Welcome Guest ( Log In | Register )

499 Pages « < 67 68 69 70 71 > » Bottom

Outline · [ Standard ] · Linear+

 Income Tax Issues v4, Scope: e-BE and eB only

views
     
klthor
post Dec 3 2016, 02:19 PM

Look at all my stars!!
*******
Senior Member
5,469 posts

Joined: Jun 2008
QUOTE(Hansel @ Dec 2 2016, 06:34 PM)
Why do you call this tax evasion ?
*
if you eanr your income in malaysia you pay malaysian tax, thats the law. unless you are talking about income earn outside malaysia, but judging from your word 'send money for surival' that doesnt seem to be the case.
Hansel
post Dec 3 2016, 02:40 PM

Look at all my stars!!
*******
Senior Member
8,950 posts

Joined: Aug 2010
QUOTE(klthor @ Dec 3 2016, 02:19 PM)
if you eanr your income in malaysia you pay malaysian tax, thats the law. unless you are talking about income earn outside malaysia, but judging from your word 'send money for surival' that doesnt seem to be the case.
*
I thought abt this too,... to be more specific, I think the best way to describe this would be : if the income-generating activities are being performed in Msia, then such income MUST be declared to the Msian tax collection authorities, irregardless of who pays us the income, and where it is paid into,... yeah,...Yes, then must declare already,..

The statement 'sending money for survival' actually does not matter, and is beside the point to this argument. For example, one could be performing the income-generating activity outside Msia, ie working in Sgp, but at times, he could be staying in Msia, then he can always send money back to Msia for his survival activities, without needing to declare his income to the Msian tax collection authorities.
Ballz8787
post Dec 5 2016, 06:09 PM

Getting Started
**
Junior Member
101 posts

Joined: Jul 2005
From: ''Kuala Lumpur''



Hi guys,

Just wanna find out; when is the start date for the submission of 2016 Income Tax?
wil-i-am
post Dec 5 2016, 08:32 PM

10k Club
********
Senior Member
10,001 posts

Joined: May 2013
QUOTE(Ballz8787 @ Dec 5 2016, 06:09 PM)
Hi guys,

Just wanna find out; when is the start date for the submission of 2016 Income Tax?
*
U mean eFiling?
Ballz8787
post Dec 5 2016, 10:23 PM

Getting Started
**
Junior Member
101 posts

Joined: Jul 2005
From: ''Kuala Lumpur''



QUOTE(wil-i-am @ Dec 5 2016, 08:32 PM)
U mean eFiling?
*
Yup eFiling. Wondering if I can submit right away in January 17. Or LHDN will only allow people to start submitting on a certain date
cherroy
post Dec 5 2016, 10:32 PM

20k VIP Club
Group Icon
Staff
25,759 posts

Joined: Jan 2003
From: Penang


QUOTE(klthor @ Dec 1 2016, 02:38 PM)
that is why normally i tried to avoid to use 'foreign income not taxable', because the key word is not foreign income or local income. the key word is where you perform your work to earn that income.... we have discussed on this issue multiple time in LYN forum, i guess some1 should create a topic specially on this and make it sticky. so remember the key word and do not look at who pay you, where you receive your pay or what currency.... just look at where you PERFORM YOUR WORK. well there are exceptional industries just as shipping, insurances etc etc but that sums it all. and remember to think of exporter in malaysia, do they pay tax?
*
A lot of people mis-interpret the foreign income definition as "paying by foreign company", this is incorrect and out of context.

Foreign income in tax term is the income generated at foreign place, aka you work at foreign place and being paid.
rapple
post Dec 5 2016, 10:40 PM

Y N W A
*******
Senior Member
2,016 posts

Joined: Oct 2014
From: Ipoh,Perak
QUOTE(Ballz8787 @ Dec 5 2016, 10:23 PM)
Yup eFiling. Wondering if I can submit right away in January 17. Or LHDN will only allow people to start submitting on a certain date
*
If not mistaken usually starts on March / April.
mamamia
post Dec 6 2016, 07:58 AM

Look at all my stars!!
*******
Senior Member
5,928 posts

Joined: Jun 2005
QUOTE(cherroy @ Dec 5 2016, 10:32 PM)
A lot of people mis-interpret the foreign income definition as "paying by foreign company", this is incorrect and out of context.

