Budget 2022 Foreign-Sourced Income Tax | BAD News for Investors

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Here's everything you need to know about the removal of the foreign-sourced income tax exemption - especially if you are investing in the foreign markets (U.S., Hong Kong, Singapore, U.K., etc.) 🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ www.interactivebrokers.com/mk...
🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ www.interactivebrokers.com/mk...
⬇️Timestamps:
0:00 Introduction
0:47 Summary of the Income Tax
2:40 Double Tax Agreement
5:11 Capital Gains
7:43 My Personal Take (Summary)
🔴Press release statement by LHDN in BM (16 Nov): phl.hasil.gov.my/pdf/pdfam/KM...
🔴PwC's TaXavvy Budget 2022 Edition Part 2: www.pwc.com/my/en/assets/publ...
🔴Deloitte's Tax Expresso Special Edition Part II: www2.deloitte.com/content/dam...
🔴Article by The SUN daily: www.thesundaily.my/business/h...
🔴Article by 3E Accounting Malaysia: www.3ecpa.com.my/resources/ma...
🔴List of DTAs by LHDN: www.hasil.gov.my/bt_goindex.p...
As announced during the tabling of Budget 2022, foreign-sourced income (FSI) received in Malaysia will be taxed. All types of income will be taxable, and this will include dividend income, interest income, rental income, pension income, employment income, and annuities.
The charge-ability of income is governed by Section 3 of the Income Tax Act, 1967 (ITA) which states that “income shall be charged for tax for each year of assessment (“YA”) upon the income of any person accruing in or derived from Malaysia or received in Malaysia from outside Malaysia”. The phrase accruing in or derived from Malaysia connotes the source of income must be in Malaysia. - 3E Accounting Malaysia
As a transition, it is proposed that the FSI received in Malaysia from 1 January 2022 until 30 June 2022 will be taxed at 3% on a gross basis. The FSI received in Malaysia from 1 July 2022 onwards would be subject to tax, based on the prevailing income tax rate.
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✅🎥All the gears that I use to make my RU-vid videos: kit.co/Ziet/youtube-gears
#Budget2022 #Budget2022Malaysia #Tax #incometax #foreignsourcedincometax #malaysiatax #taxinmalaysia #malaysianinvestor #personalfinancemalaysia #financemalaysia #bajet2022 #malaysia #malaysiannews #incometaxmalaysia #incometaxguide #taxmalaysia #cukaipendapatan #cukaimalaysia #KeluargaMalaysia
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Disclaimer: This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.
Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit www.interactivebrokers.com.

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2 июн 2024

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@ZietInvests 2 года назад

📌If your friends and family are also investing in the foreign markets, Share this video with them to remind them about the upcoming change in regulation! In case you are wondering, Interactive Brokers allow you to generate all sorts of statements for your account, and will keep them in their system for a period of 7 years! 🔴Learn more about Interactive Brokers: www.interactivebrokers.com/mkt/?src=zietPY2&url=%2Fen%2Fwhyib%2Foverview.php%3Fnored%3Dt

@rhitheshselvakumaran7422 2 года назад

Hi ziet, will dividend income still be taxed if I choose to just reinvest the dividends instead?

@ZietInvests 2 года назад

@@rhitheshselvakumaran7422 From my understanding, it doesn't really matter what you do with it, when you remit money back to Malaysia, you are "obligated" to declare the dividend income you have gained through the course of that financial year, which can be identified from your brokerage statement. A bit of an oddball, since it is easier said than done when there are funds moving in and out all the time, which is why we would need to wait for more FAQ/clarification from LHDN to clearly pinpoint the actual procedures. That said, I could be wrong also, someone in the comments section down below mentioned that only "excess income" will be taxed, i.e. if you have been taxed 30% by US, then you dont need to pay the tax on the dividends in Malaysia anymore. That seems like a double taxation thing to me, again, I am not sure too, I wish I would know the answer to that!

@EdwardChew 2 года назад

The uncertainty will only makes people not bringing their money back. As usual all the new announcement only make the country goes backward instead of going forward/florish

@ZietInvests 2 года назад

Feels🥲

@waylevral2096 2 года назад

wait for investment droop off list ，moving backwards haha

@ZietInvests 2 года назад

@@waylevral2096 whats a investment droop off list? @@

@JoseRojasYT 2 года назад

Awesome info Ziet, this sure can help many investors become informed.

@ZietInvests 2 года назад

Thank you Jose, i’m glad to share this with the public!

@justinliew2781 2 года назад

Good research and analysis, thanks Ziet!

@ZietInvests 2 года назад

Thank you Justin 🙏🏻🙏🏻

@ryvic9759 2 года назад

Hi Ziet, first time stumbled across your video. Thank you so much for this valuable information.

@ZietInvests 2 года назад

Thank you so much Vic! Hope to see you more often in the comments section!

@ylw9364 2 года назад

Malaysia govt... always incompetent and only see short-term solutions. just sad. :/

@ZietInvests 2 года назад

🥲

@andrewchiewks 2 года назад

Remember few years back , mal gov implement the wht on service rendered on oversea. And then Only applied for few months with the negative impact raised.

@leejpeter3456 2 года назад

Thank you so much for the information and sharing all your knowledge in public. Those who are wise listen and achieve financial literacy. Much appreciate your community service to the people on finances.

@ZietInvests 2 года назад

Thank you Peter, i am trying my best to share these information with the public 🥰 Really appreciate your kind words!

@tylrichard 2 года назад

Hi Ziet, waiting for this topic since the budget 2022 announced. Wonder how to do with the announcement. Hope this particular taxation only last for year 2022 only. ==

@ZietInvests 2 года назад

Your guess is as good as mine for now 🥲 We can only hope for the best with their FAQs/clarifications

@bernardkho676 2 года назад

As informative as usual. Thanks Ziet for sharing!

