Sunday, April 15, 2012

Is Your online Income from Overseas taxable?

The period of filing in Income Tax returns is here again. In recent years, the IRB has been engaging with the public providing good feedback answering taxpayer queries on what can and cannot be claimed.

I came across an item in the Q&A on The Star today which may clear a doubt for Malaysian bloggers who are making money online, i.e., income from overseas. Let me know if I'm understanding it incorrectly.

Q: I have a full-time job but I also do some overseas stock option investment and I was wondering if the gain is taxable. If the gain is taxable, how about the losses?

IRB: With effect from the year of assessment 2004, income received in Malaysia from outside Malaysia is exempted from tax.
Hence, an individual is taxable only on income accruing in or derived from Malaysia.

There is more where the above came from. You can check out answers to taxpayer queries that may apply to you, e.g., purchase of sports equipment, education and medical insurance, etc.

Refer to
- It does not have to be taxing
- Make use of ‘goodies’
- Tax rebate for those who pay zakat (tax calculation included).

6 comments:

  1. So do we pay tax for income derived from blogging like from AdSense?

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  2. That reminds me - I have yet to do my taxes! Procrastinating like nobody's business! LOL!

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  3. Gosh! I have problem reading the word verification! And there are two to read! Grrrr!!!

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  4. Foongpc, you need to fill the income which derived from AdSense as you work from Malaysia and not oversea. The income can be filled under B form where you can deduct off all the expenses incurred.

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  5. Foong, I apologise about the word verification. I too have a problem most times but have found a way around it.

    You can click on the 'refresh' icon, that almost circular pattern to the left of the blank column or whatyoumaycallit..

    Have tried looking everywhere to remove this word verification feature but without success. If anyone has found it, please holler.

    As to your question about paying tax on Adsense, I suppose the answer here is not too clear, huh? Perhaps we need to check it out at the IRB office. Anyone who has done that, please share your experience here.

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  6. Jobless girl, what you are suggesting is not quite in line with what the IRB says:

    IRB: With effect from the year of assessment 2004, income received in Malaysia from outside Malaysia is exempted from tax.
    Hence, an individual is taxable only on income accruing in or derived from Malaysia.


    Are you sure? Thanks for stopping by.

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