My guess n thinking only,...
Unless the amount you want to bring back is large n want to purchase high value asset with it.... Then declare it. Else just bring back bit by bit as permitted amount to bring back thru the custom control.... What is the max myr allowed bring back without declaring at custom?

There is already an established Double Taxation Agreement between MY and Australia
https://phl.hasil.gov.my/pdf/pdfam/AustraliaDTA_20012017.pdf

Article 4
RESIDENCE
1. For the purposes of this Agreement, a person is a resident of one of the Contracting
States:
(a) in the case of Malaysia, if the person is resident in Malaysia for the purposes
of Malaysian tax; and
*Based on your scenario since your wife is in Malaysia more 182 days your wife should be tax resident in Malaysia)*

(b) in the case of Australia, if the person is a resident of Australia for the purposes
of Australian tax.


2. Where by reason of the preceding provisions an individual is a resident of both
Contracting States, then his status shall be determined in accordance with the following
rules:
(a) he shall be deemed to be a resident solely of the Contracting State in which
he has a permanent home available to him;
*Based on your scenario since your wife permanent home is in Malaysia then should be tax resident in Malaysia)*

(b) if he has a permanent home available to him in both Contracting States, or if
he does not have a permanent home available to him in either of them, he shall
be deemed to be a resident solely of the Contracting State in which he has an
habitual abode;


© if he has an habitual abode in both Contracting States, or if he does not have
an habitual abode in either of them, he shall be deemed to be a resident solely
of the Contracting State with which his personal and economic relations are
the closer.
3. In determining for the purposes of paragraph 2 of the Contracting State with which
an individual's personal and economic relations are the closer, the matters to which
regard may be had shall include the citizenship of the individual.
4. Where by reason of the provisions of paragraph 1 a person other than an individual
is a resident of both Contracting States, then it shall be deemed to be a resident solely of
the Contracting State in which its place of effective management is situated.


Article 21
INCOME OF DUAL RESIDENT
Where a person, who by reason of the provisions of paragraph 1 of Article 4 is a resident of both Contracting States but by reason of the provisions of paragraph 2 or 4 of that Article is deemed for the purposes of this Agreement to be a resident solely of one of the Contracting States, derives income from sources in that Contracting State or from sources outside both Contracting States, that income shall be taxable only in that Contracting State.
*(This doesnt apply as your wife is not a dual resident based on the article 4 test)*

Article 23
METHODS OF ELIMINATION OF DOUBLE TAXATION
1. The laws in force in each of the Contracting States shall continue to govern the taxation of income in that Contracting State except where provision to the contrary is made in this Agreement. Where income is subject to tax in both Contracting States, relief from double taxation shall be given in accordance with the following paragraphs.

2. In the case of Malaysia, subject to the provisions of the law of Malaysia regarding the allowance as a credit against Malaysian tax of tax payable in any country other than Malaysia, the amount of Australian tax payable under the law of Australia and in accordance with the provisions of this Agreement, by a resident of Malaysia in respect of income from sources within Australia, shall be allowed as a credit against Malaysian tax payable in respect of such income, but in an amount not exceeding the proportion of Malaysian tax which such income bears to the entire income chargeable to Malaysian
tax.

Basically you need to declare your foreign income received in Malaysia to LHDN then you need to calculate the income tax payable in Malaysia for that foreign income.
If your employer had deducted income tax to Australia Govt before paying you they need to furnish you evidence of the tax paid in Australia so you can deduct that from the income tax payable to LHDN

Example
( Figure are fictional and just illustrative)
Your Foreign Income in Malaysia is Rm 1,000,000
Your MY Income Tax is 24% = RM 240,000
Your foreign employer already deducted RM 180,000 paid as Australia income tax and can provide you with proof
( There should be a EA Form equivalent if your an employee of the Company)
Then you need to declare to LHDN but pay RM 240,000 less RM 180,000 = RM 60,000 to MY Govt

I used to work overseas and was not a tax resident in MY but tax resident in another country. When i return the employer provided full proof of all income tax paid in the foreign country so even if LHDN ask me there is clear trail of evidence. Your scenario is different from me as your a tax resident in MY earning income in AUS so definitely have to declare.

The goal of double taxation is to ensure/minimize the tax resident being tax on the same income from two country ( being taxed twice) that why you are allowed to credit any tax paid in the other country against your income tax in local country.

This post has been edited by VCBlogger: Dec 27 2021, 01:06 AM

I think n guess,......
the soon to be implemented foreign sourced income tax regime starting 1 Jan 2022 would make bring in money saved from employment in Australia to be taxed too....
If you are already paying taxes in Australia, you can seek tax credit to offset taxes paid in australia

This is cumbersome. It means all Malaysian who is not a Malaysian tax residents, would need to file 2 tax filings. One with the tax authority where they are a resident and the other with LHDN. The 2nd filing with LHDN has to adjust with the amount of tax paid via tax rebates.

This is quite massive right?

i am more concern of the "massive" on the taxes applied to the amount of money one remit back from CPF savings upon reaching retirement age

This post has been edited by MUM: Dec 27 2021, 09:02 AM

Usually if your an expat you should negotiate your package nett of tax which means all tax for the country ( Australia) is paid by your employer and arranged by your employer.