@ZietInvests 2 года назад

Thank you Bernard!😊

@Anonymous-rl5bg 2 года назад

Jarang ada malaysia youtuber ulas tentang cukai dari luar negara contoh saham us,terima kasih!

@ZietInvests 2 года назад

Kita jaga kita 🙏🏻🙏🏻 terima kasih!🥰🥰

@blahfied 2 года назад

I think you need to consider that the change in law is due to Malaysia being placed on the grey list by the EU for harmful tax practices. The taxation of foreign sourced income is not a new concept and is practiced in other countries, e.g. Singapore. However, countries like Singapore have guidelines / rules on the taxation of foreign source income. Its yet to be seen if Malaysia may adopt similar rules / guidelines.

@ZietInvests 2 года назад

I did read about that, but it's my job to report what's changing and what needs to be taken note of. Yes it could be due to that, but the one facing the short term consequences are the people who are receiving income from the foreign sources yet they don't have clear cut procedure on how to handle it, making it something daunting and concerning. The tax itself is not an issue, we all have been paying tax all along, it's just the way of handling it.

@ongka-kin1059 2 года назад

Hi Ziet, what about yotube monetization? Is it counted as foreign-sourced income too?

@ZietInvests 2 года назад

Yes, if the business is carried out in Malaysia (i.e film in Malaysia), then its considered business income (like what im declaring my youtube revenue for my tax filing)

@Ganesh8433 2 года назад

A very good video. very curious of how this announcement affects us. I agree that in the end it is what the tax officers deem it is.

@ZietInvests 2 года назад

Thank you very much Ganesh, I am glad to be able to share this news with more Malaysians!

@henrychew235 2 года назад

Good video , thanks for the information. Is it time for us to check with interactive brokers on all their documentation and how long it lasts? I sense that is the best way to assist ourselves. The other open question is also what would the tax authorities do on people who invest in etf that reinvests your dividends and not paid out? Does that help us in this situation as then the bulk if you even bring back is the capital gain and not related to dividend.

@ZietInvests 2 года назад

Hi Henry, IBKR usually keeps your statements for a 7 years period, one can easily customize and download on the client portal according to the preferred time range/period. For the latter Re accumulating ETF, I believe it will be viewed as capital gains because the ETF does not issue any dividends on paper, even on their fact sheet, as far as I understand! (from a non-professional personal view)

@henrychew235 2 года назад

@@ZietInvests thanks, need to go do that with interactive brokers. I think all mine are accumulating or dont release dividends so should be easy to explain.Truly messy affair whenever to do with tax.

@ZietInvests 2 года назад

@@henrychew235 It is indeed!

@JohnDoe-km9cx 2 года назад

I would suggest that you invite a tax expert to talk about this issue. Have a Q&A session too with the tax expert.

@ZietInvests 2 года назад

I would love to, but I don't know any that are willing to speak on a public front 😂

@ccs1020 2 года назад

What about withdrawing all dividend (eg last 7 years) from IB before year end, so the account is clean with capital. Next year onwards, just withdraw dividend yearly and declare tax filing annually. In this way, the account is clean with capital and capital gain only. What do you think?

@ZietInvests 2 года назад

Very hard to tell to be honest, seems fair to me, but there's no clear procedures anywhere that I can find that defines this though

@sookyee100 2 года назад

Thanks for the video and sharing your thoughts :)

@ZietInvests 2 года назад

Happy to share them with you, Felicia!😊

@timcarter7834 2 года назад

Hi ziet, I would like to know if I can put both my Singapore bank account (I used to work in Singapore so I have one ) and my Malaysia bank account for me to choose which alternative bank account to put in my dividend received and capital gain received when I gain profit from them ?

@ZietInvests 2 года назад

Hi Tim, that would depend which broker you are using, usually brokers will hold the dividend for you until you cash them out, same goes to capital gains

@johnlow1726 2 года назад

I rather than gst, if come out more pattern to tax you. I also thinking they will not remove this tax after re-annouced gst.

@ZietInvests 2 года назад

Oh well, what can we do other than to speculate for now :x My gut feeling tells me that this will be here to stay and they will just slowly learn to cope with it and release the procedures slowly as time goes by, heck just leave it in gray area so that … you know…tax revenue!

@davidlee2862 2 года назад

Let's go 10k views!!! Also we miss the fork microphone :(

@ZietInvests 2 года назад

Lesgooooooooo 😆 maybe i will bring it back once in a while? 🤣

@realgrilledsushi 2 года назад

Hey man, I’ve signed up for IBKR but I’m stuck at the tax payer part. I don’t pay taxes and not a student since I got a job. What do?

@ZietInvests 2 года назад

You can select skip TIN, should work ☺️

@chingweing5511 2 года назад

Thanks for sharing 🙏

@ZietInvests 2 года назад

You’re most welcome 😄😄

@nazirhussain6767 2 года назад

Hi , can we use Bigpay to transfer money to etoro account ,pls make a video about it, thanks in advance

@ZietInvests 2 года назад

Hi Nazir, I don't use eToro myself, you can try referring to Millennial Finance's channel instead

@nabilhelmy7007 2 года назад

Hey Ziet, what happened to the other historical microphone ;)

@ZietInvests 2 года назад

It’s….ah….retired for now 😂

@MunKeongWong 2 года назад

@@ZietInvests dang.. forked it? XD

@ZietInvests 2 года назад

@@MunKeongWong 😂😂😂 you can call that too hahaha

@SC-zo9mr 2 года назад

What about remitting money back to Malaysia if you're working in another country (i.e. non tax resident)?

