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 Income Tax on Foreign Salary Income?, Work in Home in Malaysia.

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Ramjade
post Sep 20 2023, 05:15 PM

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QUOTE(blur_blue @ Sep 20 2023, 05:09 PM)
Hi everyone,

I hope this is the best place to ask my question after spending some time researching and reading up comments here & there.

So I am hired by a SG company as a contractor while I work remotely in MY, they will pay me directly to my Malaysian bank account. Note they do not have an office here in Malaysia.

I read that I can still use BE form (under “Statutory income from interest, discounts, royalties, pensions, annuities, other periodical payments, and other gains and profits.”) when i file for tax later as I do not have a business account.

My question is, is it a better idea to register my freelance work as a business with Suruhanjaya Syarikat Malaysia (SSM) as it opens up a number of tax deductions allocated specifically for businesses?

Also, should I also do self contribution for EPF as well? Or I shall better save them up elsewhere haha.

I appreciate your help and advice on this.

Thank you very much!  biggrin.gif
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I stand by what always say. EPF give you 5-6%p.a without any increase. Overtime you are losing purchasing power to inflation and depreciation of ringgit. Only contribute max RM4k/year for tax deduction if you are using personal income tax. Rest of the money park it overseas. That is what I myself am personally doing. Since quoting my job, I have not contribute my own salary into EPF except next year where I will put in RM4k max. Rest of my money I will put them overseas.

My ideal parking location the 3 Singapore banks stock currently giving 5-6%p.a and growing conservative 5-6%p.a (actually growing more but being conservative here). Growing means if you don't put any new money inside, your payout increase automatically by 5-6%p.a every year. Stuff which you don't see happening with EPF. Of course not capital protection and if 2008 happen again, can you stand a 50% drop in price?
Playmaker8
post Oct 17 2023, 02:25 PM

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If I work overseas, pay taxes overseas but sometimes exchange my salary to MYR, do I have to declare the amount or pay tax?
batman1172
post Oct 17 2023, 02:46 PM

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QUOTE(Playmaker8 @ Oct 17 2023, 02:25 PM)
If I work overseas, pay taxes overseas but sometimes exchange my salary to MYR, do I have to declare the amount or pay tax?
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No need to declare. Malaysia tax system is territorial.

also since you no income in Malaysia, remember to register to get BRIM and all the benefits associated as B40



propriete
post Jan 26 2024, 04:41 AM

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Hello, a quick one. If I am NOT a tax resident in Malaysia, but I opt for my oversea salary to be received in Malaysia bank. Do I have to proof that this income has been taxed in source country? TIA.

Ps: It's just hassle to get tax cert from my current company.
MUM
post Jan 26 2024, 07:35 AM

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QUOTE(propriete @ Jan 26 2024, 04:41 AM)
Hello, a quick one. If I am NOT a tax resident in Malaysia, but I opt for my oversea salary to be received in Malaysia bank. Do I have to proof that this income has been taxed in source country? TIA.

Ps: It's just hassle to get tax cert from my current company.
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While waiting for real sifus that really knows this stuffs, ...I just kay pph, ....I think, if the transferred in amount is consistent, and large, ....the banks may report it to the authorities. Perhaps under the BNM directives of suspicious transactions reporting?
jack2
post Jan 26 2024, 12:08 PM

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QUOTE(MUM @ Jan 26 2024, 07:35 AM)
While waiting for real sifus that really knows this stuffs, ...I just kay pph, ....I think, if the transferred in amount is consistent, and large, ....the banks may report it to the authorities.  Perhaps under the BNM directives of suspicious transactions reporting?
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to answer this question is very straightforward with reasons why.

In the past, many here consulted me on tax matters without paying single cents but they are rich.

Hence, I told myself I won't provide free answer.

Let's wait other sifus to answer cool2.gif

This post has been edited by jack2: Jan 26 2024, 12:15 PM
propriete
post Jan 26 2024, 10:44 PM

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QUOTE(MUM @ Jan 26 2024, 07:35 AM)
While waiting for real sifus that really knows this stuffs, ...I just kay pph, ....I think, if the transferred in amount is consistent, and large, ....the banks may report it to the authorities.  Perhaps under the BNM directives of suspicious transactions reporting?
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The transfers are consistent and mentioned my name on a monthly basis. It's clear that they are monthly salary. But I don't work in Malaysia and not a tax resident.

I know for MY tax resident, they have to prove that this income already tax in source country to qualify for exemption. My question is for NON-resident, is it a blanket tax exemption? or I still have to prove? I can prove with passport that I'm not tax resident.
MUM
post Jan 26 2024, 11:55 PM

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QUOTE(propriete @ Jan 26 2024, 10:44 PM)
The transfers are consistent and mentioned my name on a monthly basis. It's clear that they are monthly salary. But I don't work in Malaysia and not a tax resident.

I know for MY tax resident, they have to prove that this income already tax in source country to qualify for exemption. My question is for NON-resident, is it a blanket tax exemption? or I still have to prove? I can prove with passport that I'm not tax resident.
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Not a qualified tax comment.

I google and found this, which I think may hv some implication...
https://www.google.com/url?sa=t&source=web&...XvrZuQG8xzLAsEF

Both you and your company are non residents....doing settlement of payment of service done outside of Malaysia

https://www.bnm.gov.my/fep#:~:text=%E2%80%9...sations%3B%20or


This post has been edited by MUM: Jan 27 2024, 12:26 AM


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