Malaysia

country
no-tax-foreign
Tags: #<Tag:0x00007f2945ed5718> #<Tag:0x00007f2945ed5448>
(Benjamin Lupton) #1

About

Tax

https://en.portal.santandertrade.com/establish-overseas/malaysia/tax-system

Cryptocurrency

Foreign Income

https://qr.ae/TW1a43

https://www.pkf.com/media/1960332/malaysia%20pkf%20tax%20guide%202013.pdf — Doesn’t mention anything about territorial tax, therefore seems unreliable

The salary earned from working abroad would not be taxable unless the income received is in respect of duties incidental to the exercise of employment in Malaysia.45

All earned income is attributable to local sources.

Only income that has its source in Malaysia is taxable in the country, regardless of where you are paid. However, there are some exceptions to this territorial principle. Malaysia has signed numerous Double Taxation Avoidance agreements, so certain nationalities will be exempt from paying personal income tax in Malaysia if their earned income is taxed in their home country. If your income is derived from specific industries, such as air transport or banking, a worldwide basis for taxation is applied instead of the territorial principle.

Official Government Resources

Inland Revenue Board of Malaysia: Income Tax Rates

Inland Revenue Board of Malaysia: Non-Resident Tax Rates

Inland Revenue Board of Malaysia: Tax File Registration

Requirements:
a. A copy of the latest Salary Statement (EA/EC) or latest Salary Slip
b. A copy of Identification card / police i.c. / army i.c. / international passport
c. A copy of marriage certificate (if applicable)

Inland Revenue Board of Malaysia: Certificate of Residence

Requirements:
Passport, original and photocopies; and
List of movement in/out Malaysia for the year of assessment applied.

Inland Revenue Board of Malaysia: Tax Chargeability

An individual who is resident in Malaysia is taxable on all income accruing in or derived from Malaysia and on income received from outside Malaysia. The scope of taxation of an individual depends on his resident status.

However, with effect from the year of assessment 2004, income received in Malaysia from outside Malaysia is exempted from tax. Hence, an individual, either or non-resident, is taxable only on income accruing in or derived from Malaysia.

Malaysia Investment Development Authority: Taxation

Income of any person including a company, accruing in or derived from Malaysia or received in Malaysia from outside Malaysia is subject to income tax.

However, with effect from year of assessment (YA) 2004, income received in Malaysia from sources outside Malaysia by any person other than a resident company carrying on business of banking, insurance, sea or air transport is exempted from income tax

All individuals are liable to tax on income accrued in and derived from Malaysia or received in Malaysia from outside Malaysia. Income remitted to Malaysia by a resident individual is exempted from tax. A non-resident individual will be taxed only on income earned in Malaysia.

The rate of tax depends on the individual’s resident status, which is determined by the duration of his stay in the country as stipulated under Section 7 of the Income Tax Act 1967. Generally, an individual who is in Malaysia for at least 182 days in a calendar year is regarded as a tax resident.

When searching hasil.gov.my to corroborate the above, I did find this document which stated that the non-chargability of tax received in Malaysia from outside Malaysia had been repealed/deleted in 2009. However, their Tax Chargeability link from earlier, does corroborate the above. So I’m left to wonder what “income accruing in Malaysia” means… perhaps if you reside in Malaysia, earn from outside sources, yet accrue your income inside Malaysia, then you will be taxed on it? Need to confirm with them what accruing actually means here. Will give them a call.

1800885436 (LHDN)
+60377136666 (Overseas)

Immigration

Official Visa Options

http://www.imi.gov.my/index.php/en/main-services/visa/visa-requirement-by-country

http://www.imi.gov.my/index.php/en/entry-requirements-into-malaysia.html

http://www.imi.gov.my/index.php/en/syarat-kemasukan-ke-malaysia/prohibited-immigrant.html

http://www.imi.gov.my/index.php/en/main-services/visa/visa-fee-according-to-the-country.html

Australians

90 days visa free. Terms are: Permitted to enter and remain in West Malaysia and Sabah for ninety (90) days on social visit only.

Malaysia Tech Entreprenuer Programme

https://www.mtep.my

  • Offers 1 year visa for new tech entrepreneurs, 5 year visa for existing tech entrepreneurs.
  • Costs ~2500MYR for new entrepreneurs, and ~7500MYR for existing entrepreneurs.
  • Existing tech entrepreneurs who have ver 10mMYR can also become investors.
  • Requires offer from one of the Malaysian Digital Hubs, these are coworking spaces and affiliation networks
  • Takes 4 weeks for approval, after approval takes 2 weeks for issuance.

