Yes, it's very clear. That's why I shared it.

Anyway, I think there's some misunderstanding here.

I was pointing out that this particular point from the Biztory article is wrong:-

"For freelancers, earning revenue from foreign companies (not based or registered in Malaysia) is not uncommon. Here’s some good news, income earned from outside Malaysia is excluded from tax as of YA 2004."

This post has been edited by iammyself: Oct 31 2021, 12:17 AM

mind telling where is "wrong"?

"For freelancers, earning revenue from foreign companies (not based or registered in Malaysia) is not uncommon. Here’s some good news, income earned from outside Malaysia is excluded from tax as of YA 2004."

i read as "For freelancers, earning revenue from foreign companies (not based or registered in Malaysia) is not uncommon. (means common)
Here’s some good news, income earned from outside Malaysia (refer to those Freelancers who earn foreign sourced income) is excluded from tax as of YA 2004."

For freelancers based in Malaysia, revenue from foreign companies is not considered "foreign source income"...

It's considered locally derived. As such, it's taxable..... in MY.

Recall from the Ahmad's orchard example that "The net proceeds from the sale of the fruits on consignment to the Singapore fruit trader are derived from Malaysia as the fruits are produced in an orchard in Malaysia."

Freelancer = Ahmad
Freelancer's office = orchard
Service performed = fruit

This post has been edited by iammyself: Oct 31 2021, 12:31 AM

according to this
With effect from YA 2004, foreign source income derived from sources outside Malaysia and received in Malaysia by any person (other than a resident company carrying on the business of banking, insurance or sea or air transport) is not subject to Malaysian income tax. (exclude the latest Budget 2022 proposed criteria)

https://www.3ecpa.com.my/resources/malaysia...sourced-income/

Are all earnings considered taxable and what tax form should freelancers use?
Note: Income earned from foreign companies, in other words, businesses that are not based or registered in Malaysia, are exempted from tax, as of YA 2004. (before the latest Budget 2022 announcement)
https://www.comparehero.my/budgets-tax/arti...eelancer_easier

isn't that same/similar as by biztory?

Ahmad is under business,...in business they have expenses and need to calculates the P/L for tax purposes.
will it be? ....income sourced overseas in not taxed, but the income added into Ahmad business a/c will make the business has more more profits thus be taxed more??

some court cases on Local Income Versus Foreign Income
https://chengco.com.my/wp/2018/03/16/local-...foreign-income/

This post has been edited by MUM: Oct 31 2021, 02:04 AM

i think i am beginning to get what you meant,....
i think you could be right

thus i think they want to clear off all doubts,..effective Jan 2022, in Budget 2022, they propose the change

This post has been edited by MUM: Oct 31 2021, 02:08 AM

May I know if an individual(staying in Msia) has an account with a brokerage/bank located in Singapore and he invested in the foreign stocks(e.g. in NYSE, SGX and etc.) and earned some dividends.
Those dividends are directly remitted into the account located in SG. Will this kind of dividends be taxable when it's transferred back to Msia later(e.g. maybe 5 years later)?

Also, how about if those dividends had already been taxed by the foreign gov in the first place(e.g. the 30% dividend withholding tax imposed by the US gov to those non-resident investors)?
So, would such dividends be taxed again in Msia? If yes then this is taxing of the same income twice(Double tax).

Thanks

Both scenarios won’t be taxed because it is not income derived from foreign sources

The tax will only applicable to those who actually deriving revenues abroad which is consider as income to IRB hence taxable while basing in Malaysia for more than 182 days a year

Wait for more info starting Jan 2022. My guess is they won't tax. Cause if tax, they themselves also kena. But we won't know. Govt now desperate.

I think that's where you need to fill for tax refund. Hassle but if you don't file, it's free money for govt. If you file, you get back what the govt owe you.

For me, I make sure that the govt owes me and not I owe them.

Let's wait until 2022 for more clearity.

Bottom line, previously non taxable foreign income for Tax-Resident in Malaysia will be taxed. It’s not taxable previously (thanks for those voluntary declare and pay).

let's wait for 2022 since we dunno the new details...

the existing law gives some conditions to determine taxability, such as your tax residency and the effort ("major economic activity") to earn this foreign income... hence you are not taxable under the old law

as for existing monies kept overseas and repatriated later... my guess is no but I will ask...

This post has been edited by dwRK: Oct 31 2021, 08:02 AM

Hey guys! I'm a freelancer based in Malaysia, my income comes from international clients. I understand that Malaysia will tax me if I bring the income back to Malaysia. Do you have any idea how to keep my income overseas?

Some of the things that crossed my mind:
1. offshore bank account like HSBC premier?
2. apply for a VISA in zero/low tax places like UAE, Mauritius, etc, then get a bank account there?
3. Keeping my funds in Paypal/payoneer/wise accounts?