Companies sometimes dont regard you as an employee but as an external vendor ( e.g. cause you wont enjoy staff benefits like medical, etc) as such what they pay you could be without any tax deducted and they assume you will pay the relevant tax at the country of residence ( which in TS Wife Case Malaysia). So please check with your employer what they pay and did not pay,

Basically they treat you like engaging a foreign vendor and pay you a fixed sum per contract then you settled your tax at LHDN ( Malaysia)

If your working in Singapore ( means you stay in malaysia less than the prescribed period and is in Singapore for the prescribed period ) you will be a tax resident of singapore but not a tax resident of malaysia.
As such your not liable to LHDN. Proof can be via your passport. Transferring CPF money back is not taxable as long you have evidence and proof that its CPF money.

is that "OLD" news/system?
YES,...tax free last time....
now with the the soon to be implemented foreign sourced income tax starting 1 Jan 2022...
things will still be the SAME as before?

This post has been edited by yklooi: Dec 27 2021, 10:13 AM

looks like the info you posted are 'OLD",...no more applicable effective 1 Jan 2022.
(this latest postings of yours is the 2nd "old" info posted since 1.04am today)

for from this article, it wrote,...

Locals who work in Singapore, whose funds are deposited with the Central Provident Fund (the island republic’s equivalent of EPF), will take a hit when they withdraw and repatriate their retirement money from the city state.

“EPF members can withdraw their money from EPF without being taxed. But for JB folks who work in Singapore, the money they withdraw from CPF will be taxed when repatriated to Malaysia,” says Chua.

“They should be able to enjoy double tax relief in respect of tax paid in Singapore. However, due to the exchange rate difference and a higher individual tax rate in Malaysia, they may have additional tax to pay in Malaysia.”

https://www.theedgemarkets.com/article/fore...fsie-withdrawal


This post has been edited by MUM: Dec 27 2021, 10:20 AM

No longer from 1st Jan 2022.

That is the reason for the lengthy discussion here!

I was referring to massive workload to file the tax papers with LHDN. Would non-Msia tax residents be entitled to any rebates/relief? There are 300 - 500k Malaysians working in SG and I doubt even 50% know what is going on - shudder to think about filing the tax returns with LHDN ...

If the last para is correct, then there is no discussion. Business as usual. This is different from the LHDN link.

I am sure in the next few months, there will be many articles on that published

This post has been edited by MUM: Dec 27 2021, 12:41 PM

I think the income tax is depending on the Financial Year right . As such the prior year one I believe the old method would still apply .

For income for FY2022 then that would need to tackle under the new guidelines .

So this issue I think the prior year solve it as well as you will get questioned . So can address at the next income tax cycle submission in May 2022.

For the income earned from Jan 2022 to Dec 2022 tackle under the new guidelines

This post has been edited by VCBlogger: Dec 27 2021, 02:07 PM

according to this article, .....

Is the new change applicable on FSI earned before 1 January 2022?

Even though the law is effective from 1 January 2022, any foreign income generated before 1 January 2022 but remitted into Malaysia on or after 1 January 2022, will be liable to Malaysian income tax.

https://www.crowe.com/my/insights/taxabilit...-sourced-income

This post has been edited by MUM: Dec 27 2021, 01:56 PM

Based the Crowe that you provided it seems to be on earned and received . So those received in MY prior to Jan 2022 would follow old Law and those received post would follow the New Law .

For CPF if we compare to our EPF we are also taxable on employer contribution to our EPF and are only provided tax allowance of RM 4K.

So for CPF, the taxation should be on the same basis . I think what some of the people are recommending is to provide similar relief like our KWSP to these CPF.

>> From KWSP website : Requirements. EPF contributions are tax-deductible up to a maximum amount of RM4,000, subject to periodic amendments by the government (excluding of exemption for life insurance premium).

EPF employer portion is not taxable.
Only employee portion is counted towards gross income and has a relief of 4K.

This post has been edited by MUM: Dec 27 2021, 02:22 PM

Yup your right . Just confirm with my HR. Only employee portion is taxable .

Great job detecting this !!

Soalan Lazim Sedang Dikemaskini dan Disemak Semula

pls help monitor for latest pkpp faq

This post has been edited by dwRK: Dec 27 2021, 03:43 PM

I will look at it this way :-

1) First off, have you ever been a Msian Tax Resident ? If not, then you wouldn't have a taxfile, AND you continue being a non-tax resident. Then whatever you remit in will not be subjected to the stopping of the FSIE.

Then,... if you choose to start a taxfile, you'll have to get hold of a residency-based certification from your tax-resident ctry to show to LHDN if you are ever asked to.

2) You do not need to declare whatever foreign income you made and income taxes that you have paid outside Msia to LHDN. None of this matters to LHDN. It's none of their business - but please update here if I am wrong in this and someone here has to declare their foreign income to LHDN even if such income has not been remitted back to Msia.

3) The problem starts when you are a Msian Tax REsident. Then you have to prove that whatever yuo remit back is capital-based, and hence, shld not be subjected to tax.

If the remittance is income-based, then it is subjected to tax. BUT what if it has already been taxed outside of the ctry by foreign tax authorities ? Then you'll have to furnish proof that such has happened and you deserve a tax offset.

A scenario now,... everybody knows dividends earned from US-based companies are 30% tax-withheld. But what papers can we show to claim this tax credits when we remit back the USD dividends into Msia ?

Bros and Sis,... the word here is always : remit back.

The moment you need to bring back in,... then you'll have start thinking what is the right thing to do.

Like,.... in my case now,... I am thinking,... since my USD dividends will be tax-withheld anyway by the IRS, I can bring them back to Msia and will enjoy tax-credits.

But I can't back any SG dividends at all.

Let's see after writing the above, will the faqs change to say that USD dividends will never be granted tax credits, regardless,....