More or less is a confusing info

Did anybody read anywhere saying that ALL FOREIGN INCOMES MUST BE REMITTED BACK ?

Did anybody read anywhere that ALL FOREIGN INCOMES will be taxed regardless of where they are ?

Did anybody read anywhere that Msia will impose INTERNATIONAL TAXATION ?

Yes, just attended a talk conducted by tiger bank and one of the big 4s.

Yes, all foreign sourced income remitted back to msia will be taxed.

income arising from dividend, interests, etc, but excludes capital gains, so if you use the income to reinvest and make further gains, then they will see how they will tax you, this part is still pending clarifications from the MOF, but be sure to keep your documents ready.

however, they are also trying to seek for exemption for certain things like dividend income, which has already been taxed at source country, should not be subject to tax again. but this is now still pending from MOF.

Will share more once I hear from them again. thanks.

Edit: on the bolded, especially for those companies with real substance, i.e. for example, manufacturing plant overseas, hiring ppl, paying overheads, sell goods, making income then declare dividend type of companies/businesses.

Wait so capital gain is not taxed?

looks like a YES,
but income from that capital will be taxed   

thanks for update...

i just wanna know monies in overseas banks, stocks, etc. as at 31 dec 2021, are these tax-free or not when remitted in future...   these are currently tax-free when remitted, the new law shouldn't retroactively tax "old fsi monies"...

KUALA LUMPUR, Nov 16 — The Inland Revenue Board (IRB) is offering a Special Income Remittance Programme (PKPP) to Malaysian residents who have income deposited abroad.

The agency said this is in line with the abolishment of tax exemption on foreign-sourced income, which was announced by Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz when tabling Budget 2022.

“The programme will be implemented from January 1 to June 30, 2022, during which a gross tax rate of three per cent will be imposed on income repatriated back as proposed under the Finance Bill 2021

“There will be no audit review, investigation or penalty on income brought in during the PKPP period; all income brought in will be received in good faith by IRB,” it said in a statement today.

IRB said other criteria include the income must be brought in or remitted within the PKPP period and taxpayers must make a declaration to participate in PKPP at the latest within 30 days after the expiry of the period.

Besides that, it said, tax payment must be made in accordance with the normal payment order prescribed for the year of assessment 2022 or 2023, whichever is applicable.

The programme does not cover income derived from Malaysia which is subject to tax for the year of assessment 2021 and subsequent years of assessment and remitted or brought back in the period of PKPP.

“After the expiration of the period, IRB will review and examine the income information of Malaysian residents deposited abroad that has been received through tax information exchange agreements with other countries.

“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.

Therefore, IRB said taxpayers are encouraged to participate in this special programme in order to update their tax position.

It added that it would issue a list of frequently asked questions and guidelines related to PKPP to the public which could be found at IRB’s official portal. — Bernama

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

  mentioned: income repatriated back,...what about capital or income with capital + capital gained over the years? how to separate it out?   

Just curious, did you ask them about funds like ASNB, EPF or mutual funds that invest overseas? What kind of tax treatments are given to their foreign dividends/interests etc. ?

... old foreign income from few years back... hence the problem if taken literally it is taxable

Maybe can hold 7 years until the statue runs out and remit...

Wanting to thank Tehoice here for the good updates shared with us from his seminar,....

Bros,... I think IRB has a lot of work to do after this. I honestly doubt the tax officer will chk all our documents to justify whether to grant exemption or not.

Thanks @tehoice, a little clearer now.

1) Capital gain not taxable
2) dividend taxable
3) If both forever not remitted back to MY, then not taxable, correct ar ?

HK also grey-listed, but it didn't bow to the EU and retains its tax structure. Seems like MY has no bargaining power.

keep it simple lah... imho

send 100k out... bring back 100k... capital money, no tax

share sold with profits... bring back capital gain profit 50k, should be no tax

share paid dividend $100... bring this back kena tax

how you roll your money, margin loan or not... all these are inconsequential...

just follow dividend reports showing the values...anything else is capital & profit...

I would only bring these dividends back after retirement below taxable threshold... so effectively paying zero tax lawfully...

so just make sure at any time, account value > sum total of dividends received... this proof you haven't brought back any dividends...

Bros and Sis,... the word here is always : remit back.

The moment you need to bring back in,... then you'll have start thinking what is the right thing to do.

Like,.... in my case now,... I am thinking,... since my USD dividends will be tax-withheld anyway by the IRS, I can bring them back to Msia and will enjoy tax-credits.

But I can't back any SG dividends at all.

Let's see after writing the above, will the faqs change to say that USD dividends will never be granted tax credits, regardless,....