Hi all, I'm interested to do a freelance job for a China company. How to legally receive the payment from them? Amount is in thousands of RM. What is the threshold if exceed so that have to declare to LHDN?

Thanks.

If this customer is dealing with you for the first time, if it be me, I would use 3rd party platform to manage the payment/deal, example, upwork or freelancer, under BYOC programme, 0% fees to upwork, please request customer to register with upwork, complete the verification process especially the payment verification. This at least guaranteed you are not being scammed by them. Btw, upwork support payment through local bank.

In addition, you have to provide LHDN TIN and SST ID to upwork. Btw, if you receive the payment directly from that customer, just declare it in e-filing. Feel free to read the LHDN TAX TREATMENT IN RELATION TO INCOME RECEIVED FROM
ABROAD (AMENDMENT) guideline.

All income has to be declared to LHDN, there is no such thing as a "threshold" not to declare.

There is a threshold where effectively you will not have to pay tax on your income though. Currently this is about RM 34k (I think) where once you make all you allowed relief claims, your effective tax rate is 0% on the nett income.

https://www.hasil.gov.my/media/fzofh1gz/202...t-june-2024.pdf

Thanks all. I did some readings and I think I know how to file for the freelancer income