QUOTE(Babylong90 @ Dec 6 2016, 05:05 PM)
As long as your contract is with local company, it doesn't matter whether your salary is paid by local or oversea company. Even that your work is performed outside Malaysia, your employment income is still deemed to be derived from Malaysia.
This is clearly define in Section 13(2) of Income Tax Act 1967.
Hope it clarify your doubt
QUOTE(Babylong90 @ Dec 6 2016, 05:09 PM)
Whether you are tax resident or not is not really important in this case as any employment income derived from Malaysia is still taxable. For example, a non tax resident may have work contract with local company. As such, his employment income will be taxable in Malaysia.
However, it will be important to determine your tax resident status when you submit your tax return as it will affect your tax rate and tax relief which only Malaysia tax residents entitle to.
Ur answer above is what my understanding too.. that's y I'm curious on why is the place of work determine whether the income is taxable or not.. resident status n non resident status is just to determine the income tax rate to be pay..
For the scenario I given is just exactly what my friend have.. he is engineer who is consider as "freelance", he can be unemployed for few months.. his work is from local recruitment agencies who recommend work to him at oversea. Some project is china co pay salary to him, some is through agency. My advice to him is his income is taxable since his contract is with local agency even his salary is pay by oversea co unless he can get the oversea co to issue a employment letter to him.
So, after i read the other sifus here mentioned is based on where the work performed, which is different with my understanding, that's y I try to ask further so that sifus here can advise..