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

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prophetjul
post Nov 21 2021, 09:54 AM

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i have a question here:

This tax is based on tax residency.
I believe it means one that is staying in malaysia for 180 days of the tax calendar year.

If one is staying in Aus, but having his/her income coming into Malaysian bank account, how does this work?

Thanks in advance.
prophetjul
post Nov 21 2021, 10:49 AM

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QUOTE(MUM @ Nov 21 2021, 10:43 AM)
My guess,....just guess
If you are staying in Australia, then you will be an Australian tax residence. Then bnm will tell their Australia counter part thru their information exchange agreement abt your bank a/c information in malaysia.
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Being denominated in MYR, after conversion to AUD, the tax bracket is probably quite low or negligible. smile.gif

QUOTE
Australian resident
As an Australian resident for tax purposes, you must declare income you earn anywhere in the world on your Australian tax return. This is known as your worldwide income. This includes any foreign income you may receive from:

pensions and annuities
business activities
employment and personal services
assets and investments
capital gains on overseas assets.
Australian residents (for tax purposes) with a tax file number generally pay a lower rate of tax than foreign residents.

https://www.ato.gov.au/Individuals/Income-a...rldwide-income/


QUOTE
Australian income tax rates for 2020–21 and 2021–22 (residents)
Income thresholds Rate Tax payable on this income
$0 – $18,200 0% Nil
$18,201 – $45,000 19% 19c for each $1 over $18,200
$45,001 – $120,000 32.5% $5,092 plus 32.5c for each $1 over $45,000
$120,001 – $180,000 37% $29,467 plus 37c for each $1 over $120,000


Maybe it is better to be taxed in malaysia afterall. laugh.gif

This post has been edited by prophetjul: Nov 21 2021, 10:54 AM
prophetjul
post Nov 21 2021, 11:00 AM

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QUOTE(MUM @ Nov 21 2021, 10:58 AM)
So that means, you will pay to Australian govt and nothing to do Malaysian govt unless that money in malaysia are used as an income generating platform in malaysia like property gain tax for example?
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Whatever is best for individual taxation. But the Aussie tax rate is pretty steep. So it is better to [ay Malaysian taxes i guess.
prophetjul
post Nov 21 2021, 11:28 AM

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QUOTE(MUM @ Nov 21 2021, 11:04 AM)
But if you are not a malaysia tax residence, how to go around that?
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Stay 183 days in Malaysia then. Haha
prophetjul
post Nov 21 2021, 01:02 PM

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QUOTE(MUM @ Nov 21 2021, 11:34 AM)
You will then become a Malaysian tax residence👍👍
But, Then as per post 216,
Australian residents (for tax purposes) with a tax file number generally pay a lower rate of tax than foreign residents.

Will you continued to be an Australia tax residence too?
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Lower as Aussie residents does not mean it is lower than Msian taxes. laugh.gif

QUOTE
Australian income tax rates for 2020–21 and 2021–22 (residents)
Income thresholds Rate Tax payable on this income
$0 – $18,200 0% Nil
$18,201 – $45,000 19% 19c for each $1 over $18,200
$45,001 – $120,000 32.5% $5,092 plus 32.5c for each $1 over $45,000
$120,001 – $180,000 37% $29,467 plus 37c for each $1 over $120,000

prophetjul
post Nov 21 2021, 01:22 PM

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QUOTE(MUM @ Nov 21 2021, 01:05 PM)
I dont mind paying Australian taxes if I can make Aussie dollar n still hv enough to Aussie dollar to save.
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i think which ever allows me to pay the lower tax. However, having said this maybe better to [ay Aussie taxes as it is put to better use. Look at their infrastructures. Class A compared with our class F infra.
prophetjul
post Nov 23 2021, 11:38 AM

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QUOTE(dwRK @ Nov 22 2021, 11:27 AM)
foreign source income implies you're local tax resident/payer with foreign income... if you're now a foreign tax resident with foreign income, this law probably doesn't apply to you...

but you can't simply stay >180day somewhere and declare you're not a local tax resident anymore... need to clear tax with irb and tell them sayonara...

and now any income in malaysia (e.g., rent out your old house, etc), you supposed to pay a flat-rate non-resident malaysian tax...and also top-up foreign source income tax to you australian tax...
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Thanks mate.


prophetjul
post Dec 23 2021, 10:00 AM

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https://www.malaymail.com/news/malaysia/202...-inheri/2030443

MORE taxes coming our way!
prophetjul
post Dec 23 2021, 10:06 AM

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QUOTE(MUM @ Dec 23 2021, 10:02 AM)
World Bank says Malaysia ‘has plenty of scope’ to tax capital gains or inheritance, even as politicians say the contrary....

i liked the "politicians say the contrary"
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So do i. But when they need to finance their yearly excesses, no tax income is too much.
prophetjul
post Dec 23 2021, 10:18 AM

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QUOTE(MUM @ Dec 23 2021, 10:08 AM)
but with the current shape of the Govt stability in its composition,...was wondering what are the changes of it happening  hmm.gif
but then, i thought there was a mention in another thread that Govt is, will or may consider use EPF as their piggy bank/national bank  mad.gif
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Nothing will be surprsing from this government.
prophetjul
post Dec 23 2021, 10:36 AM

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QUOTE(MUM @ Dec 23 2021, 10:30 AM)
thumbup.gif
for me,...until that surprise became a "surprise",....i will still consider that news as a noise to sell the news
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Look at EPF. THe MOF gave instruction to EPF to donate RM10 million to flood victims. This sort of action means the fellow has NO accountability and responsibility. Woe to EPF!
prophetjul
post Dec 23 2021, 10:41 AM

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QUOTE(MUM @ Dec 23 2021, 10:40 AM)
careful,...i think we BOTH have to stop this....
else later kena "Report" or kena comment  sign0006.gif
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icon_rolleyes.gif
prophetjul
post Dec 23 2021, 02:37 PM

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QUOTE(jayb2 @ Dec 23 2021, 10:50 AM)
Pandora box has been opened with no objection from syukur species, so expect more abuse in the future.
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That is the fear. Once they have started and there is no major protest, it will only get worse.
Today it is RM10mil. Tomorrow it will be RM100 mil. Next it will be RM1 billion. No blinking of the eyes while they are it too.
prophetjul
post Dec 27 2021, 10:25 AM

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QUOTE(VCBlogger @ Dec 27 2021, 09:51 AM)
Usually if your an expat you should negotiate your package nett of tax which means all tax for the country ( Australia) is paid by your employer and arranged by your employer.

Companies sometimes dont regard you as an employee but as an external vendor ( e.g. cause you wont enjoy staff benefits like medical, etc) as such what they pay you could be without any tax deducted and they assume you will pay the relevant tax at the country of residence ( which in TS Wife Case Malaysia). So please check with your employer what they pay and did not pay,

Basically they treat you like engaging a foreign vendor and pay you a fixed sum per contract then you settled your tax at LHDN ( Malaysia)

If your working in Singapore ( means you stay in malaysia less than the prescribed period and is in Singapore for the prescribed period ) you will be a tax resident of singapore but not a tax resident of malaysia.
As such your not liable to LHDN. Proof can be via your passport. Transferring CPF money back is not taxable as long you have evidence and proof that its CPF money.

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No longer from 1st Jan 2022.

That is the reason for the lengthy discussion here! laugh.gif
prophetjul
post Jan 5 2022, 02:34 PM

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Why are all the discussion for foreign income still going on seeing that there is no change from before for individuals?

That Foreign income for individuals will not be subjected to tax till 2026.

 

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