Is foreign income taxable?

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asked on Feb 19, 2006 at 01:50
by   candyoff
edited on Mar 22, 2016 at 09:58
I am now in Malaysia.

I have been in Internet business for almost 2 years. My earning is based on commission. It is paid by a US company to my UK bank as I am using Direct Deposit as my earning payment option.

I have then use Telegraphic Transfer (TT) to transfer my money from the UK to my Maybank account. Form R has been filled when the money is received by Maybank.

The income has not being tax in the UK as I only use the UK bank to receive money.

I asked an accountant few months ago, saying my income is not taxable.

I wish this can be double confirmed. Thank you.
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answered on Feb 19, 2006 at 16:35
by   Unni
For income tax purposes all adults citizens or otherwise who satisfy the test of resident are liable to pay income tax on all income whether earned in Malaysia or abroad. As a starting point you are liable.

However your liability to pay income tax is subject to you satisfying the threshold of taxable income (the minimum oncome test) which includes not only your foreign source income but also all income receipts (technical terms for money) received during a financial year (the tax period).

It is alaways advisable to ask the tax department to provide you with information as to what the minimum income test is, what deductions you may be entitled to and what the tax rate is that is applicable to your income position.

Your accountants advice is patently false and misleading. There is a difference between not earning enough to be taxed, having enough opportunities to reduce your tax burden to zero and not being subject to tax which is what he appears to be saying.
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answered on Feb 21, 2006 at 23:29
by   Ezzboss
You Income Tax is based on your "Tax Return Form" that you report your income annually to the Inland Revenue Department in Malaysia.

You should ensure that you report "Smartly" to avoid "Income Assessment" being assessed Wrongly by the Department.

It does not matter where you got your money from, but HOW you Report or Fill your "Income Tax Assessment Return Form" is Most Important!!

Remember there are only two types of Income to report: Taxable Income and Non-taxable Income. You should know what to do and decide how to report from here on.....
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answered on Feb 21, 2006 at 23:50
by   Candyoff
edited Mar 22, 2016 at 10:00
Thanks for all the reply.

Can someone please introduce an accountant to me so that I can submit my tax return form smartly?

Thank you. This is a great forum!
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answered on Jan 4, 2007 at 00:28
by   jcboy
Hi Candyoff,

I have the same situation like you and had received several different opinion but not really concrete enough. Are you solve your problem ? Can you tell wheather I can written in the Form "B" the said income and declared it as foreign income so that it is not taxable ?

Thanking in advance.
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answered on Jan 4, 2007 at 06:10
by   candyoff
edited Mar 22, 2016 at 10:04
I am currently outstation. Saw your message. Mind to leave your email in XXXX AT XXXX DOT Com format so that we can talk about it. Until today, I am still unsure too.. LOL
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answered on Feb 5, 2007 at 22:50
by   Ah Seng888
edited Mar 22, 2016 at 10:06
Hi Candyoff, you are annoying. Talk rubbish. Someone gave you advice and you did not take it.
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answered on Feb 8, 2007 at 15:55
by   phil_ab
edited Mar 23, 2016 at 07:04
This maybe a bit out of topic but I am posting this question here as I don't know where else I can get an opinion about my problem...

I am a foreigner and have been a tax resident here in Malaysia since 2004 and have been working in the same company until now 2007. I am now planning to leave Malaysia and go back to my home country this February 2007.

I went to the Inland Revenue Board (IRB) and they have informed me that I am not considered a resident for 2007 and that I should pay 28% for the basis year 2007.

I went out of the country in December 17, 2007 to visit my parents in my home country and went back here after 15 days. IRB is saying that I am only allowed 14 days to be out of the country and that is why my 2006 and 2007 are not linked.

Should I really be considered a non-resident even though I have been connected with the same company since 2004. I have always been diligent in filing my tax every year. I just don't see the logic why they would consider me a non-resident if I have been staying here for almost 3 (three) years already.

Can anyone please help to shed light on this? Many Thanks.
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answered on Feb 15, 2007 at 02:01
by   jcboy
edited Mar 23, 2016 at 07:05
Hi candyoff,

Finally I got the answer from Inland Revenue Board (IRB) and you could write me for further clarification.

See Ya!
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answered on Feb 15, 2007 at 03:58
by   nopnopnopn
edited Mar 23, 2016 at 07:07

Try to ask another person from the Inland Revenue Board (IRB) or look for tax related book. I once read a topic which has similar case as yours. The book warned about it. Try to shop for it in MPH.

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answered on Feb 21, 2007 at 04:29
by   Inspector
Hi phil_ab,

Why bother so much about Income Tax problem, after you had been taxed?

To get out of the country or come visit or work again is none of Income Tax Department's business, if you had paid your tax while working there.

You went to the wrong Department. You should go to Immigration Department, if you are talking about "Stay".

Illegal Immigrants from Philippines and Indonesia get in and out of East Malaysia Freely at anytime they like without paying tax.

So think of it as a silly joke if you are social-responsible enough to "Beg" the Inland Revenue Department to Tax You!
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