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

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dwRK
post Jun 11 2023, 11:30 AM

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QUOTE(Hansel @ Jun 7 2023, 07:55 PM)
Thank you, bro,... for the heads-up.

I have not had any Outbound for many years,... all my overseas dfunds are earned from my dividends and my programs as in my Options, Currency Speculations, etc,... I also earn some income from overseas from doing consultation work.

I am subjected to tax from the foreign govt when I perform this consultation work. So,... in essence, I am a "Malaysian working abroad", notwithstanding where I stay physically....

Whatever I remit back will be after paying taxes to the foreign govt...
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np bro...

yeah... when you fly out for in-country work... payment is net of withholding tax, i think all countries do this... just keep these tax docs forever lor... even if expired i'd keep them to explain away other winnings that may or may not be subject to fsi tax... hahaha...
dwRK
post Jun 13 2023, 09:37 PM

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QUOTE(Hansel @ Jun 12 2023, 05:45 PM)
If I am a Msian working abroad, then all my income, incl dividend income is subjected to the taxation authorities of the foreign govt.. When this foreign income is subjected to 'foreign tax', the LHDN will not tax again when I remit such income back to Malaysia.

I wonder how they will treat this dividend income portion of my total income,...
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my bad... i wrongly assumed you fly out for consultation work... lol... expat say expat lah... hahaha...

expat pay and dividends/interests income derived from it for sure free of fsi tax prior to our fsi law taking effect... i'd call them "savings" biggrin.gif

during this honeymoon period until 2026, there are some qualifying conditions...

after honeymoon over, practically all "new income" subject to fsi... but i'll have to read the guidelines again...

i know one ongoing funny case... local company send after-tax profits/dividends to foreign shell owner... foreign shell owner sends it back to final big local owner... this money is now considered foreign sourced... because our law only looks at the immediate inbound leg... big local owner now calling it a "loan" to avoid pay immediate tax whilst the tax lawyers work it through with lhdn... lol...
dwRK
post Jun 13 2023, 09:47 PM

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QUOTE(Wedchar2912 @ Jun 12 2023, 07:10 PM)
The last part I believe many of us are waiting to know the answer.

Rationale is how would LDHN know that when we remit back say 1 million ringgit equivalent, how much of the funds are from income already taxed and how much is from say bank interest/share dividend?
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for now... lhdn operates on self-disclosure... you don't tell, they wont know... but they have power to audit and impose harsh penalties... if audited, onus is on you to prove the funds are after-tax both foreign and local...
dwRK
post Jun 13 2023, 09:52 PM

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QUOTE(Hansel @ Jun 13 2023, 11:18 AM)
I think,... at the end of the day,... it all boils down to how much is the LHDN able to convince the foreign govt to cooperate with them,... I'm jumping the gun answering like this,... maybe this answer sounds illogical,... but,.. even with the CRS procedure in place, if the foreign tax authorities don't provide whatever details the LHDN asks for,... there is just no way for LHDN to 'count'.

So,... we continue to pray msia will remain a weak ctry, no foreign govt wants to waste their time on us.
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we're all moving towards global minimum 15% tax... makes life easy for everyone tax ppl... laugh.gif
dwRK
post Jun 13 2023, 10:11 PM

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QUOTE(TOS @ Jun 13 2023, 09:50 PM)
So CRS is useless? (Common Reporting Standards)

Apologies for the dumb question. Not an insider at LHDN. tongue.gif
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takes time to get everything and everyone on board... des why we're moving to tin...

also our tax forms are changing... disclose of foreign accounts few years back, now on fsi...
dwRK
post Jun 13 2023, 11:41 PM

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QUOTE(Wedchar2912 @ Jun 13 2023, 11:03 PM)
So until our LHDN comes out with much better guidelines and our trust in them improves, the best advice to all is to be smart about this and not to be FLASHY.

those with local assets, any reason to remit funds back?  hmm.gif
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correct advice is... just pay your taxes ppl...

i wanna spend my money... not hide under pillow or offshore account... living in fear of tax man... gg cant take it with you...

reason to remit back... easier for next of kin...
dwRK
post Jun 14 2023, 11:51 AM

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QUOTE(Wedchar2912 @ Jun 13 2023, 11:44 PM)
That maybe the correct advice, but not the best.

even if you paid all accurate taxes, if you are flashy, ldhn still come kacau you.
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QUOTE(xander2k8 @ Jun 14 2023, 03:45 AM)
As long as you have major several big purchases they will still come after you even you have paid the accurate taxes 🤦‍♀️ and they can be aggressive to tax your future earnings even though you have not collected the earnings yet which is why when audit they always target SMEs 🤦‍♀️
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to this i say... let them come... nothing to hide... usually an email with supporting docs will settle issue...

made my money... paid my taxes... wanna enjoy nice things wink.gif

evasion ppl will forever looking over shoulders for tax men... this is no life...
dwRK
post Jul 28 2023, 11:04 AM

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QUOTE(adam1190 @ Jul 27 2023, 05:59 PM)
Hi, understand that if the work is performed in malaysia, we need to file and pay income tax to Malaysia government.

My question is do we need to file for income tax return in the foreign country where our company is based in as we do not have any tax file number in the foreign country and wittholding tax has already been impsoed?

Thanks smile.gif
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my understanding....

there is a foreign company... this company is liable for company tax to its foreign country

company pays for services in malaysia... this company pays withholding tax to its foreign country

local person gets paid... pays malaysia income tax... file for tax credit from witholding tax paid... does not pay foreign country income tax

This post has been edited by dwRK: Jul 28 2023, 01:38 PM
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