Hi bro,

I am kinda confuse with this....


My wife living and working from home in Malaysia. Her company is in Australia. Her salary is TTed to her Malaysia bank on a monthly basis from Australia.

In this case, is this income taxable?

I found on LHDN it is not taxable. (http://www.hasil.gov.my/goindex.php?lgv=2&chg=1)

Income Remitted from Outside Malaysia

With effect from the year of assessment 2004, income derived from outside Malaysia and received in Malaysia by a resident individual is exempted from tax.

But some said it is taxable....i am confused....

Please help.

taxable - becos the work done is in malaysia, not overseas.

Check out this post for more info https://forum.lowyat.net/topic/1203859/all
Hope it helps

This post has been edited by oOoproz: Mar 17 2015, 04:19 AM

Yes you still need to declare it..

Keep quiet until they send a love letter to you.
Or visit your nearest LHDN office to clarify.

What if the Australia income is a freelance job (2nd income, paid in USD TT from overseas)? If she have a regular job in Malaysia (Malaysia company, paying in RM), same rule apply? The 2nd income (Australia job income) still need to declare?


Thanks much !!!!

Yeah.. legally you should declare. Are you taking big amount on the freelance?

legally, u r required to declare.

it is the same with rental income.

if u dun declare, just be aware that if and when at some time, u get audited by tax people and can't explain certain things on certain documents, u r liable for a hefty fine.

of course kena tax lar. You do the job here, cari makan here and expect no tax??? WTF.

+100

IMO legally required, but as long as they do not submit EPF then LHDN wont even know she is even working.

Noted and thanks everyone.

If our boss spend our tax money wisely of course we are happy to pay it. But they spent on beli cincin, pergi saloon, beli kapal terbang, masuk poket etc (many many more).... I am sure everyone not very willing to pay.

Work done in Malaysia, so officially need to declare and submit LHDN. No matter is primary job or secondary/tertiary/part-time. As long as it is an "income".

Tax Audit can be done easily, all foreign TT have records in BNM.

How could I get a job from home like your wife did? I had a wish, I just wanna work at home. Can sleep and eat anytime. Can you pm me the detail of the job?

me too

It will be taxable I assume. Just curious, I am sure the money has some kind of deduction before it is TTed over to Msia? wow sakit if kena twice tax.

Hi all.

I am looking for a way to reduce my total taxable income to save more money. I have a daily full time job in Malaysia and a part time service-based freelance foreign income. What is the best way to save on tax payable? The freelance income is recurring monthly and TT to my bank account from US but amount is not fixed. May I know which is the best option below?


Option 1:
Find a job in Singapore and stay there since the tax rate is lower than Malaysia. Thus, reducing my total taxable income while the freelance income remain TT to Malaysia bank account. In other words, income tax is file in both countries. Is that possible?


Option 2:
Open a sole proprietor/Sdn. Bhd company. Outsource my work as project based to foreign people in other country around the world. The outsource work will be use as deduction for business expenses.

There is very little expenses can be deduct since the service work can be done at anywhere. Maybe require to purchase softwares or server hosting as business operation also.

Income derived, means you work there and generate income there.

In order words, this term is apply only when the person is physically work at there. The tax should have been file at there also. So, when transfer back to Malaysia is exempted from tax and consider as transferring from own account, not directly from company.

Yup, a lot of people misunderstand that if money is come from overseas, it is tax exempted, which is not true.
Company here doing export, also receive payment from overseas but still it is local derived income and subjected to tax here.

It is not about where the money being paid or from, but where the money being generated.

The reason of it is given tax exempted (apart can induce inflow of money), because the income may already taxed at there, so unfair to have double taxation.

Based on our taxation system, Section 3 of ITA.



Your case applies.

Hence, taxable. Hope it helps.

This post has been edited by zhou.xingxing: Mar 19 2015, 12:15 PM

Any update on this?

Just curious to know. It seems that we still to declare and pay for the tax right?

Hi, I have a question. I work as a freelancer internationally as a digital nomad. I am a Malaysian citizen but haven't been back for years. I have a bank account in the Netherlands and my clients are from China, US and Turkey. All my income goes into the Dutch bank account .
I work as a freelance English teacher and would like to set up own teaching lessons.
To whom do I pay tax to?

