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Sentinel
13-03-2009, 10:00 PM
Lets discuss this topic for general knowledge, something new to share with each other.

Assuming I have worked overseas in a country which is duty-free / no income tax (like Brunei) and I have saved some money, a few millions ringgits for discussion purposes, and now that I am back home in Malaysia, I want to transfer this savings home.

I understand that for income earned aboard and remitted home, the money is subject to income tax (in this case at maximum rate of 27%?).

i) how do we transfer this large sum of money? do we need to inform my local bank in advance? do I need to seek some kind of approval? from who and how to go about it?

ii) when do we inform the IRD? at time of transfer, or before the transfer of the money?

iii) when do we pay the tax? as part of our regular annual income tax returns? or pay tax for this large sum transfer separately?

I want to know because who knows, maybe one day I might accidently have a large sum of money, I would know what to do he he!

USJ27Resident
13-03-2009, 10:14 PM
Best you contact the IRB fellas and ask them directly... and get a black&white once they've finished with you...

the only catch is... once you've contacted them... they'll probably monitor ALL your banking accounts... to see if you've suddenly come into "millions" :p [rupiah and zimbabwean dollar exempted... :D ]

how they monitor: easy - once you have a MyKad/NRIC number - you're numbered... :eek:
[that is how I traced a 'perp' that once borrowed a considerable amount!]

jadewhite
13-03-2009, 10:35 PM
Sentinel,

1. No need to inform bank in advance. Just tt the money to your account. Once the amount arrived, you need to fill a Form R (if I am not mistaken) and the bank will help you to submit to bank Negara.

2. You will be in the lime light lol but honestly I don't have the answer for that.

3. Apparently, its not mentioned in IRB web. I doubt the normal officer would have the answer for you.

But one thing for sure, Malaysia is yet to have a double taxation agrement with Brunei. Further details, click on this link. http://www.hasil.org.my/english/eng_NO2_3.asp#kandungan

CALVINHOBBES
14-03-2009, 11:44 AM
This is from the LHDN website: http://www.hasil.org.my/english/eng_NO2_1_1A.asp

Doesnt it say it is not taxable?

1. For Resident Individual
A Resident individual is assessable on income derived from sources in Malaysia and income received in Malaysia from outside Malaysia. W.e.f. Y/A 2004 income remitted into Malaysia from overseas by a resident individual, a trust body, a cooperative and a Hindu Joint Family be exempted from income tax

cypaq
14-03-2009, 12:35 PM
This is from the LHDN website: http://www.hasil.org.my/english/eng_NO2_1_1A.asp

Doesnt it say it is not taxable?

1. For Resident Individual
A Resident individual is assessable on income derived from sources in Malaysia and income received in Malaysia from outside Malaysia. W.e.f. Y/A 2004 income remitted into Malaysia from overseas by a resident individual, a trust body, a cooperative and a Hindu Joint Family be exempted from income tax

You're right. If a person is not a tax resident in Malaysia (doesn't matter if he is a Malaysian citizen or not) in a year of assessment, income that he earned overseas are not taxable in Malaysia.

Sentinel
14-03-2009, 04:02 PM
You're right. If a person is not a tax resident in Malaysia (doesn't matter if he is a Malaysian citizen or not) in a year of assessment, income that he earned overseas are not taxable in Malaysia.Cypaq, what if I am a tax resident in Malaysia? I am sure the amount remitted into Malaysia will be taxable, right?

Sentinel
14-03-2009, 04:05 PM
This is from the LHDN website: http://www.hasil.org.my/english/eng_NO2_1_1A.asp

Doesnt it say it is not taxable?

1. For Resident Individual
A Resident individual is assessable on income derived from sources in Malaysia and income received in Malaysia from outside Malaysia. W.e.f. Y/A 2004 income remitted into Malaysia from overseas by a resident individual, a trust body, a cooperative and a Hindu Joint Family be exempted from income tax
If I understand your post correctly (highlighted in red above) that wef 2004, any income remitted to Malaysia for a resident individual is exempted from income tax? Thats good news, can you re-confirm this? Where is your source of this piece of info?

Oh, thank you for your info. too!

Sentinel
14-03-2009, 04:09 PM
Sentinel,

1. No need to inform bank in advance. Just tt the money to your account. Once the amount arrived, you need to fill a Form R (if I am not mistaken) and the bank will help you to submit to bank Negara.

