Ya, weird question, as most witholding taxes are not entitled for claim, subjected to respective countries ruling (this involves complicated story already as every country tax rules are different)

To answer above question, should be no, from Malaysia existing taxes regulation.

Foreign withholding tax (WHT) that you suffered in overseas, you should be able to claim as Foreign Tax Credit (FTC) if Malaysia and the respective overseas country have a tax treaty. Generally, FTC is a claim that you can use to set off against your Malaysia's tax payable - to avoid double taxation on the same income. FTC always come with conditions before it can apply.

So go back to the principle of tax treaty, no double taxation on the same dividend income occurred in your case. The domestic law in Malaysia exempt foreign-sourced dividend income remitted into Malaysia from tax, whilst you suffered foreign WHT in overseas (based on domestic tax law in that overseas country).

Therefore, unlikely you are entitled for a FTC given that no double taxation on the same income occurred.

Hope this helps.

Sorry I hope it's ok for me to tumpang along this question tered.

I've living overseas for a while now, and paying tax in the foreign country instead of Malaysia.
However I have some investment in the form of unit trusts in Malaysia.

I'm wondering that when I sell off those UT, will I need to declare them for taxation in Malaysia, or is that covered under withholding tax already

Furthermore, in the country I'm in now I found that there is a 30% tax on gains from shares and UT etc.
And in the tax form they do ask whether I possess any investment overseas etc.

Thanks in advance!

For Malaysia investment side (since the onset of single tier dividend), any income or dividend/distribution that need to have witholding tax, the payor will witheld those amount before distribute to you, so what you get is net off already.
Same with bank interest, if there is need to have witholding tax on the interest, bank will witheld those amount in the first place, before giving to you.

For capital gain on Malaysia investment, Malaysia doesn't practice capital gain tax whether it is resident or non-resident, except RPGT.
So, you need to look at your country tax regulation, whether they have tax on capital gain on foreign investment or not, or any exemption on double tax treaty etc.
If you are A country tax resident, then you follow A tax regulation.

Thanks for your reply!



Yup, I'm trying to follow the tax regulation in the foreign country.

They have a tax on all investments, local and foreign at 30%.

It also states that for example if the foreign investment already taxed 15% on profit by the origin country, then I only need to declare and pay 15% extra tax in my current tax residency.

That's why I'm a bit confused, since as you said, by Malaysian standard I'm getting a net amount of profit already. So do I need to declare and add 15% tax on this net amount in my current tax resident country.

But I guess this is something I will need to check with the local tax agency here.

Thanks.

Accounting was one of my worst subjects in school. So pardon me for my questions.

Say country A has FTC with Misa (I asked the org handling my shares on who got the dividend tax deducted from my shares, the lady replied saying that amount was sent to Msian tax dept), am I right in assuming the following?

AA
I can claim for my deducted share WHT with LHDN?

BB
If I claimed for the WHT here, it should still be non taxable as it is foreign income?

Hope 2 yeses for the above! Ha.

P/S Any time limit on claiming for the WHT? Some of the shares are more than 15 years ago.

Hi Bro, no worries. trying my best to help.

To reiterate, the dividend tax you suffered in overseas is highly unlikely can be claimed as FTC in Malaysia because in the first place, your foreign-sourced dividends remitted into Malaysia were tax-exempt (i.e. not taxable). So in layman, there is no taxable income for you to utilise the FTC.

For the records, the time limit for FTC is 2 years, if i remember correctly.

Hope this helps.

I will just have to tell you my general knowledge of what is double tax agreement is all about.

For example, if a shipping company is based in malaysia. but some of their profit are taxed in singapore, this same income is also taxed in malaysia.

100k, sg tax 15%. 15k
100k, my tax 18%. 18k
total taxed 33k on the same 100k of income.

when double tax agreement kicks in,

100k, sg tax 15% = 15k
100k, my tax 18% = 18k MINUS 15k (due to agreement)
=3k at MY side.

total taxed of of 100k income = 18k only due to the DTA.

for your case, since you are paying tax ONLY in overseas... even if there is DTA, you cannot get back the money. (FYI, you need to confirm this... all DTA are drafted differently.)

Hi, I do not know if I am in the correct thread but I have some tax questions regarding a sole proprietor business.

I have a sole proprietor business. I am a private tutor. I teach students at my place & I also go to some students' houses to teach. I have registered my business in April this year.

My questions :

1. I did not keep the petrol receipts. Only recently I realized that I need those receipts for tax submission. I only started keeping the receipts from October onwards. But I have a book where I list down my petrol expenses. Could I still use this list to do my accounts? Can I fully claim it?

2. Can I fully/partially claim water & electricity bills since I am teaching in my house?

3. Do I really need to maintain a separate bank account for my business? Currently, all my commission is paid into my personal bank account.

Would appreciate it if any experts could help me out on these. Thank you in advance!

1) no receipt then no, as simple as that.
But I do not think petrol expense is entitled for tax deduction for tuition business.

2) I do not think so. (same with 1 above). Unless you have a premise that solely run for tuition that incur electricity bill, then yes, clear cut.
If using home one, it is difficult to prove/show those expenses are for tuition.

Generally, only expenses that are needed to run the business is tax deductible.
You can't simply take in personal expenses.

3) It is preferred to keep it separate, as it is more clear cut and do not mess up.

Thanks for the answers. However, can I know why petrol expense is not entitled for tax deduction since I need to travel to my students' houses to teach them tuition? Isn't it an expense incur to run the business?

Ask back your own question, how would you separate the petrol that used for tuition and personal use?
Use separate petrol tank?

Unless you have a car registered under the business name (eg. registered under the name of ABC tuition centre), that use to fetch student or travel for tuition purposes, then those expenses may be tax deductible under business expenses.

Car that registered under personal name, generally and strictly speaking expenses related to the car are not business tax deductible.

Haha, thanks!

1. You may stand a chance to claim a portion of the petrol expenses incurred. IRB do allow if you are able to come up and justify the apportionment between private and business usage (e.g. 1/3 for private usage).

2. Refer above for the same concept.

3. it's better to do so for clear segregation of income and expenses.

Can interest incurred on Personal Loans or Home refinanced Loan used for Business(Sdn Bhd & PLT; not sole prop or partnership) tagged as Business Expenses?