How about if he is doing doorship sales and earn the differences and the clients all are located overseas?

This post has been edited by jack2: Mar 7 2017, 06:07 PM

Depends on your residency, ie which country you are spending the most in a year.

If mostly in MY, then declare MY tax although income come from foreign sources and deposit into foreign accounts.

if your primary residence is Netherlands, then declare Netherlands tax as per their tax code.

This post has been edited by gark: Mar 7 2017, 07:50 PM

Is he doing the dropship in Malaysia if yes, please declare income for MY taxes.

This post has been edited by gark: Mar 7 2017, 07:51 PM

No, all international clients...

Does not matter, as long as HE DO the dropship work based in Malaysia. Need to declare MY tax.

https://ringgitplus.com/en/blog/Career/How-...reelancing.html



So is this just bad info?

More or less is a confusing info

wah you are replying to a 4-yo post.

yeah... holy resurrection wth man...

anyways since this resurfaced... heads up...

was informed IRB going to remove the exemption on foreign sourced income... probably starting next year... they writing up the law now...

GSK & Associates, May 24, 2019

FOREIGN-SOURCED INCOME - MALAYSIAN INCOME TAX
Updated: Nov 17, 2020

Foreign-sourced income is NOT subject to tax in Malaysia, except for certain activities, such as banking, insurance, and air and sea transport operations.


References - Income Tax Act, 1967
Section 3 of the Income Tax Act, 1967 (ITA) states that “income shall be charged for the income of any person accruing in or derived from Malaysia or received in Malaysia from outside Malaysia”.
The phrase accruing in or derive from Malaysia means the source of income must be in Malaysia

With effect from YA 2004, foreign source income derived from sources outside Malaysia and received in Malaysia by any person is NOT subject to Malaysian income tax

Section 12 of the Income Tax Act, 1967 is about the determining the source of income or derivation of income

The tax exemption is stated in the Schedule 6, Paragraph 28 of the Income Tax Act, 1967 - click the link below for the PDF copy of the Schedule 6;

www.hasil.gov.my/pdf/pdfam/Schedule_6.pdf
http://phl.hasil.gov.my/pdf/pdfam/Schedule_6.pdf


How to determine income derived from Malaysia or Outside Malaysia (Foreign-Sourced)

Derivation of income is defined in Section 12 of the ITA.

Determining the source of income is indeed difficult and often open to discussion and also can be complex and contentious.
There is no exact guide that can be applied to every scenario to determine whether an income is Malaysian-sourced or foreign-sourced.
It depends on the nature of the income and of the business transactions which give rise to such income.


Generally, the income shall be deemed derived from outside Malaysia if the income is attributed directly to activities conducted outside Malaysia.
The burden is on the tax payer to prove that his income is foreign-sourced.


As per the Section 12(1)(a), gross income that is not attributable to operations of business carried on outside Malaysia would be deemed Malaysian derived income.


Therefore, if the gross income is related to the work performed outside Malaysia and the taxpayer wishes to treat it as foreign source income, the taxpayer would need to substantiate that it is attributable to operations of business carried on outside Malaysia.


General points to consider in determining source of income

Where does the contracts concluded - in Malaysia or Outside Malaysia?

Whether the ownership risk of the business is in Malaysia or Outside Malaysia

Whether services are rendered in Malaysia or Outside Malaysia


Briefly on Section 12 (1) & 12 (2):
more ....
https://www.gskassociates.net/post/foreign-...sian-income-tax

latest updates...
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. in response to global developments such as the global minimum tax and the recent European Union’s action to include Malaysia in its “grey list”.
https://www.theedgemarkets.com/article/delo...crease-tax-bill


This post has been edited by MUM: Oct 30 2021, 08:19 PM

Found the necromancer! *Pull out pitchfork*

told y'all...