2. You will be in the lime light lol but honestly I don't have the answer for that.

3. Apparently, its not mentioned in IRB web. I doubt the normal officer would have the answer for you.

But one thing for sure, Malaysia is yet to have a double taxation agrement with Brunei. Further details, click on this link. http://www.hasil.org.my/english/eng_NO2_3.asp#kandunganHey Jadewhite, you're scaring me with this sentence, can you elaborate "in the limelight", please? Is it subject to investigation? Or the entire bank and Bank Negara people will be asking questions?

cypaq
14-03-2009, 05:00 PM
Cypaq, what if I am a tax resident in Malaysia? I am sure the amount remitted into Malaysia will be taxable, right?

As a Malaysian tax resident, your income is taxable on the year you received your income NOT the year you remit into Malaysia.

Thus if you are resident in Brunei while you earned your billions, you are not subject to Malaysian income tax. Your current residency status is irrelevant.

Sentinel
14-03-2009, 08:44 PM
As a Malaysian tax resident, your income is taxable on the year you received your income NOT the year you remit into Malaysia.

Thus if you are resident in Brunei while you earned your billions, you are not subject to Malaysian income tax. Your current residency status is irrelevant.

Oh oh... some problem there...

jadewhite
15-03-2009, 10:02 PM
Hey Jadewhite, you're scaring me with this sentence, can you elaborate "in the limelight", please? Is it subject to investigation? Or the entire bank and Bank Negara people will be asking questions?

I think it falls back to efficiency. How efficient is the IRD dept? If the same question is pose to the officer, I doubt they have the answer. Sending an e-mail to them will take ages to be replied.

For starter, drop them an email and lets see how soon they respond. I have tested together with more than 5 reminders and till now I have yet to hear from them. Its been than since more than 10 months.

Sentinel
16-03-2009, 02:40 PM
Jadewhite, what you are saying is just TT the money into one's account and fill in some form R with the bank to submit to Bank Negara.

Do nothing with the IRD? Hey, they are the one which will come after you hard later, not Bank Negara.

Are you suggesting to drop them an email and tell them to "come and get it" and if they don't reply.....

kingtiong
18-03-2009, 12:54 PM
personally i did it few time, remit money back from indonesia.

i split my money into few remittance, each remittance is less than RM50k. remitted to different bank accounts. some to my wife bank accounts.

so i do not require to submit any form R. more than RM50k is definitely need to fill up form R. it is complusory requirement by Bank Negara, on the form there are 1 most important item, which is the purpose of remittance. if you fill it wrongly, definitely income tax ppl running behind of you.

but i am not sure whether few million in your case will be done in this way, cause you will lose some money in bank charges.

patrick
18-03-2009, 05:24 PM
Jadewhite, what you are saying is just TT the money into one's account and fill in some form R with the bank to submit to Bank Negara.

Do nothing with the IRD? Hey, they are the one which will come after you hard later, not Bank Negara.

Are you suggesting to drop them an email and tell them to "come and get it" and if they don't reply.....

Other option bruder, email the tax boys. Check out their website at: hasil.gov.my and get their email address. Whenever I write to them, they seem to respond quite fast. Make sure you cc the Chief Officer Hasmah Abdullah at hasmah@hasil.gov.my. Rgds.

Sentinel
18-03-2009, 05:32 PM
Other option bruder, email the tax boys. Check out their website at: hasil.gov.my and get their email address. Whenever I write to them, they seem to respond quite fast. Make sure you cc the Chief Officer Hasmah Abdullah at hasmah@hasil.gov.my. Rgds.Hey Pat, thanks!

Whats the max tax rate... is it 27% for every dollar you remit home?

Someone say, if you have a Singapore bank account and you are not a resident, its better to TT the money into the Singapore account - not tax incidence involved, is that right?

jadewhite
18-03-2009, 10:06 PM
Sentinel, I am checking with my friend on this matter. He used to work in Brunei. But one thing for sure, I recalled he mentioned its tax free. Shall get back to you ya! He's on leave for now

Trevor Keegan
19-03-2009, 05:24 PM
Hi,

Income remitted in from overseas is tax free.

If you have any other tax related questions, please submit them to our Tax forum at TAXSAYA.com (http://www.taxsaya.com/smf)

Regards
Trevor Keegan
Malaysia's FIRST FREE Multi-lingual Tax Software

Sentinel
19-03-2009, 11:46 PM
Hi,

Income remitted in from overseas is tax free.

If you have any other tax related questions, please submit them to our Tax forum at TAXSAYA.com (http://www.taxsaya.com/smf)

Regards
Trevor Keegan
Malaysia's FIRST FREE Multi-lingual Tax SoftwareSo, as an example, I sell a hotel in Brunei for say RM200 million and the Bruneian owner pays me RM6 million as consultancy and sales commision in Brunei and I want to bring this money back, its tax free?

Which section of the Income Tax Act is the relevant section with regard to this case? Thanks in advance.

