Malaysian working in Singapore and personal income tax

9033 Views  ⚫  Asked 17 Years Ago
asked on Apr 16, 2001 at 19:06
by   mandy
edited on Mar 30, 2016 at 02:20
I hope someone will answer to my question as soon as possible.

I am now working in Singapore (for few years). I am 27 years old, female. I resident in Malaysia. I pay tax to Singapore, I wonder if I need to submit my annual income report in Malaysia (Note: I have checked with Jabatan Hasil Dalam Negari (JHDN) that I haven't yet registered even though I have been working in Malaysia for few months for each 2 company.). Many friends of mine don't submit income report since they worked in Singapore. Many of them thought we don't need to pay tax in Malaysia since we have paid tax in Singapore. 

Refer to the message posted about who work in China, I am bound to submit income tax report, right? But if Malaysia has effective Double Taxation Agreement with Singapore. And what's the exchange rate will be used?

What is the effect if I start submitting income report (or register) next year, that means I submit report for year 2001? Or should I start submitting income report for year 2000 in this year (it's really a big amount for me if I convert my income into Ringgit. It's about RM55,000 ~ RM58,000)? Will I be chased for last few year's taxes? Or usually what's the reason I will be chased? And with what manner?

0 had this question
Me Too
0 favorites
[ share ]
2 Answers

answered on Apr 17, 2001 at 18:00
by   Lee M L
edited Mar 30, 2016 at 02:24
Any local citizen with gains or profit from employment overseas or local must submit their return to the JHDN. Tax may be chargeable under the Income Tax Act.

Section 112 of the Income Tax Act states that any person who makes default in furnishing a return or in giving a notice shall, if he does so without reasonable excuse, be guilty of an offence and shall, on conviction, be liable to a fine of not less than RM200 and not more than RM2000 or to imprisonment for a term not exceeding six months or to both.

Section 106 further states that tax due and payable may be recovered by the Government by civil proceedings as a debt due to the Government and in any proceedings under this section the court shall not  entertain any plea that the amount of tax sought to be recovered is excessive, incorrectly assessed, under appeal or incorrectly increased.

Section 114 states that any person who willfully and with intent to evade or assist any other person to evade tax which includes omits from a return made under this Act any income which should be included, shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than RM1000 and not more than RM20000 or to imprisonment for a term not exceeding three years or to both, and shall pay a special penalty of treble the  amount of tax which has been undercharged in consequence of the offence or which would have been undercharged if the offence had not been detected.
Any claim for Double taxation relief - bilateral credit for a year of assessment shall be made in writing to the Director General not more than two years after the end of that year and, where the claimant is aggrieved by the Director General's decision on the claim, the following shall apply:

The applicant may within six months after being informed of the decision request the Director General in writing to send the application forward to the Special Commissioners.
You are advised to contact the Director General in writing for confirmation on your situation. Keep copies of all correspondence.
0 found this helpful

answered on Jun 8, 2001 at 15:16
by   Jenny Lee
In order to submit your Income report, you only need to submit the form with your particulars filled. You should ignore the section where calculation is required. Submit together with the notice of assessment (Singapore) or other evidence showing the tax amount you have paid to Singapore Govt.

The JHDN will make the calculation and revert back to you on the amount of tax you have to pay. Where the tax amount you've paid to Singapore is more than the amount you should pay to Malaysia, you are exempted from paying tax to Malaysia. Else you pay for the difference.

Whether you will be chase by JHDN for the last few years income - it depends. Where they are not satisfied with the information or suspect that you have not submit the assessment for the pass years, JHDN has the power to query and ask you questions relating to your pass years employment.

You may on conviction be liable to pay fines.
0 found this helpful

Your Answer

By posting your answer, you agree to the privacy policy, cookie policy and terms of service.