@ZietInvests 2 года назад

I guess your income is earned in Country X and taxed in Country X right? As far as i know non-resident won’t be taxable by the Malaysian tax if they are not in Malaysia (at least for 182 days). But do check out PwC/KPMG or LHDN’s website in case I missed anything!

@nicholasleong9454 2 года назад

@@ZietInvests this is something that i don't think they mention clearly which would be concern to those working physically oversea.

@ZietInvests 2 года назад

@@nicholasleong9454 Check if this helps: www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/Malaysia-Residency.pdf

@ivanivan1230 2 года назад

If you are investing in US, and charged with withholding tax of 30%, this tax paid to US as their income, but not Malaysia. Paying tax to Malaysia is the correct way?

@ZietInvests 2 года назад

The 30% will be paid to the US, not Malaysia. When you bring it back Malaysia, if there is double taxation, you will be taxed by Malaysia according to your tax bracket (hopefully there is no double taxation!)

@Albion80s 2 года назад

Will the administrative cost outweigh the tax receipts? Anyway, it will backfire as people will prefer to spend their money overseas.

@ZietInvests 2 года назад

Lots of moving parts and I don’t think it will be resolved/ironed out in the shortest timeframe, meanwhile everything just feels like a mayhem 🤯

@moneyong5724 2 года назад

So if I live in Malaysia for 4 months, live in Singapore for 4 months, live in another country for 4 months every year, I will not need to pay any tax in all these 3 countries? (assuming Singapore and the third country also define >182 days to qualify someone as tax-resident)

@ZietInvests 2 года назад

Wah 😂 I wished I knew the answer to your question :x My hunch says you will still be taxed according to your original tax residency status (i.e. Malaysia if you are a Malaysian). May I suggest you to call LDHN's office to get your questions answered instead: www.hasil.gov.my/bt_goindex.php?bt_kump=2&bt_skum=1&bt_posi=1&bt_unit=2&bt_sequ=1 I would appreciate if you can update us about it!

@farisomar7449 2 года назад

Thanx for good explaination

@ZietInvests 2 года назад

You’re most welcome!

@Anon798_0 2 года назад

bro. trader wise, will it be classed as income or cap gain by tax authority?

@ZietInvests 2 года назад

From what i know, it depends on whether it is your main income, if it is, it should have its own classification (not capital gains) - best if you can call LHDN or any accountant to double check on that

@rtheace 2 года назад

Information that i needed all this time...

@ZietInvests 2 года назад

Glad this was helpful to you 😊

@bleigh2600 2 года назад

Malaysian government is violating its double taxation agreements with many countries e.g. Singapore and Australia. This violates international agreements.

@ZietInvests 2 года назад

I believe they circumvent it by allowing taxpayers to claim the bilateral credit, not the most convenient procedure but I guess we have to make do with what is on the table 🥲

@bleigh2600 2 года назад

@@ZietInvests It is one big mess and I am just waiting for this incompetent government to backflip.

@Phil58Liew 2 года назад

Any comments on pension savings abroad for retirees? A sticky issue for sure to tax a retiree for remitting this back to Malaysia

@ZietInvests 2 года назад

Unfortunately I am not in the position to be table out ideas/ways to circumvent this tax. However, from my conversations with a few people, many seem to prefer storing their cash in an offshore account (i.e. SGD account) and take a loan using that offshore account's financials to purchase any big ticker item. If you are talking about a huge amount of pension savings, I highly highly recommend you to hire a financial advisor and get their advice on how to circumvent this (they don't cost that much actually). They might have better suggestions for this!

@BalrajSingh-gg3qm 2 года назад

So should long term etf investers sell and bring back the money to malaysia before december 31, 2021?. And take a wait and see aproach. Might be easier to use roboadvisors, since their accounting departments will handled all the tax issues

@ZietInvests 2 года назад

It's something that I have been contemplating with (the remitting money part), but generally, it is a NO to me for selling investments unless you really need it or are done with investing, else just leave it overseas to compound and grow for you. At this point i'm on a Wait and See approach, let the finance tabling come out with more details. Roboadvisors doesn't help in this context, just because people settle for you doesn't mean you don't pay tax, you'd probably been taxed (simpler, but the cost is the same), plus robo is not comparable to direct investing

@BalrajSingh-gg3qm 2 года назад

@@ZietInvests good point. i guess i should also not get too excited or worried yet and continue to DCA as best as i can. But may need to DCA less as it may be expensive to take the money back in the next 2 to 3 years.

@tj81090 2 года назад

Will this affect ETF such as QQQ? Means dividend given by QQQ, we need to declare to LHDN?

@ZietInvests 2 года назад

Technically, if you withdraw that "dividend" back to Malaysia, then yes, you have to declare to LHDN. But that would be considered double taxation (US and MY) already, so you can claim bilateral credit, can read more here: phl.hasil.gov.my/pdf/pdfam/PR11_2011.pdf

@Luffy-kh3uh 2 года назад

Hi @Ziet, I have an idea, if i'm not transfering back my dividend pay from US broker accout to my Malaysia bank account, that mean i don't have to pay for the tax right? In this case, if i use the US broker Visa card (Ex: First Trade) to withdraw cash each month in Malaysia ATM machine should be fine, as the money is withdraw directly from US broker account without transfering back to Malaysia.

@ZietInvests 2 года назад

Hi Luffy, If you don't remit it back to Malaysia, then yes, no need to declare that in your income tax filing (from what i understand here). Not sure if you can circumvent it via the Visa Card, I don't have that experience to provide you any input😬

@meh7084 2 года назад

How if you hold/trade foreign stocks on Malaysian bank brokerage? That is considered local income?

