Updated: Jul 20, 2022
Siaran Media Kementerian Kewangan Malaysia:
Individuals to be exempted from tax on the Foreign-Sourced income until Dec 31, 2026
KUALA LUMPUR, 30 Dis – The government has agreed to exempt taxation on foreign source income (FSI) for resident taxpayers to ensure the smooth implementation of the tax initiative, said the Ministry of Finance (MoF).
The tax exemption is effective from Jan 1, 2022, to Dec 31, 2026.
Subject to Inland Revenue Board criteria and guidelines, income tax exemption on dividends will be given to companies or limited liability partnerships while individuals will be tax-exempted for all types of income.
“For individual taxpayers, the government will give exemption to all individuals except those in a business partnership in Malaysia, whereby they are subject to FSI taxation.
“For non-resident taxpayers (individuals, companies, and others), they remain exempted from income tax,” the ministry said.
The MoF also announced that FSI received in the 2022 year of assessment is exempted from tax calculation for the purpose of prosperity tax.
In the tabling of Budget 2022, the government announced that FSI will be taxed from Jan 1, 2022.