my guess is,
if you can proof that that money is legally acquired in Malaysia, paid taxes and had documented proof that, that money was transferred out of malaysia previously....
then i guess you should not be taxed...

something like
"Taxpayers are going to have difficulties in dealing with this issue since the monies would have been accumulated over a long period of time and unless you have good records, you may have difficulty in arguing that the amount remitted is capital in nature."

in the link posted in post 133....

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...

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 ?

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 ?

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.

"Selepas tamat tempoh tersebut, pihak  HASiL akan menyemak dan meneliti maklumat-maklumat  pendapatan  pemastautin  Malaysia  yang  disimpan  di  luar  negara  yang  telah
diterima melalui perjanjian pertukaran maklumat percukaian dengan negara-negara lain. 

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."

PKPP tidak melibatkan pendapatan yang terbit dari Malaysia yang tertakluk kepada cukai bagi tahun taksiran 2021 dan tahun-tahun taksiran seterusnya dan diremit atau dibawa balik dalam tempoh PKPP.

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

Not all monies remitted or repatriated shall be taxable, only the income (revenue in nature) not gains (capital in nature).

Bro,...

Think I'll reply to your curiosity here first. After reading that article a few times and discussing with my pals today,... that article is meant more for companies that derive foreign income from their overseas customers and clients. The goods and services 'sold' to those overseas customers were 'produced' in Msia.

But when payment is made,... the funds were 'parked' in overseas accounts,... 

IRB going after these companies now.

"Selepas tamat tempoh tersebut, pihak  HASiL akan menyemak dan meneliti maklumat-maklumat  pendapatan  pemastautin  Malaysia  yang  disimpan  di  luar  negara  yang  telah diterima melalui perjanjian pertukaran maklumat percukaian dengan negara-negara lain. 

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."

PKPP tidak melibatkan pendapatan yang terbit dari Malaysia yang tertakluk kepada cukai bagi tahun taksiran 2021 dan tahun-tahun taksiran seterusnya dan diremit atau dibawa balik dalam tempoh PKPP.

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

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?

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.

Aust financial year is 1 July - 30 June while Msia financial year is the calendar year (1 Jan - 31 Dec). If you have assets in Aust and is a non-resident, then you pay a flat 10% tax. Declaring yourself as a non-tax resident may actually save you tax if your income (from your assets) is quite substantial.

Let me quote you an example:

Let's say you have an income of A100k. As a non-tax resident, you will pay a flat 10% which is A10k. Now if you were a tax resident of Aust, you will have a tax bill of around A23k (not including the 2% Medicare levy). This is why a lot of people do not want to stay more than 183 day/yr in Aust so then they become non-tax resident and their tax bill is a lot less.

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.

good scenario,...
if i have lhdn undeclared money overseas,...i used that to buy property,...i mortgage that property (loan money),...take that "loaned" money back to Malaysia with all the paper work of that loan...

 

Was thinking the tax implications if I perform a margin loan backed by securities on foreign brokerage. If I pay the loan back with my salary, then it's already taxed locally normally. If my securities price go up, then sold to pay back the loan, then does my initial loan remitted back to Malaysia becomes realized capital gains instead?

Feels like a mess and open for interpretion and potentially incredible harmful to the honest tax payer...

Loan is serviced in the country of loan origin,... While earning income n pay taxes there. Maybe if can use to offset some taxes for loan repayment too 🤔🤔 ( like offset interest on loan when seeking rental income tax rebate in msia)
Loaned Money back to msia if can no tax 👍👍

🤑🤑😁

further question.

if you reinvest your dividends received turn it into capital.

then this capital makes further capital gain.

you decide to bring back these newly made capital gain.

how should it be treated?

This criteria's a little funny though.

They said they will accept any locally sourced income brought in from overseas during the PKPP period without conducting any "audit, investigation and penalty."

Then how would they know if someone decide to bring back locally sourced income parked offshore for YA2021 onwards under this scheme since there won't be any audit/investigation?

By logic, since this scheme will start from 1st of Jan 2022 until 30th of June 2022, shouldn't the criteria be YA2024 onwards instead since any locally sourced income that is brought in from overseas after the date the scheme ends can be easily differentiated & tracked?

Which is why I don't understand the YA2021 onwards rule lol.

I don't see how the violation of this rule will not happen given the good faith promise (up to June 2022 of course).

Can you think of any legitimate reason why they included this superfluous rule?