@ZietInvests 2 года назад

In my opinion it is the same, the dividend income still originates from the (example) US domiciled companies, so you would be taxed accordingly (as foreign-sourced income, if there is no double taxation agreement that covers this). Local broker are just a means to help you buy the stock, AAPL etc is still traded on the US market, not here in Malaysia

@jjpc5520 2 года назад

Nice video. Thanks for sharing. 2 questions here. Does it mean that if we don't transfer any fund from overseas back to Msia, a tax resident will not need to pay tax in Msia? From July 2021 onwards, the tax % is based on the amount of money that we transfer back or purely on our foreign income? Btw, from what I understand there is more than a way to justify tax resident status. If you meet one of the criteria, then you are considered as tax resident in Malaysia. 1. >182 days or more of the tax year; 2.

@ZietInvests 2 года назад

Hi there, That does seem like the case - if no transfer any "income" back to Msia then no need to pay tax. Though taxable business income should be tax accordingly if business is conducted in Malaysia. You mean July 2022? The tax rate should be the same as the individual/corporate tax rate on LHDN's website (individual up to 30%). And yes there are a few ways to identify yourself as a qualified tax resident in Malaysia, I've discussed about it with someone else in the comments section haha. Note that I could be wrong as I am not a professional tax advisor, best for you to check with a qualified personnel like 3E accounting malaysia or L&Co. !

@oxXiCeXxo 2 года назад

If dividend is reinvested like CSPX does it consider as income or capital gain?

@ZietInvests 2 года назад

Hi Chong Chean, CSPX does not pay dividends as it reinvests them by itself, can refer their ETF factsheet they don’t show any dividend yield at all, only change in their capital value (Share price). So, in my opinion, it should be considered as capital gain only.

@nicholasleong9454 2 года назад

If we are physically located in malaysia (Malaysia Tax Residence), and we remit money back to malaysia let's say from a sg business/income, this might be consider to be taxed right? but what if we are not in Malaysia and we are working in SG, still a Malaysian but that would mean we are no longer Malaysia Tax Residence right? and in this scenario if we remit money back to Malaysia, would this be considered as income to be taxed by malaysia?

@ZietInvests 2 года назад

Hi Nicholas, I wish I had the answer for you, but as far as I know, that money will only be considered taxable if you are a Malaysian tax-resident. Best to give LHDN a call to confirm this just to double-check!

@derrick123 2 года назад

Scenario: if someone have rm100k invested in KO(coca cola) with an average 3% dividend yield per yr. he is getting rm3k, so how much tax should be pay? what is the tax rate we are talking about on the foreign tax income?

@ZietInvests 2 года назад

Hi Derrick, by default there will be a 30% dividend withholding tax on the dividends paid by US domiciled company. So effectively you only receive 70% of that RM 3,000 which is RM 2,100. Another RM 900 would be withheld by your broker. When you bring that RM 2,100 back into Malaysia, according to Budget 2022, you will need to declare it in your income tax filing as an income, which would contribute to the total tax payable in your income tax filing. The rate depends on your personal tax rate (i.e. up to 30% for individuals), but according to the finance tabling, there will be 6 months transitory period up until 30 Jun 2022, so income remitted during that phase should be taxed at 3% - how to fill, what form to fill, where to fill, the authority have not released anything about it yet (as far as I am aware of). This is assuming there is no double taxation avoidance in place, but do check with a qualified tax accountant on this yeah.

@derrick123 2 года назад

@@ZietInvests so in short, we only declare it as our income depends on when we bring bc the money? For example 10 yrs later only i bring bc rm21k, so i will only require to declare on 2031?

@ZietInvests 2 года назад

@@derrick123 I wish I knew the answer to your question too, but it seems like that is the case if I were to guess. This entire thing is so new to the point that we don't even have a reference source to understand the procedures clearly 😂

@berkit1 2 года назад

Thanks Ziet. I understand this tax do not apply to non residents of Malaysia including Malaysians remitting income to Malaysia. So eg if you are working and living in Australia the tax doesn't apply. Is that correct?

@ZietInvests 2 года назад

I believe that is right, as long as you have not stayed in malaysia >180 days, you shouldn't be deemed as Malaysian tax resident!

@berkit1 2 года назад

@@ZietInvests thank you

@ZietInvests 2 года назад

@@berkit1 cheers!

@nesadcruz7840 2 года назад

@@ZietInvests what is the recipient is a tax resident? E.g a Malaysian working overseas send money to his parents who are living in Malaysia. Will the parents be taxed?

@ZietInvests 2 года назад

@@nesadcruz7840 Hmmm I believe it's the same regardless of where the money go, as long as you remit it back in Malaysia. If you earn in SGD and bring it back to Malaysia, then you have to declare that income (as a Malaysian tax resident)

@summery111 2 года назад

If just use Malaysian broker to invest US stocks, there won't be tax issues right? When there's buy n sell, it's directly taxed at your brokerage statement, and we don't have to pay any taxes during income tax filling right? Please correct me.

@ZietInvests 2 года назад

Any broker will be the same - and yes, withholding tax will be automatically withheld by the brokers, no need to do anything from our end since Malaysia dont tax foreign investment gains

@mikewong6607 2 года назад

Hi ziet, do Malaysians need to pay capital gain tax to US for long term or short term investments.

@ZietInvests 2 года назад

Hi Mike, for now no need

@wanextoo 2 года назад

Is money earned from FD rates overseas remitted back to Malaysia considered as "income" as well?