CoryFan
20-03-2009, 05:02 PM
I think the question is where u live when u earn the money. i.e if u are earning money and living in Brunei, ur earning is tax free.

We used to live in Brunei for many many years and my dad had submitted his income tax every year by his accountant in KL. When we returned, the accountant informed him that he can get money back from the Income Tax as he no need to pay tax while he live and earn money there.

Not 100% sure but u can ask based on this??

jadewhite
21-03-2009, 12:24 AM
Sentinel... Whether the salary are taxable or non-taxable would depends on who sign your pay check. If you are employed in Malaysia and your salary are paid by a Malaysian company than you are liable for tax payment. On the contrary, if you are employed by the Brunei company and your salary derives from the Brunei company, no tax payment are required.

kuma
21-03-2009, 12:59 AM
Sorry...was not following this thread earlier.

I have earned income from overseas for both private 'consultancy assignments' done and paid for there, as well as some small business jv carried out there.

I have remitted these monies to my local account and my tax returns are done by my accountant [my company's one who happens to be friend] on my behalf for years. He has always informed me that such monies need not be declared in my returns as they are NOT taxable.

Only income derived locally is.

kuma
21-03-2009, 01:09 AM
So, as an example, I sell a hotel in Brunei for say RM200 million and the Bruneian owner pays me RM6 million as consultancy and sales commision in Brunei and I want to bring this money back, its tax free?

Which section of the Income Tax Act is the relevant section with regard to this case? Thanks in advance.

Guessing here, but i think i might be right.

To conduct the consultancy in that country, you need to be registered there, right? So you will be taxable there for income earned. If that country happens to be tax free then well and good. Since you have paid tax there, no need to pay here [double taxation], but since its tax free, then no need to pay tax at all.

Now...since we are talking in the Millions here....might be a good idea to speak with a tax consultant.....failing which you can contact the guy who got 400M commision for a sale of some heavy equipment and the deal was conducted in Europe. If there's anybody who should know....bet he would :D

Sentinel
21-03-2009, 01:16 AM
Now...since we are talking in the Millions here....might be a good idea to speak with a tax consultant.....failing which you can contact the guy who got 400M commision for a sale of some heavy equipment and the deal was conducted in Europe. If there's anybody who should know....bet he would :D

Naughty, naughty, naughty.... not worried you will get blown up into smithereens?

kuma
21-03-2009, 01:31 AM
Naughty, naughty, naughty.... not worried you will get blown up into smithereens?

Well then....there will be 1 less taxpayer. :eek:

isarahim
21-03-2009, 08:14 AM
Naughty, naughty, naughty.... not worried you will get blown up into smithereens?
Don't worry you're safe. Only your mistress will. ;-)

Sentinel
21-03-2009, 12:28 PM
Guessing here, but i think i might be right.

To conduct the consultancy in that country, you need to be registered there, right? So you will be taxable there for income earned. If that country happens to be tax free then well and good. Since you have paid tax there, no need to pay here [double taxation], but since its tax free, then no need to pay tax at all.

Now...since we are talking in the Millions here....might be a good idea to speak with a tax consultant.....failing which you can contact the guy who got 400M commision for a sale of some heavy equipment and the deal was conducted in Europe. If there's anybody who should know....bet he would :DKuma, thanks.

Lets assume the following: I am resident of Malaysia, semi-retired, helped an owner of a hotel in Kuala Lumpur sell it to a buyer in Brunei. Commissions of RM12 million was paid to an agent in Brunei who is my partner and my share of the loot is RM6 million. I do not have a work permit / employment pass for Brunei. Brunei is a tax-free country. Let us just say that I want to bring this RM6 million back. I have documents which proved that this RM6 million is from business transaction.

i) is my earning legal since I do not have a work permit for Brunei? Afterall, I am working from Malaysia dealing thru emails, phones and we met in KL....

ii) will the bank allow the TT to come in? All we need to do is just fill up Form R for Bank Negara?

iii) many in this thread said this RM6 million is not taxable BUT not one is sure....

Tax consultants... do they charge a flat consultation fee or a % of the amount to be remitted back?

Sentinel
03-04-2009, 12:24 PM
It seems Malaysia quite a tax haven leh.... LOL!

http://www.themalaysianinsider.com/index.php/malaysia/22155-malaysia-on-oecd-tax-haven-blacklist

Trevor Keegan
04-04-2009, 02:07 PM
Kuma, thanks.

