Taxation of Remittances to Malaysia
Dec 12th 2021, 6:43 am
#1
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Posts: 69
Taxation of Remittances to Malaysia
Perhaps some glimmer of hope on the horizon?
"DAP MPs will oppose the Finance Bill to be debated next week unless that there is clarity that the FSIE will not be withdrawn or substantially reviewed to not affect hard-working individuals and companies wanting to bring back their foreign earnings back to the country. Not only will this withdrawal of Foreign Sourced Income Exemption (FSIE) result in capital flight and reductions in capital inflows but it is also unfair for individuals who are compelled to work overseas due to better pay prospects and higher opportunities."
DAP opposes the withdrawal of tax exemption of foreign sourced income (FSIE)
"DAP MPs will oppose the Finance Bill to be debated next week unless that there is clarity that the FSIE will not be withdrawn or substantially reviewed to not affect hard-working individuals and companies wanting to bring back their foreign earnings back to the country. Not only will this withdrawal of Foreign Sourced Income Exemption (FSIE) result in capital flight and reductions in capital inflows but it is also unfair for individuals who are compelled to work overseas due to better pay prospects and higher opportunities."
DAP opposes the withdrawal of tax exemption of foreign sourced income (FSIE)
Dec 22nd 2021, 1:10 am
#5
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Posts: 284
Re: Taxation of Remittances to Malaysia
Some information about the SIRP in this PDF: LHDN Newsletter
Still no definition of what counts as foreign income, as far as I have seen.
In line with the cancellation of tax exemption on income from foreign sources, as announced by the Minister of Finance through Budget 2022, IRBM offers a Special Income Remittance Program (SIRP) to Malaysian residents with income deposited abroad. This program will be implemented based on the set criteria, such as : i) The implementation period of SIRP is from 1 January 2022 to 30 June 2022 (SIRP period); ii) A tax rate of 3% (gross) on income brought in during the period, as proposed under the Finance Bill 2021; iii) No audit review, investigation or penalty on the income brought in during the SIRP period, all income brought in will be accepted in good faith by IRBM; and iv) Income must be brought in / remitted within the SIRP period. IRBM will issue a list of frequently asked questions and guidelines related to the SIRP to the public, which can only be obtained from the IRBM Official Portal starting January 2022
Dec 23rd 2021, 10:16 am
#6
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Location: Penang
Posts: 959
Re: Taxation of Remittances to Malaysia
You may want to subscribe to PwC's newsletter about the tax system in Malaysia, and the upcoming changes:
https://www.pwc.com/my/en/publicatio...y-issue31.html
https://www.pwc.com/my/en/publicatio...y-issue31.html
Dec 30th 2021, 11:54 am
#7
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Joined: Aug 2015
Location: Penang
Posts: 959
Re: Taxation of Remittances to Malaysia
This sounds like good news: https://www.freemalaysiatoday.com/ca...es-until-2026/
Dec 31st 2021, 7:36 am
#10
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Re: Taxation of Remittances to Malaysia
Aug 7th 2022, 8:44 am
#11
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Joined: Aug 2022
Posts: 14
Re: Taxation of Remittances to Malaysia
No hope. The order has been gazetted and all foreign-source income remitted to Malaysia that has not been taxed by the source country will now be taxed by Malaysia effective immediately.
See the other thread here titled "August 2022: Malaysia now taxes foreign-sourced income not taxed at source"
In other words, it is no longer possible to live a tax-free life in Malaysia.
See the other thread here titled "August 2022: Malaysia now taxes foreign-sourced income not taxed at source"
In other words, it is no longer possible to live a tax-free life in Malaysia.
Last edited by MM2Hresident; Aug 7th 2022 at 8:46 am.
