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?

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

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.

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

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

KUALA LUMPUR, Nov 16 — The Inland Revenue Board (IRB) is offering a Special Income Remittance Programme (PKPP) to Malaysian residents who have income deposited abroad.

The agency said this is in line with the abolishment of tax exemption on foreign-sourced income, which was announced by Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz when tabling Budget 2022.

“The programme will be implemented from January 1 to June 30, 2022, during which a gross tax rate of three per cent will be imposed on income repatriated back as proposed under the Finance Bill 2021

“There will be no audit review, investigation or penalty on income brought in during the PKPP period; all income brought in will be received in good faith by IRB,” it said in a statement today.

IRB said other criteria include the income must be brought in or remitted within the PKPP period and taxpayers must make a declaration to participate in PKPP at the latest within 30 days after the expiry of the period.

Besides that, it said, tax payment must be made in accordance with the normal payment order prescribed for the year of assessment 2022 or 2023, whichever is applicable.

The programme does not cover income derived from Malaysia which is subject to tax for the year of assessment 2021 and subsequent years of assessment and remitted or brought back in the period of PKPP.

“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.

It added that it would issue a list of frequently asked questions and guidelines related to PKPP to the public which could be found at IRB’s official portal. — Bernama

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

mentioned: income repatriated back,...what about capital or income with capital + capital gained over the years? how to separate it out?

while waiting for responses,... you can try
read post 165, page 9

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

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.

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?

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

You will then become a Malaysian tax residence👍👍
But, Then as per post 216,
Australian residents (for tax purposes) with a tax file number generally pay a lower rate of tax than foreign residents.

Will you continued to be an Australia tax residence too?

I dont mind paying Australian taxes if I can make Aussie dollar n still hv enough to Aussie dollar to save.

googled and found this

How much can I send?

You can send up to 975,000 MYR per transfer. We may ask for more documents if you send more than 200,000 MYR.
https://wise.com/help/articles/2932332/guid...o-myr-transfers

just happened to read this....

22 Nov 2021 article...

https://www.pwc.com/my/en/assets/media/pwc-...agdev-singh.pdf

hope those whom are involved and had these similar situations will have to follow up on this closer....



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Fixed income prs funds also will be dividend reinvested,.....

just read this....just out today

SOALAN LAZIM BERKAITAN PROGRAM KHAS PEREMITAN PENDAPATAN (PKPP)
KEPADA PEMASTAUTIN DI MALAYSIA YANG MEMPUNYAI PENDAPATAN YANG
DISIMPAN DI LUAR NEGARA
( Dikeluarkan pada 17 Disember 2021 )

https://phl.hasil.gov.my/pdf/pdfam/FAQ_PKPP_2.pdf

mentioned ....individual tax payer.....or others including, (this "or others including") will means anything, everything ??

This post has been edited by MUM: Dec 17 2021, 06:48 PM


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alot MORE if after 30 June 2022

the question did asked about "keuntungan modal"
but the answer just mentioned "bersifat modal"
bersifat modal = capital....
there is no mention about gains/profits in the answer??


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Just my uneducated guess on your question posted..... While waiting for qualified responses.

Isn't your scenario similar to
1) a "retired/unemployed" Malaysian with tax resident status in malaysia
2) has money overseas not bringing it back
3) living off saving that is already in malaysia

If you hv been filing tax returns, you will still need to continue to file it with "0" income number in the income tax rerurn... File it yearly until you tell lhdn to close Yr tax file as you are no more having income
Just not sure how that will impact your visa to continue to stay here, unless your are staying here under "retirement" scheme (mm2h) or dependent pass visa

This post has been edited by MUM: Dec 18 2021, 12:05 PM