@ZietInvests 2 года назад

Hmmm not very clear about it but technically it should be considered as "income". Might have to check with LHDN to confirm this

@jasondizconaut 2 года назад

May I ask, if I'm working in Australia and are transfering money back in Malaysia every month to my parents bank account for repaying my car loan & for their monthly needs, is it taxable in this case?

@ZietInvests 2 года назад

Hi Jason, I am not qualified to confirm that, but from my understanding that is taxable foreign-sourced income because you are remitting it back to Malaysia. However, I don't think you are now qualified as Malaysian tax resident right since you are working/residing in Australia? So technically you don't need to pay the Malaysian portion tax for that income that you have earned (since you already paid the Australian government). Hope this helps!

@jasondizconaut 2 года назад

@@ZietInvests Thank you

@user-gm6jd2dn5b 2 года назад

If I use rakutan trade to trade stock, would it subject to tax?

@ZietInvests 2 года назад

Hi, tax is not determined by broker ya, its applicable across every broker by the tax law, can refer this video on more info: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-G0ldbVRDyig.html

@wezkerlim 2 года назад

makes me wonder what will happen in these 2 scenarios: 1. use oversea bank account to buy stuffs (services but not tangible product), won't get taxed right? 2. use oversea bank account to buy stuffs & ship into Msia, will get taxed or not? also, will money in oversea bank be taxed by oversea government?

@ZietInvests 2 года назад

Hi there - no need to go through these hassle anymore! Stay tuned for my upcoming upload where I will have something new to share with you all!

@hoho4744 2 года назад

@@ZietInvests yes looking forward to it 👍🏽

@wezkerlim 2 года назад

@@ZietInvests I think I know what you mean, but still I'm worried cuz our land is the king of u turn lol

@susan2364 2 года назад

Hi, Ziet, is it worth to transfer foreign stock (in msia) to IBKR spore?

@ZietInvests 2 года назад

Hi Susan, do you mind elaborate from which broker are you transferring from?

@susan2364 2 года назад

@@ZietInvests HongLeongInvestment to IBKR..

@MrNavinBoss Год назад

Gain from crypto consider capital gain like the Tesla stock ?

@ZietInvests Год назад

Hi Navin, unfortunately i cant answer that as Im not sure how the tax authorities tax crypto here

@brianong3177 2 года назад

Saw a Malay Mail news article today (30 Dec) titled: Govt agrees to exempt tax on foreign source income for resident taxpayers effective from January 1, 2022 to December 31, 2026. What does that mean? Govt make U-turn?

@ZietInvests 2 года назад

Haha! I am editing that video as we speak here, update video tomorrow noon for you guys!

@brianong3177 2 года назад

Alright, looking forward to it! Thanks Ziet :)

@raymond2704 2 года назад

If the investor sells his overseas investments and keeps the money in the overseas bank account or withdraws cash, would this bypass the law?

@ZietInvests 2 года назад

Hi raymond, as long as you don't remit it back to Malaysia, you shouldn't have to declare that income/gains.

@siumingyeoh6583 Год назад

@@ZietInvests hi! Would like to ask, if the dividend/capital gain that we received, we put them in Cimb Sg acc, does msia authorities still manage to tax us since when we open the Cimb Sg acc , we are asked to submit the TIN and also Cimb bank is based in msia too. So does that makes it’s easier fr lhdn to track our bank acc?

@terence3004 2 года назад

Brokerage to sg account? Then buy crypto and transfer to luno or p2p to platform will fix this?

@ZietInvests 2 года назад

Technically won’t work, when you get audited you would still need to present proof of how you earn that much more money compared to what you declared on your tax filing

@akt8985 2 года назад

works if your local income is already enough to qualify for loans.

@ZietInvests 2 года назад

@@akt8985 Hmm interesting, i might need to read up more about crypto

@69destroyer39 2 года назад

hi, i am a seaman/offshore worker working abroad with singapore company. everagely 200days a year away/offshore. will i get a tax return just like country like uk? thanks in advance if you information about this. cheers

@ZietInvests 2 года назад

Hi, I wished I knew the answer to your question but unfortunately that is not something I am familiar with. May I suggest you to call LDHN's office to get your questions answered instead: www.hasil.gov.my/bt_goindex.php?bt_kump=2&bt_skum=1&bt_posi=1&bt_unit=2&bt_sequ=1 Hope this helps!

@69destroyer39 2 года назад

@@ZietInvests its ok, thanks

@sarachoki88 2 года назад

Termasuk wahed ke? Sbb ada us stock

@ZietInvests 2 года назад

X pasti lah, kena tengok camne Wahed handle duit tu

@zulhilmiemohdasri5352 2 года назад

Woww. JARANGG AKU JUNPAA RU-vid ULASS TTG CUKAI . CUKAI MALAYSIA LAGI

@ZietInvests 2 года назад

Hehe 😁 kita jaga kita!

@xxxcool2565 2 года назад

So say i am working in Singapore deriving income in Singapore and remitting money back to malaysia to pay for expenses in malaysia. I shouldn't be liable for these fireign income tax since there is a double taxation exemption between malaysia and Singapore, correct?

@ZietInvests 2 года назад

Technically that should be right from what I understand, but, if i may ask, are you a tax resident of Malaysia or Singapore?

@xxxcool2565 2 года назад

@@ZietInvests i am a tax resident if singapore

@ZietInvests 2 года назад

@@xxxcool2565 In that case there shouldn't be any worry of such tax because it is only applicable to Malaysian tax resident (i.e. citizens or someone that has stayed in Msia over 182 days, and a few other criteria that qualifies you as a tax resident in Msia)

@nesadcruz7840 2 года назад

@@ZietInvests what If you are living in JB and daily commuting? Wont you be a tax resident in both countries?

@ZietInvests 2 года назад

@@nesadcruz7840 but your residential address is still in Malaysia right?

