Hi,

While going through some job platforms, I stumbled upon some remote job ads that are from foreign based company such as in UK, Germany etc etc. Looking at their 6 figure annual salary after conversion made me want to jump from my current stable job.

What are the things I need to know before applying? How do the taxes work? Are there anyone who currently work remotely with a foreign based company can give their 2 cents.

I'm a web developer with software engineer background.

This post has been edited by Shrayder: Aug 26 2022, 09:42 AM

You still have to pay your taxes. The foreign derive income exemption doesn't apply to you as long as the work is done physically in Malaysia.

You'll need to register your own business, invoice your employers and pay taxes using form B instead of BE, assuming you register for a sole proprietorship.

You'll be a "business owner" and have a tougher time applying for financial products like loans and credit cards. Most credit card company wants 2 years of business registration records before giving you one. Applying for loans will require proof of high amounts of savings and FD.

big mnc's would most likely have some local entity here in malaysia. you will most likely have some outsource HR taking care of your tax etc. Hence you will still be getting your salary like how you would be getting from a local company. Also bare in mind some will be paying you in USD/Euro and some would be in MYR. There's always pro and cons to it.

Just a quick example Euro is now at the level of USD if i am paid in Euro i'll most likely be losing close to 1/5 of my salary after converting to ringgit.

Apply first, get the offer and worry about these later.
in fact, you can even ask about this in your interview.

Most likely they have done this before and know what to do. Either they have entity here or they have done this with multiple other employees/applicants.