Like a contract role, I work remotely for sg company, do I have to pay income tax?

yes

Hello LHDN

An accountant say no lol

When you got tax penalty, ask the accountant to pay for you

You should show me why I should trust you not the accountant, have you worked remotely before?

Up to you whether u want to trust me or the accountant. I got nothing to lose, but, if u really trust your accountant, why ask here?

you work remotely...
so how do the pay you?
if cash, should be no problem...
if thru bank... wait till it trigger ☻
you can run... but u can not hide from the "lembaga"

You work remotely for Sg company, but salary you received from Sg company or from My company?
If your salary paid from Sg, then no need pay.
Only if your salary is paid in My, then yes, you need to pay.

Faham tak?

it depend on how ur salary been paid

if you salary is paid to your SG account and you pay SG tax. then u no need to pay in MY

if you salary paid directly to you in MY, Yes you need to pay MY tax

there is a guide in LHDN, but i too lazy to dig LHDN website

this!!!

if you work and stay more than 182 (or 190?) days inside Malaysia, then you need to pay M'sia tax, especially if SG company pays you via TT in MYR.

if SG pays you in SGD into SG bank account, then you may need to check your employment contract if you need to pay tax in SG or in MY, but not both. MY & SG has double-tax-agreement. If your SG co says you no need pay tax in SG, then you will need to declare/pay in MY.

I am Malaysian, I work remotely for a US company and I am based in KL. The answer is yes, you need to pay taxes.

you do it yourself? how about epf?

so if you be at other country for 191 days you no need to pay? that can save a lot lol!

Fortunately my employer outsourced all the local taxes & pension matter to a local HR partner here so they sort it out for me

Go do your own self contribution for both employee and employer (11 + 13%) , then submit claim for next month for the employer portion. Unless you are contract based, otherwise do not be stupid and not claim the local benefits. PCB is up to you, else have to pay lump sum duing tax filing.

That is just one of the criteria. If your income is generated in Malaysia, you still need to pay tax.
e.g. If Robert Kuok stays full time in HK, but has a company generating income in Malaysia, with his name as the director and getting income, do you think based on this rule he needs to pay Malaysia tax for that part ?

EPF is not related to tax income issue.

It can be treated you as company in Malaysia provide service (contractual) to an overseas company, and receive contractual payment from the overseas company.

it's good to pump small portion to epf coz it has high percentage of return

One can always opt for self contribution if wish to.

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This post has been edited by wasp81: Jul 26 2019, 07:04 AM

you dont pay also can... prepare get letter from LHDN la... hahahaha if your salary income within certain bracket, have to pay one.. this is rules.. regardless u work from where??

First thing is to determine your tax residency
i.e. where you stay for more than 60/90/180 days. If you got any kind of PR then check double tax treaty.

But you contract work is definitely taxable, just depends on which country's tax you will pay. I'm incline to say you have to pay in Malaysia given the limited info.

Nowadays, it's harder to hide from tax because they have access to your bank account. Unless your employee pays you in bit coin, hard cash or something with no train in the system.

Are you entitled to US 401k and benefits of the local employees too? And do you have to pay US tax as well?

I am in your position, I'm freelancing for a UK company earning $3k/month. They pay me through Transferwise which I then transfer out to my local bank account.

Just talked to LHDN on this issue last week, here is what they told me.

If your income is taxed from the source country, you will not need to pay double the tax in MY (meaning tax free). But if your income is not taxed from the country of origin (ie, you get the full pay/gaji kasar), you will need to declare and pay the income tax in Malaysia IF you are a tax residence residing in Malaysia for more than 180 days.

Pretty sux eh? I though I'd get the zero income tax... 🤷🏻‍♂️

Oh well, since you're getting tax for it, might as well create your own company to receive the overseas income so that you can actually use it for loan approval lol. (Doing it this year for my overseas income)

Question though - if you work freelance, are you expected to pay any taxes? If yes, starting from how much income are you earning?

What freelance only. You receive income from house rent to someone also need to calculate into tax

company is SG entity so thats overseas oncome, not taxable in MY but taxable in SG

You pay tax where there money derived. True.

Non residence is other issue, you pay taxes flat rates.

Hi there, sorry for necro-ing old threads, but I need clarification on this.

If you have to pay both employee+employer portion, does that mean that you're receiving the salary as a sole prop/enterprise?

Also, what do you mean by "submit claim next month for employer portion"? Submit what claim? Claim from who and for what purpose? From LHDN as tax relief? A lot of question marks here.

What kind of borang (B or BE) do you file?

Appreciate your reply!

Disclaimer: It has been some time and rules may have changed now.

I'm hired as permanent employee (not contractor) directly from overseas with a letter I'm paid in MYR equivalent and the company TT into my back account. The company also agreed to follow local laws then, hence I'm entitled to submit and claim back the employer portion of EPF.
I understand in recent years, this is no longer allowed or is illegal.

Submit what claims ? I submitted a lot of claims every month then:
1) Claim back the EPF employer portion I pay. e.g. I self-contribute 1100+1300 = 2400. I claim back 1300 the next month.
2) Claim back the TT forex loses. When it is 5-digits, the forex loses can be tens/hundreds.
3) expenses/meals
4) foreign flight+accomodation
5) local travel/mileage+accomodation
6) benefits.

For what reason ? If I don't do it, I would lose out on the employer portion every month.

I fill up BE at that time as it is not a business.

Thank you for your reply!