Emm,... filing in the manner that TOS mentioned above means letting the officer know all you are earning overseas, how you are earning them, what instruments you are using, etc, etc,... regardless of whether you are remitting any funds back or not. This means revealing MORE than you are needed to, and you will be doing more work than you are required to.

A very similar scenario except for one thing. I have never had to open a tax file with IRB as I am on MM2H visa. I am thinking of transferring to a spouse visa so I am hoping that I still have no reason or obligation to open a tax file??

with effect year 2015 an individual who earns an annual employment income of RM34,000 (after EPF deduction) has to register a tax file.

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.

https://www.hasil.gov.my/bt_goindex.php?bt_...sequ=2&bt_lgv=2

Currently, .... Under the MM2H visa, expats are not required to pay tax on their income, no matter where it comes from, as long as it's remitted from overseas."....not sure how the new foreign sourced income tax regime will impact or how they will apply to Mm2h visa holder

This post has been edited by MUM: Dec 18 2021, 09:45 PM

ppl do what they need to do lor... if law abiding and have no choice but to remit taxable income back... then you have the rights to claim tax credits, and since everything is above board, IRB won't have anything on you... just troublesome only

I'm of course advocating not to bring anything taxable back until retirement

when filing b/be... there's no need to include any details... just the extra sum taxable... there's also no box for you to disclose any details...

This post has been edited by dwRK: Dec 19 2021, 01:56 PM

if transfer all before 31 dec then won't get taxed? I remember seeing something diff, saying u will need to pay tax for those monies that you earn before 31st dec 2021 from overseas...

Before 1st Jan 2022, all foreign income exampted from income tax.

Thanks thanks. Do u have any link on that? I might have seen the fake one before. Thanks bro.

Foreign income exampted from 2007 if not mistaken.

Now this benefit withdrawn for Resident Tax Status from 1 Jan 2022

For Non Resident Tax status, still enjoy examption for foreign income, but not local income which still need to declare.

I have no link, but above are the facts.

If i wish to remit money (malaysia taxable income for year 2021) from offshore bank back to malaysia,

1. Should i transfer before 01 Jan 2022, which could result more than >3% income tax

or

2. Waiting after 01 Jan 2022, then remit back, which result 3% on tax.

I am more concerned with the lack of tax treaty with the US. US WHT is already 30%, plus income tax rate of say 24%, that means an overall tax of (1-0.3)*(1-0.24) = 46.8% (or 30+24 = 54%?), which in either case is ridiculous.

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.

PKPP does not involve income derived from Malaysia which is subject
to tax for the year of assessment 2021 and the years of assessment
subsequently and remitted or brought back within the PKPP period.



does this means my 2021 malaysia taxable income in offshore bank cannot participate 3% PKPP ? even i remit back to malaysia, the money still considered to conventional income tax rate?

there is a FAQs post on the PKPP
try post 273, page 14.

hope the answers you seek are there

1. I did not filling 2020 income tax, the income are received in offshore bank , could i remit the 2020 taxable amount back to malaysia under PKPP?

2. for 2021 taxable income, could i remit back before 2022 Jan? or anytime is ok?

there could be a form of deduction under double taxation rule..but the general rule is 3% to be imposed on foreign remittance to Malaysia in the 1st 6 mths and to follow individual tax rate thereafter...

Based on the the FAQ, the wording is foreign income remittance or pendapatan.

A foreign remittance is not necessary foreign income because some companies that have overseas asset or the remittance is coming from capital repatriation due to selling overseas asset.

Those should be considered capital or bersifat modal.
So need to distinguish the type of remittance.
It is not a blanket 3% across all remittance, there are criteria.

Correct me if I am wrong, not a tax expert

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

A provision in the Finance Bill would tax foreign-source income received by any Malaysian resident person, effective from 1 January 2022.

The tax would be imposed at a transitional tax rate of 3% based on the gross amount received, from 1 January 2022 through 30 June 2022.

The Inland Revenue Board issued a media release about the introduction of a special program for foreign income remittance during the transitional period. Under the program, only remittances of foreign income would be subject to the tax.

The tax authority is ready to accept any disclosure / declaration made by taxpayers, without conducting a tax audit or investigation.
Taxpayers seeking to participate in the program must make a declaration not later than 30 days after the end of program (on or before 30 July 2022).
Any tax payment arising from such foreign income remittance would be due on the statutory or extended submission deadline of the tax return for the relevant year of assessment.
Once the program expires, the tax authority will scrutinize information on funds kept overseas by Malaysian resident persons, pursuant to exchange of information agreements with foreign countries. Where taxpayers are subsequently found to be under-declaring their foreign-sourced income remitted into Malaysia, or even not reporting Malaysian-sourced income from overseas, additional assessment together with penalties could be assessed.

I like the way you write, thank you.

Let me ask you,... perhaps I could learn something here,... and you are a new forummer,...


Why would the tax authority scrutinise information on funds kept overseas ?

Shldn't they instead spend their time scrutinising the ledger of funds transmitted into Msian bank accounts which were not reported to the tax authority ?

Unfortunately CPF remitted back to M'sia also kena tax

https://www.sinchew.com.my/20211221/%e5%86%...%b6%e5%b1%80-2/

This post has been edited by TOS: Dec 21 2021, 05:29 PM

This is not a big concern for the time being. When one retired, one technically do not have any income right? Then only remit back your cpf slowly, year on year.
The remitted funds, even if one cannot prove they are capital vs income, is at most going to be taxed at normal income rate. So technically every year, the first 40K rm is basically tax free.

This post has been edited by Wedchar2912: Dec 21 2021, 05:32 PM

Assume Covid19 is gone and Spore Msia open again like last time, use the old and tested strategy lor. Put monies inside shoes, underwear, bags etc hide a bit here and there and not too big amount will do. Best is with a group ask each of them to help hide for you also. Once cross customs then treat them meal lor. But that was my times where x-ray machine not so advanced (some days spoilt not working but remain there let ppl see machine etc). Now 2021 I don't know they got buy better x-ray machine to scan ppl or not.