Lets assume the following: I am resident of Malaysia, semi-retired, helped an owner of a hotel in Kuala Lumpur sell it to a buyer in Brunei. Commissions of RM12 million was paid to an agent in Brunei who is my partner and my share of the loot is RM6 million. I do not have a work permit / employment pass for Brunei. Brunei is a tax-free country. Let us just say that I want to bring this RM6 million back. I have documents which proved that this RM6 million is from business transaction.

i) is my earning legal since I do not have a work permit for Brunei? Afterall, I am working from Malaysia dealing thru emails, phones and we met in KL....

ii) will the bank allow the TT to come in? All we need to do is just fill up Form R for Bank Negara?

iii) many in this thread said this RM6 million is not taxable BUT not one is sure....

Tax consultants... do they charge a flat consultation fee or a % of the amount to be remitted back?
Hi,

I am not a Tax Professional....so I cannot advise you on this. But if you do not get any replies from Tax Agents here...you might like to ask your question in our forum (www.taxsaya.com (http://www.taxsaya.com/smf)).

There are a few Tax Professionals there who are monitoring the forum see here (http://www.taxsaya.com/about.html)

Regards
Trevor Keegan
www.taxsaya.com (http://www.taxsaya.com)
Malaysia's First FREE Multilingual Tax Software

kuma
04-04-2009, 07:47 PM
Sorry Sentinel, I didn't see this post earlier....but in any case I would have to agree with Trevor. This is not 6K, but we are talking 6M. Surely eyeballs [and other:D] will be raised....Well, even if 6M is just an assumption,....we are talking 'M's'.....so better to be careful and seek proper advise before you move anything.

But...then again....why do you need to move it here. Labuan seems to be getting popular these days....even amongst the Swiss :D.

Did you think of Singapore? Nearby and you won't lose on exchange from Brunei.....And in case you plan to bring some back across the Causeway.....make sure you don't speak any local dialects :D

Sentinel
04-04-2009, 10:54 PM
Sorry Sentinel, I didn't see this post earlier....but in any case I would have to agree with Trevor. This is not 6K, but we are talking 6M. Surely eyeballs [and other:D] will be raised....Well, even if 6M is just an assumption,....we are talking 'M's'.....so better to be careful and seek proper advise before you move anything.

But...then again....why do you need to move it here. Labuan seems to be getting popular these days....even amongst the Swiss :D.

Did you think of Singapore? Nearby and you won't lose on exchange from Brunei.....And in case you plan to bring some back across the Causeway.....make sure you don't speak any local dialects :D

Hmmmm... moving it across the Brunei Bay on the Sri Anna ferry to Labuan... ha ha ha! And enjoy the famous mutton curry at the only Indian Banana Leaf restaurant... wash down with RM10 for 3 cans Heineken tall-cans... good idea.

But Singapore seems a better bet, no questions asked, no income tax (since non-resident already) and properties dirt cheap...

kuma
05-04-2009, 01:08 AM
But Singapore seems a better bet, no questions asked, no income tax (since non-resident already) and properties dirt cheap...

Yep...i would go with S'pore too. Easily transfer small amounts to your local account. You will probably even get a Black Platinum Credit Card which will auto pay from the monthly earnings on your account, so you needn't have to worry like us peasants who have to scrape just to pay a measly 5% :D

Live the cool life.....travel the world and just zip out your Black Gold whenever someone insists on you paying. :) .......Ahhhhhh....[is there a smiley for envy?]

Need a introducer?

Sentinel
05-04-2009, 03:28 PM
Live the cool life.....travel the world and just zip out your Black Gold whenever someone insists on you paying. :) .......Ahhhhhh....[is there a smiley for envy?]

Need a introducer?
Oh yes my man, when I reach that stage, will call upon you as 'introducer'...

BTW now only POSB accepts Malaysians to open savings account, right?

kuma
06-04-2009, 12:05 AM
Oh yes my man, when I reach that stage, will call upon you as 'introducer'...

BTW now only POSB accepts Malaysians to open savings account, right?

Savings Account?....My,My...Don't 'la talk like that.....When we talk in 'M's'....surely you are not looking at a 'savinnngs' account. That's for the peasants! :D

"only POSB accepts Malaysians"....that's right...BUT, that's a bit outdated...POSB was like when we were kids...the name was change to POSBank early 90's i believe....which was subsequently taken over by DBS in late '90's. Yes they still operate and are the biggest...i think,DBS is also where you can open an account.

Sentinel
07-04-2009, 11:55 PM
We will definitely have a lavazza or piazza cafe together... :D

kuma
08-04-2009, 01:58 AM
We will definitely have a lavazza or piazza cafe together... :D


Cool!....ok, let's stop this 'chat' before this Tread gets banished to Chatterbox. :D

Wonder how 'Take A Break' is doing? :D

[ Just checked it......2 post since it got "buang negri".....QuietStorm tried 'bumping' it on 27/3, Chin Wan prod and seconded it, BUT....Sigh]