@seekee5856 2 года назад

Is profit from option considered as income?

@ZietInvests 2 года назад

I would love to answer you but there is no black and white defining that clearly 🥲

@we1hu1 2 года назад

Is donation a form of income or capital gain?

@ZietInvests 2 года назад

Hmmm I have no idea about this 😂 best if you can give LHDN a call to confirm this yeah, apologies for that!

@we1hu1 2 года назад

@@ZietInvests I know it works for Najib :D

@hantu4321 2 года назад

What's wrong with reduced international trade as if globalization is the only ideology there is some countries aim for self sufficiency rather than globalization

@ZietInvests 2 года назад

Because Malaysia is a still an export based country, so international trades are crucial for the economy (its one of the pillar of why Malaysia is standing today). No country (especially developing countries) can be self-sustainable without international trades

@hantu4321 2 года назад

@@ZietInvests china is self sustainable doesn't need imports as almost everything is made in china

@vister6757 2 года назад

@@hantu4321 china population & economy is big enough to sustain themselves. Malaysia is not.

@hantu4321 2 года назад

@@vister6757 tell that to india the import king of asia it's government policies not population size. Plus didn't wawasan 2020 estimated 70 million is enough for malaysia to sustain itself all it takes is everyone having 5 or more and it takes 1 generation

@kealee6350 2 года назад

Hello, dun bring back just park at Singapore or offshore private bank. To me this kind of policy is stupid, better invest in USA

@ZietInvests 2 года назад

According to LHDN’s website, the Scope of Taxation: “An individual who is resident in Malaysia is taxable on all income accruing in or derived from Malaysia and on income received from outside Malaysia.” Not sure if this was intentionally left that way, or they just have not updated it, but this seems to be telling us that even if you received the money outside of Malaysia, it will be taxable as well. Hopefully this is just a technical error that they will rectify it in time. That said, if you park everything at offshore bank, that could work in the short term, but what if one wants to buy big ticket items like a car/house?👀

@gokusupersaiya8067 2 года назад

@@ZietInvests dont buy house, rental its more cheap.

@ZietInvests 2 года назад

@@gokusupersaiya8067 I'm renting for now too! haha

@lincolnteh1963 2 года назад

Good more will open foreign account and move money offshore.

@ZietInvests 2 года назад

🥲

@stevenlow8452 2 года назад

Gone case,desperation?

@ZietInvests 2 года назад

🥲🥲

@dysfunctionalisme 2 года назад

this is giving me another reason to consider giving up my citizenship

@ZietInvests 2 года назад

🥲🥲🥲

@ArchDeanXD 2 года назад

For a business it has been around too long already. It’s called withholding tax.

@ZietInvests 2 года назад

That is true, and you are referring to the withholding tax imposed by foreign currency if i understand correctly?

@zonlee2485 2 года назад

thanks

@ZietInvests 2 года назад

You're most welcome!😊

@haqkhan269 2 года назад

Seems totally wrong to tax income that has already been taxed at source in US, Europe etc.

@ZietInvests 2 года назад

I think that is why they allow us to claim bilateral tax credit - not the easiest thing to do for most people, but it is what it is :(

@limchunwei7799 2 года назад

This regulation will lead me to move my most of money from Malaysia to Singapore in long term then I plan just put little bit money in Malaysia to support my daily expense only, this government very short-sighted.

@ZietInvests 2 года назад

🥲🥲 What if they never reverted this regulation, and you need to buy any big-ticket items in 3-5 years time? 🤔

@limchunwei7799 2 года назад

No idea haha😬

@kukujiao67 2 года назад

@@ZietInvests You can buy big ticket items with a foreign bank account. Have done so for a house and 2 cars.

@limchunwei7799 2 года назад

@@kukujiao67 can work?

@kennychai4325 2 года назад

@@kukujiao67 how to do that? Which bank in sg can be done?

@MunKeongWong 2 года назад

The geniuses drawing up & implementing such taxation smells like saboteurs of the country - businesses (foreign invesments) and individuals (brain drain) will have a BIGGER reason now to move out. Syabas

@ZietInvests 2 года назад

Bolehland🥲

@joannayoong9370 2 года назад

@@ZietInvests Not boleh land. Sudah jadi BODOH Land! 🙄

@deathlives2941 2 года назад

does this mean that if my only income comes from paypal in USD, i would have to pay income tax for this even if i don't make more than rm34,000 annually? sorry i'm clueless when it comes to taxes because i just started my freelance work full-time

@ZietInvests 2 года назад

Hi, declaring and paying tax is 2 different thing ya. By law you are required to declare your income during tax filing (and that the RM 34,000 is referring to EMPLOYMENT INCOME after epf deduction, should be exclusive of Other Income). So if my understanding is correct, you still need to declare that "paypal" freelance income on Other Income starting from 1 Jan 2022 onwards (means file in 2023). You can refer to this video for the basics of income tax: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-J10rDZS1d8g.html I also highly recommend you to give LHDN a call to get your doubts cleared, people do that a lot so no worries about that! Better be safe than sorry😊

@dawsanbalakrishnan7752 Год назад

Yes

@ZietInvests Год назад

👀

@liquidh6344 2 года назад

Lots of physical cash though causeway.

@ZietInvests 2 года назад

That's how most Johorians transport their SGD pay? 😛

@liquidh6344 2 года назад

@@ZietInvests of course!

@ZietInvests 2 года назад

@@liquidh6344 thats a first to me haha!