Foreign income in tax term is  the income generated at foreign place, aka you work at foreign place and being paid.
*
But, if u hire by local co and the co send u to oversea to work for 1 year, is the 1 year income taxable? I thought we need to see where is the co too..

2 different scenario..

1st: contract worker with local co and work performed oversea, salary paid by oversea co..

2nd: contract worker with local co and work performed oversea, salary paid by local co..


wil-i-am
post Dec 6 2016, 10:48 AM

10k Club
********
Senior Member
10,001 posts

Joined: May 2013
QUOTE(Ballz8787 @ Dec 5 2016, 10:23 PM)
Yup eFiling. Wondering if I can submit right away in January 17. Or LHDN will only allow people to start submitting on a certain date
*
I dun think tat early
Most likely from 1/3/2017 onwards
ghostshell
post Dec 6 2016, 11:59 AM

Getting Started
**
Junior Member
278 posts

Joined: Feb 2007
all sifu,

want to ask if i bought a laptop on year 2014 aug, i fill the computer tax relief on 2015, so if say i bought laptop this year dec 2016, does this consider only 2 years, is count by year or month ?cant fill for tax relief on next year ?

thought want use the 3k tax relief before it change =p

does ms surface pro 4 consider laptop/pc or is tablet category and not entitle for tax relief ?
rapple
post Dec 6 2016, 12:11 PM

Y N W A
*******
Senior Member
2,016 posts

Joined: Oct 2014
From: Ipoh,Perak
QUOTE(ghostshell @ Dec 6 2016, 11:59 AM)
all sifu,

want to ask if i bought a laptop on year 2014 aug, i fill the computer tax relief on 2015, so if say i bought laptop this year dec 2016, does this consider only 2 years, is count by year or month ?cant fill for tax relief on next year ?

thought want use the 3k tax relief before it change =p

does ms surface pro 4 consider laptop/pc or is tablet category and not entitle for tax relief ?
*
2014, 2015 & 2016 is 3 years.. pretty sure you can't claim for 2016..


cherroy
post Dec 6 2016, 02:55 PM

20k VIP Club
Group Icon
Staff
25,759 posts

Joined: Jan 2003
From: Penang


QUOTE(mamamia @ Dec 6 2016, 07:58 AM)
But, if u hire by local co and the co send u to oversea to work for 1 year, is the 1 year income taxable? I thought we need to see where is the co too..

2 different scenario..

1st: contract worker with local co and work performed oversea, salary paid by oversea co..

2nd: contract worker with local co and work performed oversea, salary paid by local co..
*
The kind of scenario is best to get answer from LHDN.
We can't simply define tax resident situation ourself.

Sometimes it may fall into ambiguous grey area.
Babylong90
post Dec 6 2016, 05:05 PM

New Member
*
Junior Member
19 posts

Joined: Nov 2016
QUOTE(mamamia @ Dec 6 2016, 07:58 AM)
But, if u hire by local co and the co send u to oversea to work for 1 year, is the 1 year income taxable? I thought we need to see where is the co too..

2 different scenario..

1st: contract worker with local co and work performed oversea, salary paid by oversea co..

2nd: contract worker with local co and work performed oversea, salary paid by local co..
*
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 smile.gif
Babylong90
post Dec 6 2016, 05:09 PM

New Member
*
Junior Member
19 posts

Joined: Nov 2016
QUOTE(cherroy @ Dec 6 2016, 02:55 PM)
The kind of scenario is best to get answer from LHDN.
We can't simply define tax resident situation ourself.

Sometimes it may fall into ambiguous grey area.
*
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. smile.gif
Babylong90
post Dec 6 2016, 05:13 PM

New Member
*
Junior Member
19 posts

Joined: Nov 2016
QUOTE(ghostshell @ Dec 6 2016, 11:59 AM)
all sifu,

want to ask if i bought a laptop on year 2014 aug, i fill the computer tax relief on 2015, so if say i bought laptop this year dec 2016, does this consider only 2 years, is count by year or month ?cant fill for tax relief on next year ?

thought want use the 3k tax relief before it change =p

does ms surface pro 4 consider laptop/pc or is tablet category and not entitle for tax relief ?
*
Based on current rules, the computer can only claimed once every 3 years. Since your laptop bought in year 2014, the three years gap would be 2016. You can only claim it in 2017.