So Malaysian residents will be taxed on foreign sourced income remitted to Malaysia from 1 Jan 2022. How to get around this? I might go work overseas next year and most of salary will salary TT to my account here. Will I be considered Malaysian resident if I spend most of my days abroad? I know LHDN has few criteria to define Malaysian Tax resident. Is this same criteria to define Malaysian resident?

if you go out as expat... then you are not considered as Malaysia tax residence...

the transition year... say work 6 months in Malaysia, then move to country X... then you'll need to segregated and choose how you want to be taxed

if company send... they probably will provide tax agents to handle your taxes

Mum, this doesn't age well

https://www.theedgemarkets.com/article/delo...crease-tax-bill

Why on earth in budget, only now they say foreign income now taxable from January 2022? Dont tell me they only targeting those income overseas and living overseas.

If you stay out of Malaysia more than 180 days, then you file as Non Resident Tax, form M. Income shall be those derrive from Malaysia soil only.

This is confusing, sorry Ayam English is bad,

I’m doing freelance and have some affiliate / commission for what I sold to a U.S company, I get commission in USD.

I shall assume it’s taxable right ?

I haven’t remit any money back atm.

according to this Jun 25, 2019 blog postings

What if your freelance income is from outside of Malaysia?
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.
https://www.biztory.com.my/freelancer-have-...-in-malaysia-2/

veiven, updated info,...just in case you missed this latest info
but, but
In the Budget, 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.
https://www.theedgemarkets.com/article/delo...crease-tax-bill

This post has been edited by MUM: Oct 30 2021, 08:17 PM

living overseas income overseas not affected

this targeting online sellers/traders, freelancers, etc...

info obsolete come 2022...

Yes taxable... how to calc have to wait for 2022...

prior to 2022 not taxable, but better take snapshot ye2021

Cause govt is broke and not able to find any way to raise taxes so this is best way to tax and grow the local economy instead

I believe so as well, it’s targeting to income not under taxable categories all these while.

Source (1): LHDN: https://phl.hasil.gov.my/pdf/pdfam/PR_12_2019.pdf

Source (2): https://www.thesundaily.my/business/is-fore...xable-HF7986977

If individuals are managing their business or carrying out the business of investments overseas from a base in Malaysia and most activities in connection with the purchase and sale or the business decisions needed to run the overseas operations are undertaken in Malaysia, income from such activities, although earned overseas, will be treated as domestic source and taxed in Malaysia. The reason for taxing such income in Malaysia is because the key activities giving rise to the generation of that income is based in Malaysia.

Another thing I want to point out is this. In Malaysia, cash-basis accounting is not allowed when it comes to tax-related calculations.
The rule is to use accrual accounting which means you have to file for tax based on your statement/invoice date.
This is true EVEN if you haven't remitted back the money.
See Source(1) for official examples from LHDN.

But in my case, all activities are run overseas.
As in, I earn sth like sort of a middleman fees.

I suppose that also means the activities are in Malaysia because I’m in Malaysia ?

I can tell you the biztory post is 100% wrong.

There is A LOT of confusion regarding "foreign income."

Foreign Income has a SPECIFIC definition. Not ALL money you make from abroad is considered Foreign Income.
The KEY is the LOCATION where substantial economic activities are performed.

Examples of Foreign Income
1. You live in Johor, commute to work in Singapore daily (pay taxes in Singapore instead)
2. You're a Malaysian YouTuber, you live and make videos in Tokyo that generate revenue from ads. (pay taxes in Japan instead)
3. You found a job in Australia after graduating in 2015 and worked there until 2019. The salary is foreign income. (pay taxes in Australia)
4. You're a freelance graphic designer. Your client from the US paid you to work at their US office for x months. (pay taxes in US)

NOT FOREIGN INCOME:-
1. You live in Johor, you travel daily to wholesale nasi lemak to someone in Singapore.
2. You're a Malaysian YouTuber, you live and make videos in Perlis that generate revenue in USD.
3. You found a job in Australia, but you work remotely from your home office in Sabah. You're paid in AUD. It's NOT foreign income.
4. You're a freelance graphic designer. You're based KL, but your clients are from the US.

For your freelance work, I'm certain that it's not considered "Foreign Income." Since you said you're in Malaysia.

For your affiliate marketing biz, I guess it depends. If you don't actively work on it, and the whole website, server, etc. are all overseas. I guess it can be considered "foreign income."?