@liquidh6344 2 года назад

Come Singapore. Still exempted for individuals

@ZietInvests 2 года назад

🥲🥲negaraku

@liquidh6344 2 года назад

@@ZietInvests Mari Kita

@ZietInvests 2 года назад

@@liquidh6344 😂

@jemiez9383 Год назад

And the government is asking on why many people use tax haven territories to avoid taxes. Just who the heck want to pay for double taxation amounting to almost 60% of the income😂 stupid decision by the ministers.

@ZietInvests Год назад

😂 IKR HAHAHA!

@eehuntan8947 2 года назад

Invest with a sg brokerage account, after withdrawal to your sg bank account, travel more frequent to sg to withdraw your sgd :p

@ZietInvests 2 года назад

Haha and then stuff cold cash into your bag? XD

@jamesteh829 2 года назад

Righty said

@ZietInvests 2 года назад

Thank you!

@Normanchoong 2 года назад

They just want those who work in Singapore to pay tax, SG tax rate is lower than Malaysia.

@ZietInvests 2 года назад

That could be part of it :x

@vister6757 2 года назад

They just want money

@miraclelment 2 года назад

Eh... where's the golden fork??

@ZietInvests 2 года назад

Its….retired for now 😂🤣

@element1970 2 года назад

Why is this in an instrumental cover playlist lmao

@ZietInvests 2 года назад

Is it? Lololol someone must have accidentally addee 😂😂

@1981qiluqilustephen 2 года назад

That's too bad, considering keep your money to your neighbour Singapore?

@popocucu7749 2 года назад

You need to declare any overseas account.

@ftd7435 2 года назад

@@popocucu7749 Does declaring oversea account end up getting tax?

@ZietInvests 2 года назад

Not making any move yet, still want to see if there are any clarifications/FAQs released in the coming weeks

@ZietInvests 2 года назад

Yup, because you would most likely have to declare it under “Other income”, that would contribute to the total taxable amount

@Fattt88 2 года назад

U r good but can u do a video in mandarin?

@ZietInvests 2 года назад

Hi there, thank you very much for your recommendation, I am seriously considering adding Chinese subtitles in my future videos - what do you think about it? Is it Ok or do you still prefer chinese language?

@tantuanphin 2 года назад

@@ZietInvests yes

@Jay-mw9jg 2 года назад

Wow, you really did detailed research! Is your job related to tax/finance/accounting?

@ZietInvests 2 года назад

Thank you Jay! It's close to investment and business related field, hence the understanding of tax/finance/accounting is part of the job haha! Though I must emphasize that I am in no way near to a qualified tax accountant!

@bl3727 2 года назад

country with first class facilities but with 3rd class management. This is you sow

@ZietInvests 2 года назад

It’s a shame indeed, so much potential yet…sigh

@Ahm1957 2 года назад

OMG. DOUBLE TAX .

@ZietInvests 2 года назад

🥲

@b4bydragon 2 года назад

Welcome to Malaysia 🤭🤫

@ZietInvests 2 года назад

🥲😭

@borneotrades 2 года назад

so, futures trading profit might not be tax at all because of capital gains, right?

@jackblack5962 2 года назад

Trading is considered income

@ZietInvests 2 года назад

It's a gray area for now, might have to wait for their future FAQs/clarifications

@yosiakurniawan9567 2 года назад

How to classify trading and capital gain? How long you hold the stock?

@ZietInvests 2 года назад

@@yosiakurniawan9567 someone in the comment section mentioned that a tax consultant told him: if its trading gains made on a full-time basis (which can be categorised as full-time income) then it would be taxed accordingly, instead of classifying it as capital gains. To what extent that is covered, your guess is as good as mine, I have not come across anywhere that defines this clearly, but happy to read up if anyone can correct me on this one!

@yosiakurniawan9567 2 года назад

@@ZietInvests ah, ok, i see it more to ‘how you justify yourself’, cause theoretically you can be retired already, i trade as hobby, then considered as income? Very gray 😂

@drbilltay 2 года назад

no eyes see....

@ZietInvests 2 года назад

🙈

@muhammadfitrymyyusubmdyusu7265 2 года назад

👌👌👌🌟🌟

@ZietInvests 2 года назад

🥳🥳🥰

@maxforce-hp2ip 2 года назад

Hello Ziet. I am a korean living in Malaysia with mm2h visa. will I be taxed too because I am a resident?

@ZietInvests 2 года назад

(Please ignore this sentence) Hi there! This will only apply for Malaysian resident, so no worries for a non-resident living in Malaysia! (Please ignore this sentence) Correction: You can qualify as a tax resident in Malaysia if you stayed in Malaysia over 182 days, please refer to this source: www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/Malaysia-Residency.pdf

@yosiakurniawan9567 2 года назад

@@ZietInvests is this accurate? According to the article, it is not applicable to non-tax resident, but by definition, you are a tax-resident if you stay in malaysia 182days or more. So regardless you are malaysian or not, as long as you stay in malaysia for 182 days or more, you are subjected to tax, at least this is my understanding

@ytoh6408 2 года назад

@@yosiakurniawan9567 That's correct. Resident is not the same thing as citizen. A non-citizen staying in a country over a number of days in a year is considered a resident.

@ZietInvests 2 года назад

@@yosiakurniawan9567 Yosia & Yto, you are right, I totally overlooked this one. Thank you for the correction. Quick double check and that seems to be the case: www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/Malaysia-Residency.pdf

@ZietInvests 2 года назад

Hi there, as rightfully corrected by the kind people above, hopefully you will take note of this yea!: www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/Malaysia-Residency.pdf Apologies for the oversight!

