Once you have file, you need to declare every year, even though you may not be subjected to any tax or your gross taxable income is below the threshold.

Annual declaration is a must.

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.

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.

http://lampiran.hasil.gov.my/pdf/pdfam/PR6_2011.pdf
Example 18 gives close example.
This post has been edited by cherroy: Dec 6 2016, 05:55 PM

It is about how and where the income is derived.

Employed locally, with local company, send to overseas to perform job, highly it is taxable here. As the income derived from work done to the local company, aka under local company employment. See example 18 posted.

If the person is freelancer, and go overseas and being employed by overseas company, then surely it is considered foreign derived income, unless the freelancer do set up local company or engage with local company before giving service to overseas company, which is another story.

Employment status/letter does have a major influence on top of tax resident status of 182 days.

The 100% confirm on foreign income, is the person go outside him/herself, and being employed by overseas company and not perform job in Malaysia for 182 days, it surely will be deemed as foreign income from Malaysia pov, which is tax exempted. But the income is subjected to the foreign country tax.

Since when small business is exempted from tax?

Just SME with paid up capital less than 2.5 mil, their first 500K profit is taxed at 19% instead of 24%.

You are reside here, and doing survey to make an income that remitted from foreign county, means you derived income here so local tax applied.

Nothing to do with employment in this issue.
It is about where you derived the income.
Quite straight forward.

Similar to online business that individual selling goods to overseas and make an income that received in foreign currency, which is taxable here.

The previous grey area is when the person performing the job at overseas, and not fulfill the tax resident status of 182 days, which is totally different issue.

This is quite common mis-interpretation by common public.
May be we should make a pinned FAQ post so that we don't need to repeat posting the same issue again.

Yup.

Follow your EA.

Name must be same.

If amount is not too big, and income is quite simple for personal, self declaration may be enough, as it is relative simple.

But if income source is variety with complexity in income declaration and claiming relief, engage a tax consultant may save the hassle but at a cost.

The status of "foreign income" is not simply receiving money from foreign company.
You need to be clear about the status of the "foreign income" in the first place.

You perform the work at overseas?
You are assigned the job from here?
etc.

You need specific details of the so called "foreign income" before anyone can comment whether it is indeed a foreign income (that is tax exempted) or not in the fist place.

This is considered income derived in Malaysia, not a foreign income, despite you are paid by foreign company in foreign currencies.

In this situation, then it is a foreign income source, as the income has been taxed at foreign country.

1) No need.

2) As it is a foreign income, so it is tax exempted and he is not a tax resident of Malaysia as well.

3) No, it is not an income for the parent.

But do keep those foreign income source documentation for future reference, as it is the proof to show those are foreign income.

This is history already.

Since 2014, all dividend are on single tier system already, no more imputation system.

Single tier - already taxed at company level, and tax exempted in the hand of receivers.

This kind of question has been asked 12343 times already.

Derived = where you are or where you performed the job to earn the income, not about where you sell to.

If you are in Malaysia and a tax resident Malaysia, disregard where you sell your stuff, or wherever server/online platform based or to whom, it is considered derived in Malaysia, and subjected to Malaysia tax.

The ruling does not apply on your situation.
It only applied on those working abroad aka derived the income at overseas.

You work here and derived income in Malaysia, so you are subjected to Malaysia tax.

Income derived overseas /= money come from overseas

Income derived outside Malaysia means you make the work at overseas, and earn an income.
Just because the money is remitted from overseas, it doesn't mean translate as income derived at overseas.
If it is, then all export company do not to pay tax already, as their proceed money also remitted from overseas.

If you are resident Malaysia, and perform the selling from Malaysia, then your income is deemed derived in Malaysia and the income is subjected to tax.

If transaction is done frequently, it may be deemed as trading, and trading gain is subjected to tax.
Yes, I agreed there is a grey area between capital gain and trading.

The reason I bring out the export company is to highlight that money remitted from overseas means nothing or has no relation to the definition of "tax exempted on income derived outside Malaysia".
So the ruling of tax exemption of income derived outside Malaysia cannot apply if one is doing transaction in Malaysia.

In term of tax perspective, it doesn't care cryptocurrencies or whatever type of virtual coins, it just said income is subjected to tax (unless stated otherwise like tax exempted income eg dividend, bond interest etc).

You make a profit from an activity (in this case crytocurrencies) ----> income.

Whether the income is subjected to tax or not, then next step is to get clarification of type of income, whether it is tax exempted or not.

Since crytocurrencies income is not mentioned as tax exempted source in the tax ruling, then we need to look at whether it is a capital gain or trading income.

If one is making an income through trading of cryptocurrencies, then it is deemed as trading income.
And in tax ruling, trading income is subjected to tax, this is pretty clear.

But if one is buying cryptocurrencies to keep, later on, its value appreciated and make a profit through it then it may be deemed as capital gain, whereby capital gain is not subjected to tax.

Selling collectible card at a profit, especially if done frequently like shop selling ordinary goods (aka trading), actually it is subjected to tax.
There is never a tax ruling saying selling collectible cards, points or whatever at a profit is not taxable.

The grey area is between the trading and capital gain, not about cryptocurrencies or pokemon collectible is not subjected to tax as no tax ruling saying they are tax exempted.