Malaysia: Special foreign-sourced income program ends

Taxable foreign-sourced income remitted during the first half of year 2022 is still subject to tax at a rate of 3% of the gross amount.

Taxable foreign-sourced income remitted during the first half of year 2022 is still subjec

A special program for remittances of foreign-sourced income ended 11 March 2022.

The Malaysian Inland Revenue Board introduced the program in November 2021 with respect to remittances of foreign-sourced income into Malaysia, effective 1 January 2022. Read TaxNewsFlash

Originally, the program was effective through June 2022, but the tax authority announced the program’s early termination effective 11 March 2022.  Nevertheless, taxable foreign-sourced income remitted during the first half of year 2022 is still subject to tax at a rate of 3% of the gross amount, and is required to be reported in the tax return for the relevant year of assessment.

Read a March 2022 report prepared by the KPMG member firm in Malaysia

 

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