... not I do anymore.

If, on the other hand, I remit back, then I will declare whatever I remit back, and perform as required under the new Finance Bill.

Looks like things keep changing everyday,... like I said earlier,... what happened to the expression : upon remittence ? This expression is not mentioned anywhere anymore in recent public articles. This is very dodgy,....

thanks for replying bro... no worries lah, yum cha easy to talk... ding dong here troublesome ... I just gonna chill out lah... weekend already... got better things to do man than talk tax...

Yes bro,... you are right,....

May I know whether this new tax will be based on the transaction date when the money received in Malaysia or it's based on the date when the income was generated?

E.g. those foreign income earned before year 2022 when it's remitted back to Msia after year 2021 then such remitted amount might need to be taxed too?

Thanks

i have a question here:

This tax is based on tax residency.
I believe it means one that is staying in malaysia for 180 days of the tax calendar year.

If one is staying in Aus, but having his/her income coming into Malaysian bank account, how does this work?

Thanks in advance.

My guess,....just guess
If you are staying in Australia, then you will be an Australian tax residence. Then bnm will tell their Australia counter part thru their information exchange agreement abt your bank a/c information in malaysia.

Being denominated in MYR, after conversion to AUD, the tax bracket is probably quite low or negligible.





Maybe it is better to be taxed in malaysia afterall.

This post has been edited by prophetjul: Nov 21 2021, 10:54 AM

So that means, you will pay to Australian govt and nothing to do Malaysian govt unless that money in malaysia are used as an income generating platform in malaysia like property gain tax for example?

Whatever is best for individual taxation. But the Aussie tax rate is pretty steep. So it is better to [ay Malaysian taxes i guess.

But if you are not a malaysia tax residence, how to go around that?

Stay 183 days in Malaysia then. Haha