Go Back  British Expats > Living & Moving Abroad > Far East and Asia > Malaysia
Reload this Page >

Work based in Singapore, but living in Malaysia

Work based in Singapore, but living in Malaysia

Old Jul 8th 2022, 4:17 am
  #16  
BE Enthusiast
 
Joined: Jan 2017
Location: Kuching, Sarawak
Posts: 674
RedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond repute
Default Re: Work based in Singapore, but living in Malaysia

"Any source of income derived from outside Malaysia and received in Malaysia is tax exempted".

So where the employer is located is indeed EXTREMELY important. They will generally be paying taxes and reporting income in the UK, not Malaysia. They will be taking deductions and paying for your pension program in the UK. In contrast a Malaysian-based company does the same for their Malaysian national employees working abroad unless they were required to establish a subcontracting subsidiary.

Now as to whether you are working in Malaysia this is clear as mud. Could you apply for an Employment Visa for a company that is not based in Malaysia? I'm very doubtful they would know what to do in this situation. How can that company official sponsor you? They are not registered here. Your work is presumably for foreign entities. The work is submitted outside Malaysia. Your income is banked and taxed in the UK under UK regulations. Suspect that you pay UK tax on that income.

And that is the kicker...if you don't claim Malaysian Tax Residency and pay UK tax on income then you are not supposed to be double-taxed.

https://www.hasil.gov.my/en/individu...ho-is-taxable/

But to add the mud back in "In general, income from employment should be taxable in the country where the services are performed regardless of the place where the contract is signed or where the remuneration is paid. However, from the Year of Assessment 2004, income received in Malaysia from outside Malaysia is tax EXEMPT.

Therefore, any income received by resident or non-resident taxpayers in Malaysia are taxable (Paragraph 28 (1), Schedule 6 of the Income Tax Act 1967)."

Huh? The "therefore is not something that logically follows from the preceding statement. Perhaps it means "any income received by resident or non-resident taxpayers in Malaysia from a Malaysian source...is taxable."

"If you have worked abroad and the work carried out is related to the employment carried out in Malaysia, thus the employment income received will be taxable in Malaysia. Kindly log on to IRBM Official Portal, https://www.hasil.gov.my >> Legislation >> Public Ruling >> No.1/2011 – Taxation of Malaysian Employees Seconded Overseas for further information."

So Malaysians who work abroad re. employment carried out in Malaysia ARE TAXED...that's regardless of their tax-residency elsewhere.

I would say that generally someone working On-Line would do better if they were taxed under Malaysian tax-laws as a tax resident vs. the UK. Tax residents pay a remarkably generous progressive income tax. Non-tax residents (those resident less than 182 days) pay an almost 30% rate on their income. But you'd have to work out an arrangement to pay taxes in Malaysia through some local subsidiary and technically that would become "working in Malaysia".

You might want to make an appointment with HASIL and discuss if you are employed in Malaysia and working in Malaysia.


RedApe is offline  
Old Jul 10th 2022, 4:06 pm
  #17  
BE Enthusiast
 
Joined: Oct 2015
Posts: 464
eCdD has a reputation beyond reputeeCdD has a reputation beyond reputeeCdD has a reputation beyond reputeeCdD has a reputation beyond reputeeCdD has a reputation beyond reputeeCdD has a reputation beyond reputeeCdD has a reputation beyond reputeeCdD has a reputation beyond reputeeCdD has a reputation beyond reputeeCdD has a reputation beyond reputeeCdD has a reputation beyond repute
Default Re: Work based in Singapore, but living in Malaysia

Originally Posted by SushiFan
It is interesting to read that OP only focuses on an MM2H visa, and not investigates a spouse visa. Has this avenue already been crossed out?
No. And it would be absolutely crazy to go for MM2H if you have the chance for a spouse visa.
eCdD is offline  
Old Jul 10th 2022, 11:31 pm
  #18  
BE Enthusiast
 
Joined: Jan 2017
Location: Kuching, Sarawak
Posts: 674
RedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond repute
Default Re: Work based in Singapore, but living in Malaysia

If you are trying to evade taxes entirely I suspect that you will find yourself facing major fines and a large back tax payment, and perhaps jail time. You will have to pay taxes somewhere. This means convincing all of the possible tax assessment entities that you ARE paying taxes in a particular domicile. That is generally done by claiming tax residency.

Now the other issue is more complex...are you working in Malaysia or the UK (or Singapore). Generally is you are working IN a country you are receiving a salary from a company licensed in that country...not simply having a salary for a foreign country remitted into your residential country. I've never personally known anyone doing on-line work paying taxes in Malaysia. They do not generally have Malaysian clients though. If you were doing work like IT consulting for Malaysian companies then it might complicate things. However, one should probably check with a Malaysian tax and employment lawyer as to what you should do. MM2H does not allow one to work IN Malaysia. However a spousal visa does allow one to work.
RedApe is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.