Thanks for your input!

mind sharing what is the estimated income that is derived from foreign source per year?
since you mentioned that your income comes from international clients.....how do you sustain that income without any income to support your expenses locally?

btw,
for your mentioned item 1 & 2,....are you eligible to apply or do that?

This post has been edited by MUM: Nov 5 2021, 11:54 PM

It's not confirm yet how it will be taxxed. Whether you bring back your money or don't bring back money will be tax or only when you bring back money.

If it is the latter, eventually some how you need to bring back the money. If it's the latter and say they give you allowance of say tax free for the first RM10k, can you survive in RM10k/year?

1. Unless you are really rich and stupid and have no place to park your money, you are basically locking up RM250k. RM250k which can be used for investment or better stuff like buying a house.
2. If it's the first one where you will be taxed regardless of you were to brnig money back or don't bring it back, then overseas bank account or visa will not be helpful. If it's the first one, the only way around it is
1) setting up trust fund
2) renouncing your Malaysian IC
3) Keep in mind PayPal charges 4% for all incoming funds if I am not mistaken. Wise only let you keep max RM 20k inside borderless account. Keep in mind, Malaysian now don't get access to borderless account unless you are the early ones in.

For me, if I were in your shoes, I will open a sg bank account. You can check out the steps here.
https://ringgitfreedom.com/banking/opening-...for-malaysians/

That's only for holding SGD. If you want to hold other currency account, I recommend DBS My account. The steps are listed below.

This method might take few steps but will save you quite a lot of money going into the future.
1. Do not use PayPal what so ever.
2. Fly into singaootre and undergo their quarantine if necessary. Now Malaysia can fly outside. Use this opportunity.
3. After finishing your quarantine, take MRT or bus to Marina bay financial center.
4. Go to DBS HQ and tell them you want to open DBS Multiplier account/My account (yes the name is called My account) together with DBS Vickers. Very important for you to mentioned DBS Vickers. This is the criteria for you to open account is Malaysian. Dbs vickers is their stock broker account. You don't need to use it or fund it also can. But if you want their account, you need a DBS Vickers account. Be prepared to wait 3-4 hours there. I waited 3-4 hours there.

What is this DBS multiplier/My account?
It's a Multicurrency account that you can hold yes 10 types of currency including USD. You can use it to received, hold and send USD. Tried and tested myself.
Best of all you only pay USD10.00 for all incoming USD. Yup that's it.

Why DBS My account?
Dbs multiplier need to you to maintain SGD3000 at all time or else if it drop below SGD 3k, you will be charged I believed SGD5.00/month.
Now with DBS My account I only keep SGD0.10 inside as there no minimum amount (stated in their T&C). True story. Didn't believed it until I tested it.
More info here.
https://www.dbs.com.sg/personal/deposits/sa...unts/my-account

What happen if they refuse to let you open My account?
No issue. Just take whatever account they give you. But I thought you said to get My account. Yes. That's right. But most important is get account with DBS bank.
After 6 months, you can open a DBS My account online and close your DBS multiplier and transfer all your SGD/USD into your new My account. I waited for 7 months before doing that. They mentioned in their terms and condition I believed need to wait 6 months before closing account

Remember to ask for their DBS Debit visa card. This card lets you spend like a local. Which means if you have USD in your bank account, it will automatically use the USD account first before they use the SGD part. No additional charged. Alternative use Bigpay.

5. Now that's all set up, fly back to Malaysia.

6. Quarantine again in Malaysia if needed.

7. Once at home, open interactive broker account here.
https://www.interactivebrokers.com/en/home.php. Make sure to fund it with at least SGD7.00. You can use the DBS account to fund the interactive broker via FAST transfer (SG version of Duitnow/IBFT).
https://betterspider.com/funding-your-accou...ractivebrokers/

So that means you need about SGD3007 in total.

Why interactive broker? It doesn't make any sense.
Interactive broker give you the best exchange rate anywhere on the planet for all currency. It's spot rates (real time market rates without any markup) and best of all you only need to pay USD2.00/conversion up to USD 1,000,000. More than that you pay lesser.
https://www.interactivebrokers.com/en/index.php?f=1590&p=fx
My friend told me it's USD100,000 but interactive broker webpage mentioned USD1,000,000. Not sure who's right. Anyway don't have that kind of money. The rates you are getting will be way better that any money changer rate.

It will make sense down the road. Continue reading on.

Keep in mind interactive broker allow you one free withdrawal of currency in whatever currency you want to withdraw a month. More that that you pay.
https://www.interactivebrokers.com/en/index...8#cash-movement

8. Open CIMB sg account.
Full details here
https://ringgitfreedom.com/banking/opening-...for-malaysians/

For verification part to activate your CIMB Fastsaver you need to transfer SGD1k. So that means you need SGD4007 in total not SGD3007 as mentioned aboved.

