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...

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?

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.

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/

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.

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.

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

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

Frankly, bros,... I think IRB wouldn't really care under what category ur incoming funds would be in. Capital exemption or capital gains or option premiums,...

Your best bet now would be to quickly open a foreign bank account to park your funds in offshore. The plan your funds movement as the development of this new removal of exemption continues to take place.

Luckily I have plenty of offshore bank accounts.

Bro,... just some suggetions,... you can do one of a few things now :-

1) remit back 6 mth to 1 year of funds now to cover yr expenses prior to Jan 1. As time goes by, procedures will be improved,... or this whole fiasco will just fail because it's not feasible to implement this for individuals.

2) start building up a local income-generating entity, eg set-up a business or something so that you won't need to use ur foreign income for expenses.

3) start establishing a residence somewhere else so that you don't need to stay in Msia for 183 days or more per any Financial Year. Then you would be a non-tax resident.

dwrk, i'm in same shoes, i'm a non tax resident now, all saving are offshore. But eventually will need to repatriate those fund back for living expenses at retirement.

I really don't see IRB have the capacity to differentiate which income are earned before 2022, they will tax as long as the income is remit to Malaysia on Jan 1 2022 onwards.

If you are in those countries where Malaysia had DTA treaties, then can apply for certificate of residence to avoid the duplicate taxation.

gonna argue that old money is foreign savings... not sure can win case... lol... got bank statements and tax forms... can easily prove you're remitting old money...

an example is esos and share awards... if my tax has been paid when given and on vesting... when you remit the proceeds it should be tax free... anyways...

It will be tedious explaining to the 'pegawai hasil' which is capital and which is dividend and furthermore, which is capital gains. You'll have to show your income statements and balance sheets from the foreign jurisdiction.

Definitely not, otherwise those Malaysians currently working in SG...

Forex is not "income" too unless you are a trader.

CPF forex part is taxable? Don't scare me.

So CPF is treated as "income" then. Noted.

If govt start taxing, its unlikely that they will let go this source of revenue. I do think its stupid to tax this as it just discourages people from bringing back $ into Malaysia (which would strengthen RM and bolster the economy). Also encourage the richer people to migrate overseas.

https://www.malaymail.com/news/malaysia/202...sidents/2021425

it says:

“If the review found that the income kept abroad originating from Malaysia has not been reported, additional assessment can be imposed together with penalties in accordance with the provisions of the Income Tax Act 1967,” it said.

meaning if u keep ur money overseas and NOT remiited back to Malaysia (though it was originating from Malaysia), it can be taxed ??!!!