From Jan 1, 2022, the tax exemption on foreign-sourced income received in Malaysia under Paragraph 28, Schedule 6 of the Income Tax Act (ITA) 1967, will be withdrawn, meaning that foreign-sourced income — whether from business or employment or in the form of dividend, royalties, interest or rental — remitted into the country will be subject to Malaysian tax.

And individuals are not spared too. According to KPMG in Malaysia Executive Director of Corporate Tax, Nicholas Crist, those who have investments abroad and have been receiving foreign-sourced dividends, interest income and rental or who have

made gains on the disposal of properties overseas over the years may now find it challenging to segregate the nature of their remittance to Malaysia.

Click here to read his comments in the article on full pdf.