There's two way to pass their eKyc
1. Use your new DBS account and send SGD1000 over via FAST (the original way I used and the way it's intended)
2. Use CIMB MY (yes you need CIMB MY account) and send SGD1.00 into your CIMB SG account.
Once you have SGD1.00 send use fintech like bigpay, TransferWise and Sunway money to transfer the remaining SGD999.00

Once account activated they will tell you via email and send over a bunch of codes for login via snail mail. Be patient. Wait like 2 weeks to 1 month.

Now that you have all uo and running, let's get to the fun part. How to get paid in USD and change it to Malasysin currency without losing like 4% eacv transaction and without losing additional money for intermediate bank agent transfer.

Paid in USD -> DBS Multiplier/My account (only pay USD10.00. That's all) -> Now that you have USD in your DBS bank account -> initiate a USD transfer into Interactive broker via DBS remit for free. Make sure to notify interactive broker of incoming USD with the bank account number that match your DBS Bank account without dash every time you want to send USD into interactive broker. Make sure under DBS Account select send USD and receiving side USD. Money takes few hours to enter Interactive broker account. -> once money enter into Interactive broker, convert into SGD using interactive broker. Do not use any banks. -> Initiate a withdrawal to CIMB Sg -> Use CIMB SG to send money back to CIMB MY at money changer rate.

Welcome. You have just successful dodge 4% PayPal fees and save some money.

So back to your original questions.


Paid in USD -> Deposit into DBS Multiplier/My account -> Hold USD at no interest -> 1) Expense (USD) 2) transfer back to Malaysia as shown above.

If you want to hack your USD to get some interest, I recommend researching pseudo bond stocks in US. Here are a few. Google, Amazon, apple, Microsoft and Canadian railway. By diverting USD into those stocks, you get paid to wait until you need to use the USD. Keep in mind this is not guaranteed. Hence you can lose your money.

Use the dbs visa debit card provided to fund your expenses. Remember to pay your tax to Malaysian govt if you don't want any problem

You are welcome.

You can do the above while waiting for 2022.

This post has been edited by Ramjade: Nov 6 2021, 10:33 PM

Regardless whether the new tax law will be implemented or not, you will be taxed as your income derived in[U] Malaysia. It doesn't care who and where your clients are from.

SG now does not allow any Msian in unless you have familial ties there. See VTL procedures below.

https://safetravel.ica.gov.sg/vtl/requirements-and-process

Actually I think can still fly in. Only need to quarantine there.

Hi Ramjade and other forumers,

I had opened the CIMB fastsaver account last 2 months ago. (follow the guide from lowyat)
Currently, I am receiving my commission/business referral fee from Hongkong and Singapore company.
(HK and Spore company sell directly to customer in Vietnam and Malaysia), I just act as agent to make the deal and collection done, then they pay the certain amount to me)

They TT in USD into my fastsaver account which automatically converted in SGD.
So far, not an issue to receive via this method.

May I know, any amount restriction of them to TT to my fastsaver account?
Fyi, I had instructed them to split the amount USD5k each to transfer into my account just dont want to alert bank as USD TT is quite sensitive... (total commission let say about USD10k)

I am currently based in Malaysia with other employment.

I did a transfer from fastsaver into my CIMB Msia account and it took only few minute to sight the incoming fund.

This extra income, should I make a declaration to Msia tax department or it is exempted as considered foreign source income?

If business is good, I may receiving few K USD per month, but still subject to sales concluded or not.


Let say, if I wish to keep my extra income in Fastsaver account, and amount is growing big few years later, bank will question me?
AS I m thinking to save it for my future kids education in Singapore later. maybe 10 years later...

Appreciate your comments

Thanks
Lee

The only one confused here is the one already declared foreign income and paying taxes all this while.

But only from 1st Jan 2022 it’s official taxable.

Happy?

while waiting for his response,
you can try his recent 6 Nov post
as in post 16
in this thread
https://forum.lowyat.net/topic/5212522

on this "This extra income, should I make a declaration to Msia tax department or it is exempted as considered foreign source income?"
In the Budget 2022, it has been proposed that income tax be imposed on residents in Malaysia with income derived from foreign sources and received in Malaysia from Jan 1, 2022.
read the link in post 39 page 2
https://forum.lowyat.net/topic/3524728/+20

This post has been edited by MUM: Nov 8 2021, 02:06 AM

Not for non-political and state reasons. Look at the website for application for non-familial ties.

Edited by adding : Have you tried ? Please do not reply by saying you don't have a need to go to SG now.

This post has been edited by Hansel: Nov 8 2021, 07:57 AM