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??

https://www.malaymail.com/news/malaysia/202...-inheri/2030443

MORE taxes coming our way!

So do i. But when they need to finance their yearly excesses, no tax income is too much.

Nothing will be surprsing from this government.

Look at EPF. THe MOF gave instruction to EPF to donate RM10 million to flood victims. This sort of action means the fellow has NO accountability and responsibility.  Woe to EPF!

I wonder how does EPF does the book keeping, especially since a big part of the income is derived from overseas.
When they declare the dividend do they deduct the amount for this tax first before calculating the dividend?
What if the profit is held overseas until there's a need to remit it back to cover local investment/withdrawal and then pass the tax as a cost for the year where the remittance is done?

Or are they going to defer booking those profit from overseas until they need to remit the money back? Would this mean lower dividend?

Since the tax amount would be quite significant, it would be interesting to see how this work out.
In the end, the EPF is indeed a really fat golden goose now

This issue of foreign tax (Residents or Non Residents status) only effecting individuals, not existing businesses.

Hi all experts, just wondering if someone remits $$$ into a Malaysia bank account, say RM200k before 31/12/2021, the bank would usually call the account holder and ask about the incoming remittance. Usually what is the right answer to tell the bank? And what is the purpose of the bank calling the account holder? Is it for compiling data, for anti-terrorism financing efforts, etc? TQVM for being patient with me.

If you are paying tax in SG but legally tax resident in Malaysia then I believe the answer is yes, but that any tax paid in SG can be offset against your Malaysian tax.

Happy to be corrected on that.

Thanks for the prompt reply. What if one is a tax resident in SG and spent less than 183 days in Msia. The individual should not be subjected to this new tax? On remittance of funds from SG to Msia via financial institutions, do we have to show proof the the receiving Msia bank? When would the 3% be imposed?

Ok. This gets slightly more elaborated. So a tax resident in SG will automatically file for personal income tax in SG which the amount would be treated as tax relief by LHDN? Individuals will have to make filings to LHDN as well?

More questions than answers.

Yes I did. This could be the closest.

ekiranya pendapatan yang diremitkan telah tertakluk kepada cukai di luar negara (cukai asing), adakah layak menuntut potongan kredit cukai?
Ya. Pembayar cukai boleh menuntut kredit cukai dua belah pihak atau sebelah pihak di bawah peruntukan seksyen 132 / seksyen 133 ACP 1967 sekiranya pendapatan yang telah diremitkan ke Malaysia tersebut telah dikenakan cukai asing sama ada dalam bentuk cukai pegangan atau cukai pendapatan.
Pembayar cukai yang menuntut kredit cukai perlu menyimpan bukti cukai asing yang telah dibayar.
Kredit cukai yang dituntut untuk suatu tahun taksiran TIDAK boleh melebihi bahagian cukai Malaysia yang kena dibayar berhubung pendapatan yang diremitkan untuk tahun taksiran berkenaan dan mesti dituntut dalam tempoh dua tahun selepas akhir tahun taksiran 2022 atau 2023.

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

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?

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.

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 ...
.....

I think the income tax is depending on the FY a 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

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 .
(i think the word to take note is "if remitted",...no remittance then i think is not tax.) (unless the remittance is done by hand carry from SG to JB at a max of US10k. I think if less than US10k per person no need to declare....just hopefully they still keep this "unofficial" channel open)

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.
(i think EPF contribution made by employer is not taxable......contribution by the part of the employee has a tax relief allowance of max RMxxxx)

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.
(employer's contribution into Spore CPF is considered as employee's income and are subjected to employee's income tax calculation??)

>> 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).

Sifus,

If I receive my income in USD on PayPal, and I don't convert it to MYR or withdraw it into my Maybank account, is the income still taxable?

I work freelance from msia for an australian company. They pay me USD to my msia bank acc every month.
My work is very simple, only need a laptop and a few clicks, once a week, and job is done.

So if i bring my laptop to singapore every weekend and do a few clicks then come back JB, do i have to pay tax?