How does lhdn knows how much does your overseas employers pays you for your work gone in malaysia, so that they can tax that money?

If they can manage to ask paypal for that info, then How does they differentiate what transaction amount are actually your undeclared income? The money in PayPal can be from many sources n for many purposes

according to the previously published FAQs on the previously was to enforced FSI tax regime starting Jan 2021...(now extended FSI waiver till end 2026)

This post has been edited by MUM: Jan 5 2022, 02:14 PM


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i could be wrong,...but i found these in google...

INCOME EXEMPT FROM TAXES –
INDIVIDUALS
20. Remittance of foreign source income to Malaysia
Income arising from sources outside Malaysia and received in Malaysia by any person who is not resident in Malaysia (Sch 6 Para 28).
Effective Y/A 2004, exemption on foreign source income is extended to include a resident individual,
a trust body, a co-operative and a Hindu joint family [Sch 6 Para 28(1)].
https://www.mia.org.my/v2/downloads/resourc.../2017/B/B16.pdf

How To File Your Income Tax As A Freelancer
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.
https://www.comparehero.my/budgets-tax/arti...ncer-income-tax

Personal taxation:
Basis - Individuals are taxed on income derived in Malaysia. Foreign sourced income is exempt in Malaysia.
https://www2.deloitte.com/content/dam/Deloi...tax-en-2017.pdf

This post has been edited by MUM: Jan 5 2022, 06:48 PM

Perhaps can try this article, ...

individuals living in Malaysia who may be simultaneously working for a Malaysian employer and a foreign employer.
https://www.thesundaily.my/business/tax-mat...come-FA10320225

........Exercising employment means discharging the duties of employment. If the taxpayer is located in Malaysia and is performing his duties of employment for the foreign employer from Malaysia, then the taxpayer will be regarded to be exercising his employment in Malaysia, and the whole of his income will be taxed in Malaysia as the source of that income is derived from Malaysia.

While waiting for real tax sifus to comment, I kay poh abit, thus this is Not a qualified comment,

Since with holding tax had already been imposed, ... I will place my bet on a no need to file income tax return in that foreign country where that company pays you.

Example,
Who must withhold and pay WHT
A person (known as the payer) who makes payments of a specified nature (e.g. royalty, interest, technical service fee, etc.) to a non-resident company or individual (known as the payee) must withhold a percentage of the payment and pay the amount withheld to IRAS as WHT.

https://www.iras.gov.sg/taxes/withholding-t...IRAS%20as%20WHT.

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?

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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