The Malaysian 2024 Budget, which is themed “Madani Economy: Empowering the People”, was announced on...
• On 30 December 2021, the Ministry of Finance (“MoF”) issued a media release on the tax treatment policy in respect of foreign sourced income and remission of stamp duty on contract notes relating to the sale of listed shares
• On 31 December 2021, the Royal Malaysian Customs Department (“RMCD”) published a detailed guideline on the Voluntary Disclosure and Amnesty Programme for indirect taxes
• This Issue of Tricor Insights highlights the key points relating to the above updates
Tax on Foreign Sourced Income Received in Malaysia
As announced during the tabling of the 2022 Budget, it was proposed that income tax be charged on Malaysian residents on income derived from sources outside Malaysia and received in Malaysia, in the following manner:
• 3% of gross income remitted from 1 January 2022 to 30 June 2022; and
• Prevailing tax rate applicable on such income remitted from 1 July 2022 onwards.
In response to feedback from various stakeholders (including the professional accounting/tax bodies) and to ensure a seamless implementation of the tax initiative, the MoF had on 30 December 2021, announced that the Government has agreed to grant an exemption from tax on foreign sourced income (“FSI”) of resident taxpayers as follows:
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The Ministry of Finance has announced that the SVDP 2.0 will run from June 6,...