However in Budget 2017, this have been amend into lifestyle tax relief and the amount have been reduced to RM 2,500.

Suggestion: you may pass the computer receipt that you bought in 2016 to your family members/spouse in order to reduce their tax payable smile.gif This is a proper tax planning where we can maximize our tax savings through others smile.gif
klthor
post Dec 6 2016, 05:36 PM

Look at all my stars!!
*******
Senior Member
5,469 posts

Joined: Jun 2008
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 smile.gif
*
this one is a bit special case. from what i know it must be job related to your employment back in Malaysia, but not a special contract to send you overseas for 1 year.

from my understanding, example you are a technician with Company A and work for them in malaysia. most of the client for Comapny A is based outside malaysia, so you have to travel here and there to service machine etc etc. that will consider deem derived from malaysia. the word incidental to malaysian employment is important. and as well as business nature.

*** i might be wrong since i have never encounter such cases before. normally ppl who work overseas prefer not to declare malaysian tax.

This post has been edited by klthor: Dec 6 2016, 05:40 PM
cherroy
post Dec 6 2016, 05:55 PM

20k VIP Club
Group Icon
Staff
25,759 posts

Joined: Jan 2003
From: Penang


http://lampiran.hasil.gov.my/pdf/pdfam/PR6_2011.pdf
Example 18 gives close example.
QUOTE
Example 18
Johan, a Malaysian citizen is an employee of the Malaysia External Trade
Development Corporation. He was posted to Chengdu, China to serve at
the representative office as a trade commissioner. His period of stay in
Malaysia/China was as follows:
Period Of Stay In Malaysia/China Number Of Days
1.1.2009 - 31.5.2009 (Malaysia) 151
1.6.2009 - 31.12.2009 (China) 214

1.1.2010 - 31.12.2010 (China) 365
For the years of assessment 2009 and 2010, Johan is deemed a resident
of Malaysia pursuant to subsection 7(1B) of the ITA 1967 because he:
INLAND REVENUE BOARD MALAYSIA
RESIDENCE STATUS
OF INDIVIDUALS

Public Ruling No. 6/2011
Date of Issue: 16 May 2011
Issue: A Page 18 of 19
i. is a citizen of Malaysia;
ii. is employed in the service of a statutory authority in Malaysia;
and
iii. is exercising his employment outside Malaysia as he is required by
his employer
, a statutory body in Malaysia, to work in China.
This post has been edited by cherroy: Dec 6 2016, 05:55 PM
mamamia
post Dec 6 2016, 06:40 PM

Look at all my stars!!
*******
Senior Member
5,928 posts

Joined: Jun 2005
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 smile.gif
*
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. smile.gif
*
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..


Babylong90
post Dec 6 2016, 09:40 PM

New Member
*
Junior Member
19 posts

Joined: Nov 2016
QUOTE(mamamia @ Dec 6 2016, 06:40 PM)
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..
*
It seems that ur friend's case is staff seconded at oversea. Under this circumstances, if the employment letter can be issue by oversea company, then the income shall be exempted in Malaysia as his employment income may taxable in another country.

You may wan to refer to other sifu's opinion as well smile.gif


Babylong90
post Dec 6 2016, 09:44 PM

New Member
*
Junior Member
19 posts

Joined: Nov 2016
QUOTE(klthor @ Dec 6 2016, 05:36 PM)
this one is a bit special case. from what i know it must be job related to your employment back in Malaysia, but not a special contract to send you overseas for 1 year.

from my understanding, example you are a technician with Company A and work for them in malaysia. most of the client for Comapny A is based outside malaysia, so you have to travel here and there to service machine etc etc. that will consider deem derived from malaysia. the word incidental to malaysian employment is important. and as well as business nature.

*** i might be wrong since i have never encounter such cases before. normally ppl who work overseas prefer not to declare malaysian tax.
*
I believe that ur special case refer to the situation that i mentioned above which is staff secondment. The oversea company may issue the employment letter to the employee hence the employment income is deemed to be derived from oversea.

Normally i believe that if ur not gonna tax in Malaysia u might be tax in other country smile.gif there will no be win win situations



499 Pages « < 67 68 69 70 71 > » Top
 

Change to:
| Lo-Fi Version
0.0148sec    0.29    6 queries    GZIP Disabled
Time is now: 29th March 2024 - 12:51 PM