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?

Lower as Aussie residents does not mean it is lower than Msian taxes.

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

i think which ever allows me to pay the lower tax. However, having said this maybe better to [ay Aussie taxes as it is put to better use. Look at their infrastructures. Class A compared with our class F infra.

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.

Aust tax rate:

$0 – $18,200 0% Nil
$18,201 – $45,000 19% 19c for each $1 over $18,200
$45,001 – $120,000 32.5% $5,092 plus 32.5c for each $1 over $45,000
$120,001 – $180,000 37% $29,467 plus 37c for each $1 over $120,000
$180,001 and over 45% $51,667 plus 45c for each $1 over $180,000

P's: As far as i am aware the above is correct but the tax rules may have changed in the last few years.

This post has been edited by Garysydney: Nov 21 2021, 09:58 PM

If international stock broker money go to singapore bank first, after that i use transferwise to transfer money to local bank, how they justify that is income from oversea?

Money from SG bank to local bank, that is money from overseas. Then ask: where does the money from SG bank (i.e. overseas) come from? Traceback, and money comes from stock broker. Now IRB can't be sure if the money from stock broker is income in nature or not, so you need to prove it with brokerage statements. What portion is income, what portion is capital gains, what portion is original capital etc. Tedious as it might sound, that is how you justify income from overseas.

Bottom line: KEEP your documents.

if i lose money from stock market, whether i still need pay tax? if original RM10,000 to Singpaore, transfer back is RM8,000.

RM8,000 will be taxed?

Losing capital is not subject to tax certainly, but if you receive dividends during the holding period, your dividends will still be taxed when brought back, so you have "double loses" (assuming no tax treaty in the said country with Malaysia). It remains to be seen if IRB malaysia will allow you to claim tax credits against your loses (US IRS allows that, but they have capital gain tax), but I don't think this is likely, nor is it mentioned in the supply bill/budget. More details will be seen in the finance bill.

It has not been finalized yet.

This post has been edited by TOS: Nov 21 2021, 11:11 PM

maybe you thinking of witholding tax...




resident cheaper...

foreign source income implies you're local tax resident/payer with foreign income... if you're now a foreign tax resident with foreign income, this law probably doesn't apply to you...

but you can't simply stay >180day somewhere and declare you're not a local tax resident anymore... need to clear tax with irb and tell them sayonara...

and now any income in malaysia (e.g., rent out your old house, etc), you supposed to pay a flat-rate non-resident malaysian tax...and also top-up foreign source income tax to you australian tax...

This post has been edited by dwRK: Nov 22 2021, 02:24 PM

Thank you for correcting me.

You are right on your calculations there

Thanks mate.

Out of curiosity, is there some way this can affect foreign asset-backed loan remitted back to Malaysia? Will it be like capital gains, where if I kept the papers to prove that this remittance is not income, the worse that could happen is just an audit session?

Interest from loans will also be taxed, if I understand correctly, as it is income in nature.

Ah, I mean if I take a loan ( I am borrowing money) and remitting back to Malaysia, I am not the one lending out.

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...

very good... no more foreign sourced income...now very much like money laundering...

joking ah... obviously you got paperwork where money comes to buy house... but money still need to flow back out wor to service loan... nett zero

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 👍👍

🤑🤑😁

This post has been edited by yklooi: Nov 24 2021, 03:19 PM

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...