I’m not an accountant, neither am I familiar with the tax structure in Malaysia, the only thing that is troubling me when it comes to paying tax, should I or shouldn’t I pay tax? Clause 12 says money made outside Malaysia are tax exempted.
Tax Exemptions For Individuals
12. Income Remitted from Outside Malaysia
With effect from the year of assessment 2004, income derived from outside Malaysia and received in Malaysia by resident individual is exempted from tax. (Link)
I have conflicting answers from different accountants, and this is killing me. Do you pay tax from money made online?
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{ 9 comments… read them below or add one }
According to local blogger LiewCF.com, he did pay tax but whether he’s asked to do so, I’ve no idea.
I thought bloggers are free from taxes here (Malaysia).
@CLF – I thought it is free as well, because according to one of the articles in lembaga hasil negara, any income derive from overseas is tax free. I’ll need to do some research.
i’m troubled by this same shit too. i went to ask at a LHDN office once and they said ‘no’ (although the person did not seem to understand my question clearly). i saw on a website that says ‘no’ too. but could it be this good? cos im making a shitload of money from overseas. if you get a definitive reply, mind sending me an email?
@jeremy
I am still searching for the answer, I’ll need to double check with an accountant. We’re helping the country to earn foreign exchange, don’t u think the gov would want to encourage us to bring these monies back?
I bought this book on Malaysian income tax written by this local Malaysian professor who specializes in tax and he says no.
http://www.kwaifatt.com/kf/index.html
http://umexpert.um.edu.my/papar_cv.php?id=AAAJxnAAQAAAGEgAAC
http://www.kwaifatt.com/kf/html/current/book1.html
I am just wondering what sort of “money made outside Malaysia are tax exempted”? This is because some of us are selling stuff, blogging, Adsense and so on. Another thing is I am also working for overseas clients, but what about the earning I get from them? Taxable or exempted? If anyone else can enlighten me on this matter, it would be helpful. I tried to ask IRB but they didn’t reply me. Clause 12 seems to be too general.
I think what they meant by ‘Money made outside Malaysia are tax exempted’ is income taxed by another government when you are working overseas as a student or full time. Put it that way, all income are taxable, it is which government you paid to. Unless you’re in Brunei or Dubai.
I’m also searching for the answer, who got the answer, so confuse……
“income derived from outside Malaysia and received in Malaysia by resident individual is exempted from tax”
All income is taxable. If you trade in US stock market, you will be exempted from capital gains tax if you sell your stock. But you still have to pay this capital gain tax in your country of origin.