@timcarter7834 2 года назад

Can Malaysian apply interactive broker to trade in Singapore (by the CIMB way u taught to open bank account there ) and if i do that will ,do i need to pay tax for capital gain or dividend interest to Malaysia or Singapore government

@ZietInvests 2 года назад

Hi Tim, you cant select where to open your IBKR account. When you click into any IBKR website and register for an account, you will be directly placed under IBKR LLC (IBKR US) as a Malaysian. You can invest in any markets you want - SG, US, UK, HK etc., the payable taxes depends on the country's tax. (like 30% dividend withholding tax for dividends paid by US domiciled companies, and 0% capital gains tax for malaysians) When you remit it back to malaysia, that is when your income (could) be audited to segregate your capital gains and income, theoretically, so your payable tax in malaysia depends on your tax code, nothing to do with IBKR at all. For the CIMB SG thing, i believe if you remain the money in CIMB SG, you wont be taxed in malaysia (yet) as far as I read, but will need to read further to really understand it

@timcarter7834 2 года назад

@@ZietInvests if I already had a Singapore bank account (which I worked in Singapore few years back and now I am in Malaysia , is it ok for me to link my Singapore bank account with interactive broker or should I Initially link my Singapore bank account with the interactive broker but not my Malaysia bank account to avoid confusion. In that case I won’t be tax by Malaysia but only tax by Singapore government ( they don’t tax capital gain tax as well?

@arii1987 2 года назад

All forms of income tax is evil. Consumption tax (GST) at 18% on everything is the right way to go.

@ZietInvests 2 года назад

👀

@Jason-ru7xt 2 года назад

Anyone knows if interest earned from yield farming cryptocurrencies is considered as income ?

@ZietInvests 2 года назад

As defined on LHDN's website: "An individual who is resident in Malaysia is taxable on all income accruing in or derived from Malaysia and on income received from outside Malaysia. The scope of taxation of an individual depends on his resident status." For now, your guess is as good as mine, I don't think their website covers in such detail (as to how the tax on crypto etc. will be imposed)

@AFKalldaylong 2 года назад

M’sia Government be like: M40? pay your freaking tax!! T20? It’s held for investment thus no tax for you~

@ZietInvests 2 года назад

🙈🥲🥲Hopefully our worst nightmare won't be come true

@thivianmenon2041 2 года назад

Oh no, not sure how it affects Stashaway or any other roboadvisors on dividends

@ZietInvests 2 года назад

I did think of that before, their assets are usually held by custodian like Saxo Banks overseas, but I don't have the necessary information to understand how their fund flows to the customers (highly unlikely to just withdraw and remit into Malaysia for any small amounts because that wouldn't be efficient). Would they have a RM account catering these withdrawals in Malaysia? 👀

@loneranger8005 2 года назад

Thanks for the update 😇

@ZietInvests 2 года назад

You're most welcome!

@OhCheePeng 2 года назад

How about selling options?

@ZietInvests 2 года назад

It's not specifically mentioned towards any asset class (correct me if im wrong), so for now its a gray area, hence we can only wait for the authority to issue FAQs/clarifications

@Dr-iq1wd 2 года назад

Open Singapore bank acc and send it there. Use Singapore credit card. Won't that work ? Love your videos

@taitianhin806 2 года назад

Good idea. Any benefit to get a SG credit card? Live rate is more competitive than the 3% tax impose in budget?

@ZietInvests 2 года назад

You would have to visit SG physically to be able to get your hands on one (SG credit card) right? Anyways, I think it would work for small ticker items, but the main concern is, what if you want to buy big ticket items like house/car/renovation etc. which requires a huge sum of cash, it would trigger an audit if your spending exceeds your "declared income" if you know what I mean haha!

@Dr-iq1wd 2 года назад

It's not hard. Ask some Johoreans. Most of the "old money" have accounts in Singapore. And those who are working there. Credit card can be apply online and mail towards you. Should be that simple I am sure. As for buying assets, probably use platform that you can sell your stocks and buy up Crypto ? Then spend it in El Savador ? 😉. More countries eventually will adopt crypto as legal tender. Definitely Holdor till then. I wouldn't invest in property in Msia now until they fix the MM2H policy. Way oversupply. Too lil buyers. Overpriced valuation. Salary stagnant. To each his own.

@TroL0iO1er 2 года назад

Isn’t this tax evasion?

@Dr-iq1wd 2 года назад

No idea. When I have that amount of money I will hire auditor and lawyer then I ask. Now poor man. No need think so far. 😂

@wanextoo 2 года назад

What if we remit small amounts over time? Small enough to not raise amy flags with the tax man?

@ZietInvests 2 года назад

Technically this won't work, because if it works then no one would be paying taxes 😂 You will always have the chance of being audited especially when you spend on big ticket items, or during annual tax filing, so when that happens, it is your duty to show proof of your income which traces back to your income sources.

@LetPosts 2 года назад

So mean we don’t need pay capital gain tax ?

@ZietInvests 2 года назад

From what I've understood - that seems to be the case!

@HarvardLim 2 года назад

yet. as for 2022. who knows what might be brought up to the table in budget 2023 and onwards. just have to prepare the umbrella before the rain do we?

@ZietInvests 2 года назад

@@HarvardLim agree! With how the country is developing, it seems like a question of "when" instead 😂

@vister6757 2 года назад

Klse market is already shitty and if they intro capital gain tax then probably not many people will invest anymore. U don't earn much from klse these days volume is small & gain is bad.

@ZietInvests 2 года назад

@@vister6757 101 reasons why I have RM 0 invested in our local market😛

@Dayana-lo4uf 2 года назад

I think the lhdn superiors gonna watch this and read all the comments in here and will know every single of tricks that we talk bout how to avoid tax.hahahha.nothing secret anymore.

@ZietInvests 2 года назад

😂😂😂precisely why I feel...CIMB SG could be endangered 😂