As is virtually every EM country across the world unfortunately. I don't think EU has much to contribute to this.. other than an excuse for a tax increase.Another reason is that they are running out of money
As is virtually every EM country across the world unfortunately. I don't think EU has much to contribute to this.. other than an excuse for a tax increase.Another reason is that they are running out of money
PwC published an update about this new taxation, based on a press release by the Malaysian tax office.
Details can be found on page #6 of this pdf file: https://www.pwc.com/my/en/assets/pub...vy-30-2021.pdf
However, to me it sounds rather gibberish and I don't fully grasp the meaning and impact.
The PwC document refers to the website of the tax office, but their press announcements are only available in Bahasa Malaysia, which I don't speak.
oh I did study that as it might affect me.
So basically, you have to be a tax resident (183 days?) and you generated income while being a tax resident, those income are taxable. Previously only certain categories where taxable or tax free. This is to combat the increasing number of online business where income are sourced overseas, like doing webpages etc etc
https://www.ey.com/en_my/news/2021/1...-2022-comments
It seems that overseas money will not be taxed if it is not brought to Malaysia. So if you leave it in an overseas bank account say in HK or Singapore, nothing happens.
That's correct. The new tax relates to money entering the country. Until now all money which came into the country from abroad (e.g. foreign pensions being paid into a Malaysian bank account, or remittances from overseas into a Malaysian bank account) were subject to 0% tax.
Actually the criteria to tax someone is (a) they are a tax resident and (b) they generated INCOME-salary,dividends, interest income, (not capital gains) WHILE being a tax resident (c) they remit the aforesaid INCOME to malaysia. So savings pension etc of foreigners remitted to Malaysia will not be taxed because you do not fulfill either (a) or (b). Even if you are (a) and you can proof money remitted is not INCOME, you should be fine. Also your savings or income generated when you were 20 year old/ago it doesn't count.
Changes is because historically, you can live in Malaysia, run a foreign business, remit your salary back and claim it tax free. Also there is a tax bracket, if you generated like $5000 of interest income and remit those to malaysia together with $100000000 savings, you shouldn't be taxable because its income that is taxable. And remind me again why are you guys filing taxes?
https://www.theedgemarkets.com/artic...itted-malaysia
"Who needs to file tax in Malaysia?
An individual who earns an annual employment income of RM25,501 (after EPF deduction) has to register a tax file. With effect year 2010 an individual who earns an annual employment income of RM26,501 (after EPF deduction) has to register a tax file."
Last edited by ycchai; 11-12-2021 at 11:43 AM.
PwC provided today more updates on the proposed tax modifications:
https://www.pwc.com/my/en/assets/pub...-2021-PKPP.pdf
Reading the text I get the impression that this program is mainly targeted at people who earned income in Malaysia but parked it outside Malaysia. Malaysia would like those people to remit those parked sums back into Malaysia. I have the impression that the focus is not really on foreign retirees who live in Malaysia (are resident) and draw a pension from a foreign source.
Today the newspaper (and PwC) ran an article saying that the planned tax on remittance of foreign income will be postponed by five years.
https://www.freemalaysiatoday.com/ca...es-until-2026/