Malaysia Digital Economy Corporation Sdn. Bhd.
e-Xpats Service Centre
Suite 2.1 East Wing Level , Mercu MQA, Cyber 5,
Jalan Teknokrat 7, 63000 Cyberjaya,
Selangor Darul Ehsan,
Malaysia

Within Malaysia : 1-800-88-8338
International : +603 8315 3000 / +603 8315 3195
Email : techpass@mdec.com.my

Malaysia Digital Hubs

http://malaysiadigitalhub.my

Malaysia Digital Economy Corporation (MDEC) Sdn Bhd
2360 Persiaran APEC
63000 Cyberjaya, Selangor Darul Ehsan

1-800-88-8338 (within Malaysia)
+603 8315 3000 (International)
https://twitter.com/mymdec

Malaysia Digital Economy Corporation

Malaysia Digital Economy Corporation (MDEC) Sdn Bhd
2360 Persiaran APEC
63000 Cyberjaya
Selangor Darul Ehsan

1-800-88-8338 (within Malaysia)
+6 03 8315 3000 (International)
clic@mdec.com.my

Malaysia My Second Home (MM2H) Programme

http://www.mm2h.gov.my/index.php/en/home/programme/about-mm2h-programme

Visa Runs

https://scandasia.com/malaysia-clamp-visa-runs/

Immigration officers have strong reason to believe that these foreigners are involved in vice, including prostitution and drugs.

Effective immediately, those who make three consecutive U-turns into the country will be held for questioning.

“Those who fail to furnish the department with convincing evidence of their intended stay in the country will be denied entry,” he said, adding that bona-fide frequent visitors, had nothing to worry as their credentials would support their travel into the country.

Immigration records showed that most of those who abused their stay were young women from China, believed to be working in the flesh trade. Those from Uzbekistan are a close second.

“Granted, there is no law to limit the number of U-turns, but I am exercising the department’s right to step up checks on those who come into the country this way.

Official Government Resources

Headquarters of the Immigration Department Malaysia (Ministry of Home Affairs):

Level 1-7 (Podium) No 15, Persiaran Perdana, Precint 2
62550 Putrajaya.
T : 03-8000 8000 (1MOCC)
Portal Feedback : webmaster@imi.gov.my
Visa Department: 03 8880 1415
Immigration: 03 8778 5463

If they are unhelpful, request transfer to Malaysia Immigration K.L. International.

From @balupton’s 2018 call with immigration:

Finally find out about the legality of visa runs.
Took several calls to several different departments:
Return within 24 hours. You get will get detained.
Return within 7 days. You will be added to a watch list. You will have to prove your case that you are not working to the immigration officer.
Whether you are allowed in, and for how long, is up to the security officer.
Return after 7 days. All is ok.

Glossary

Airports

Kuala Lumpur

Takes about 20 minutes to transfer between KLIA1 and KLIA2 via the subway, which is the quickest route.

Veganism:

Digital Nomad Tax, Residency, Citizenship
(Benjamin Lupton) #2

Send off the following to their MTEP contact email:

Hi there,

I am an accomplished tech entreprenuer with a career over 15 years and I currently hold Australian citizenship.

website: https://balupton.com / resume: https://www.dropbox.com/sh/qlrxrhyv64cnu63/AABsCBg6wVk6z4X4R5Csmt3Ia?dl=0

I spent considerable time in Malaysia last year, and have been considering relocating there. I recently came across MTEP, and am considering applying. I seek to contribute to the Malaysian ecosystem by sharing my knowledge and expertise to facilitate its growth. To enable such contribution, I first need to be clear what my legal obligations would be, especially with regard to taxation and immigration.

My questions and concerns are as follows:

— Does the MTEP give me not only tax residency status, but also standard residency status in Malaysia? Such that I can say to Australia and other legal entities that I am a legal resident of Malaysa.

— Is the MTEP program suitable for entrepenuers like me, who still earn the majority of their income from foreign contracting work? Despite engaging in significant entreprenual activities (which are in the open-source / free culture space).

— What tax would I have to pay for my foreign contracting work? From my understanding, since 2004, Malaysia has offered an ammendment to their tax code, that makes foreign income tax free. As such, even though I would be located in Malaysia thanks to MTEP, the majority of my income would be tax free free as it is knowledge contract work from USA/European entities.

I am currently based in Sydney, however I am looking to relocate by the end of May.

If this is better to discuss over a call, anytime on https://balupton.com/meet works for me.

Thank you, kindly,

Benjamin Lupton

Got a reply. Was told to contact/refer to http://www.hasil.gov.my

Tried to send the following via the form, but as I don’t have a Malaysian tax number yet, it did not accept my submission.

Regarding Tax Changeability, what does income accruing in refer to?

On the page:
http://www.hasil.gov.my/bt_goindex.php?bt_kump5bt_skum1bt_posi2bt_unit5000bt_sequ2

There is the statement:

However, with effect from the year of assessment 2004, income received in Malaysia from outside Malaysia is exempted from tax. Hence, an individual, either or non-resident, is taxable only on income accruing in or derived from Malaysia.

What does income accruing in refer to there? What does it mean? What would be some examples of it?

For instance, would living in Malaysia, yet receiving foreign income from a foreign company, be taxable?

Thank you, terima kasih,
Benjamin Lupton

I then tried calling HASIL, however after 2 minutes, the automated process kicks in with “We are experiencing large call volume, please call back later.” and ends the call.

So I guess I will need to ask about it when I land, by rocking up to their office. Otherwise, I hope that this quora question is answered instead:

https://qr.ae/TWTy2P