Working as a freelance in Malaysia

1. From what I understand foreign income IS taxable here, If you're legally a resident.

2. And there isn't a work permit for this.

Hey thanks for your reply!

Oh okay from what I read foreign income is not taxable in Malaysia since 2004 except for certain things like banking, insurance, etc. But that was just what I read on a Google search.

Okay so if there is no work permit for this am I allowed to do this type of work and should I declare this to immigration at my next appointment? Also would doing online work allow me to be eligible to open a Malaysian bank account or even a joint account with my spouse?

Thanks in advance!

Bank account depends on the bank and your pass type.

For tax questions, see https://www.airswift.com/blog/a-guide-t … xpatriates

"If an expatriate lives in Malaysia for 182 days or more in an assessment year, they will be considered a resident for tax purposes. Expatriates deemed residents for tax purposes pay progressive rates (between 0 and 30%, depending on their income). They are also eligible for tax deductions."

And if immigration asks you a question you should be 100% honest.

Oh that's brilliant thank you so much for this information!

Yes of course I am a guest in this country so I would never lie to authorities.
I haven't started working yet it was just a thought since there is a lack of job opportunities right now.
I also wanted to be sure I have all the info first, re tax & permission, so thank you very much for your help!!

Have a great day, Stay safe!

To be honest I would check that with a local tax advisor, ideally one who has expat experience. They are not so expensive here and a small investment now could save you a lot of hassle and cost in future.

A good one will also be able to refer you to specialists on immigration to double check the visa requirements. Hope that's a bit helpful!

Hey,

That's very helpful, do you have one you would recommend?

@mal88 Not exactly. There are exemptions. And it seems that @michaelaclancy wouldn't need to pay taxes from his freelance income. Check the following:

Under the proposal in 2022 Budget, the exemption of foreign source income received in Malaysia by a resident person (other than a resident company carrying on the business of banking, insurance, sea and air transport) provided under Paragraph 28, Schedule 6 of the Income Tax Act 1967 has been removed with effect from 1 January 2022 following the gazette of the Finance Act 2021.

Following the above proposal, the PKPP initially announced by the Inland Revenue Board (IRB) on 16 November 2021 for remittance of foreign source income for the period 1 January 2022 to 30 June 2022 (PKPP period) to be treated as follows:

• Income remitted in the PKPP period is taxed at 3% (gross); and
• Income remitted during the PKPP period will be accepted by IRB in good faith i.e. will not be subject to tax audit/investigation and penalties.

However, the Ministry of Finance (MOF) has announced on 30 December 2021 that the following foreign source income received in Malaysia from 1 January 2022 to 31 December 2026 will be exempted from Malaysian income tax:

• All types of income received by resident individuals except resident individuals carry on business through a partnership; and
• Dividend income received by resident companies and limited liability partnership.

Google for more info.

You need to be careful if your dependant's visa specfically procludes you from working,as it could threaten your spouses Employment pass