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).

Income Tax tax-saving tips and Broadband & Travel claims

A reminder that there are only five days left to submit your income tax returns.

You can either file in your forms using the Inland Revenue Board's (IRB) e-filing system or submit them manually. E-filing service counters in all states will remain open from 8am to 6pm this Friday and Saturday.

Tax payments can be made through IRB's online payment service or its appointed banks.

Be aware that failure to submit Income Tax forms is an offence under the Income Tax Act 1967, and defaulters could be fined between RM200 and RM2,000 or jailed up to six months or both.

For further details, visit www.hasil.gov.my or call 1300-88-3010.

If you haven't filed your returns, here are some tax-saving tips, though drawn up in 2008, I believe they are still applicable. Do check them out, they may be able to save you some money.

Also, here is a Q&A from The Star on Broadband and travel claims answers of which are provided by the Inland Revenue Board's Communications Unit for your reference which might help clear some doubts you might be having.


Source: The Star

Income Tax deadline is fast approaching

I believe yesterday, April 15, was Income Tax Day for taxpayers of the US of A. For Malaysian taxpayers, the deadline for submission of Income Tax returns is April 30 for personal taxpayers and June 30 for corporate taxpayers. It's wise to submit early to avoid the queues.

For most of us, the common practice is to just complete all the necessary information on the form (either online or still on paper-forms) and then submit without giving it a thought as to how we can take advantage of certain tax-deductibles or rebates.

Last year I posted these 26 Tax-Saving Moves which include among others the following:

- A relief of RM 5,000 per year for any course of study at the Master’s or doctorate level

- A personal tax deduction to RM 1,000 for purchase of books, journals , magazines and other publications. (Used to RM500 I believe)

- A deduction of RM 300 for each year of assessment for the purchase of sports and exercise equipment for any sports activities

- A tax relief is RM 6,000 a year for premiums paid to an insurance company for life insurance or deferred annuity plans.

- A claim up to RM 5,000 for payments towards your parents’ medical bills.

- A deduction of up to RM 3,000 can be claimed once every three years for the purchase of computers, printers and bundled software. (I believe the amount has been amended to RM 5,000.)


Hope these would be helpful if you have not filed in your return, and for future reference.

26 Tax-Saving Moves

Applicable to Malaysian tax-payers only.

The deadline for submission of Income Tax returns is end of April, i.e., April 30. Most of us would have submitted the forms but for those who have yet to, here are some tax-saving tips you might be able to benefit from.

I have no idea who compiled these but it's stated that these are legal and permitted by Inland Revenue Board (IRB). In fact, if you have a copy of the guideline booklet issued by the IRB, you'd also be able to make your own deductions on permitted and effective ways to save on your taxes.


(Legal and permitted by Inland Revenue Board (IRB))

1) Save for your Child’s Education

Since 2007, any amount that is deposited into a savings account for your child under National Education Savings Scheme ( Skim Simpanan Pendidikan Nasional ) allows you to claim tax deductions.

There is a limit of RM 3,000 for this deduction but spouse who file separate tax returns can each claim this amount.

..Tax Deduction : RM 3,000 per individual.

..For Mr. A : As he falls in the 24% tax bracket, this deduction translates to a tax saving of RM 720 ( RM 3,000@24%).

2) File separate tax returns

...Continue reading 26 Tax-Saving Moves