Singapore Income Will Not Be Taxed – The Statement of Inland Revenue Board of Malaysia
The Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri Malaysia or LHDN) released a statement addressing the confusion over the revenue received from Singapore and the basis of determining resident status for purposes of imposition income tax.
Generally taxable income under the Act Income Tax 1967 (ACP) is the revenue derived from Malaysia as a business or employment source. Therefore, income which is received from Singapore which results from paid employment done in that country is not taxable in Malaysia. This is because the source of income is not a result of payroll carried out in Malaysia.
Individuals Who Live in Malaysia
For individuals who live in Malaysia for more than 183 days, these individuals are considered to have a resident status for tax purposes in Malaysia under the Income Tax Act 1967. However, if this individual does not receive any income arising from Malaysia and only receives payroll income from Singapore, then the individual is still not taxed in Malaysia. Status the resident of an individual in Malaysia shall not cause all income received automatically subject to taxation laws in Malaysia.
Additionally, any source of income from a foreign country brought into Malaysia is also exempted from tax under Paragraph 28, Schedule 6, ACP 1967.
For more information, please visit the nearby LHDNM Office, or contact LHDNM Care Line Outline at 1-800-88-5436 or 603-7713 6666 (Overseas).