However, say you work on it actively from Malaysia, doing things like adding content, maintenance, paying bills, advertising, marketing, etc--I would say it's not considered "foreign income."

Your safest bet is to ask an accountant OR call LHDN directly.

This post has been edited by MUM: Oct 30 2021, 11:30 PM

I see, ok thanks !

i think your examples are terbalik and some wrong

if I'm expat living, working, paying tax oversea... IRB has nothing on me... I'm tax residence country X and legally obligated to country X only, unless I also have income in Malaysia, then I also pay a flat rate tax on that income to IRB

foreign income is exactly that... you are local tax payer who is earning foreign income... currently you are exempted from any tax, but next year you need to pay

anyways I'm meeting IRB next week... will ask

This post has been edited by dwRK: Oct 30 2021, 11:43 PM

Please tell IRB to exempt dividends and capital gains from overseas sourced investment...

Yes, please ask them.

i no such power eh

I'm quite sure capital gain is not considered as foreign income... but dividends & interests should be

but I dunno the threshold when investment becomes trading... selling covered calls every week is probably not investing and if IRB put you in the trading bucket... your capital gains become taxable as foreign income

Check out Example 2 in this article: https://www.theedgemarkets.com/article/taxp...axable-malaysia

Tax treatment

Ahmad exercises employment in Singapore because he physically carries out his employment duties in Singapore.
Therefore, he derives employment income from Singapore, which, being not derived from Malaysia, is not subject to income tax in Malaysia.

When Ahmad brought his Singapore earnings to Malaysia to acquire the orchard, the foreign-sourced income received in Malaysia is specifically tax exempt under Paragraph 28 of Schedule 6 of the Income Tax Act.
The rental from the Singapore flat is derived from Singapore because the real property is situated there.
The source of the rental income is in Singapore. Ahmad receiving the rental income in ringgit in Malaysia does not change the fact that it is foreign-sourced income, which, even when received in Malaysia, is specifically tax exempt.

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.
This is subject to tax in Malaysia as business income. The fact that it is paid in a foreign currency and in a foreign country does not change its Malaysian-derived nature. The proceeds must be brought to tax in Malaysia.

very clear don't they?

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

Ramjade, share your crystal ball with me next time... 🤣

https://www.straitstimes.com/singapore/tran...vel-from-nov-29

This post has been edited by Hoshiyuu: Nov 9 2021, 03:32 PM

See below.
My assumption was based off a news I saw about a guy travel to China for business stuff and he had to quarantine and swab 4 times if I am not mistaken. So yeah, borders are not exactly close. Just need to quarantine.

Never thought that news will be released as I thought sg govt is holding back to prevent Malaysian entry.

Ramjade must be Irish - luck of the Irish and four leaf clover all that

By the way, I've been wanting to ask in the other thread too - but when you say "use Bigpay" you mean Malaysian Bigpay account, reloaded via SG/Multicurrency Debit card, then with BigPay holding MYR, spend globally? I feel like I am missing something when you have mentioned twice that BigPay is the key to spending foreign income internationally,

Sorry if I terribly misquoted the information.

Malaysian bigpay reloaded with RM and spend overseas. No way you can get SG bigpay. Another alternative is wait for youtrip and mymy to start operating maybe next year. I hear dit can be used to store foreign currency. But how, not sure yet.

Thanks man. And yeah, hoping we can get some BNM approval on fintech that allows storing and spending foreign currency directly.... or foreign fintech that allow direct Malaysian registration

Thanks Bro.

Since this foreign source income new regulation will be revised in 2022.

My question is if I continue to accumulate and it may reach certain amount remain in Singapore acct.
I dont have intention to bring back malaysia since my current income is sufficient to cover my expenses here.

All income coming into my spore account with valid documentation ie commission agreement if bank ask to provide, can I leave it there for my future education plan for my kids.

Thank you.

since you will using it over there,...M'sia govt should not have reason to questions you...unless, it you need to bring it back,...then they may question you....

just my guesses only....

This post has been edited by MUM: Nov 9 2021, 06:48 PM