fbpx

Bernama Press release on foreign sourced income

FSI: Original Press Release by MOF Via Bernama

There is much confusion created by the media and some tax firms. Here’s the original text from which the news and press extracted and made their press reporting. We have highlighted the specific areas to zoom in.

Original text as extracted from MOF’s website.

KUALA LUMPUR, 30 Dis – The government has agreed to exempt taxation on foreign source income (FSI) for resident taxpayers to ensure the smooth implementation of the tax initiative, said the Ministry of Finance (MoF).

The tax exemption is effective from Jan 1, 2022 to Dec 31, 2026.

Subject to Inland Revenue Board criteria and guidelines, income tax exemption on dividends will be given to companies or limited liability partnerships while individuals will be tax-exempted for all types of income.

“For individual taxpayers, the government will give exemption to all individuals except those in a business partnership in Malaysia, whereby they are subject to FSI taxation.

“For non-resident taxpayers (individuals, companies, and others), they remain exempted from income tax,” the ministry said.

The MoF also announced that FSI received in the 2022 year of assessment is exempted from tax calculation for the purpose of prosperity tax.

In the tabling of Budget 2022, the government had announced that FSI will be taxed from Jan 1, 2022.

Meanwhile, to ensure that Bursa Malaysia remains dynamic, the MoF said the government will impose a stamp duty of 0.15 percent on share contract notes.

The maximum stamp duty on each note is limited to RM1,000 and any amount over that limit will be remitted.

“The remittance is applicable for all contract notes from Jan 1, 2022 to Dec 31, 2026 for all stocks listed on Bursa Malaysia,” it said.

In the Budget 2022 announcement, the government had proposed to raise stamp duty on share contract notes from 0.1 percent to 0.15 percent, which is equivalent to RM1.50 for every RM1,000.

The plan to impose a stamp duty of RM200 for every contract note is thus abolished.

Reference : MOF via Bernama

————————

There is a lot of confusion lately regarded FSI. To separate the truth from fiction, read this article: “You See FSI Not a Real U-Turn“.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp
Share on email
Email

Related Posts

How to make Mom into Supermom

Life is a constant balancing act. Especially true for the working moms. I can vouch for this; I am a mother of two little princesses. Trying to juggle our career, duties as a wife, plus relations with inlaws, and the responsibilities to our children can be challenging and overwhelming.  Here’s a compilation of the tips

How to Survive an IRB Audit

As the saying goes, it’s best to hope for the best but be prepared for the worst. Let’s look at a few things which will trigger and audit, so you can be well-prepared if you’re chosen for an audit.

Happy labour day 2022

HAPPY LABOUR DAY Yippy…​ It is long holiday! Labour Day 1 May 2022 Hari Raya 3 – 4 May 2022 School Holiday 2 – 5 May or 3 – 6 May This past 2 months has been filled with  Ukraine War and Basikal Lajak It is sad to see and hear what’s happening. The skyrocketing

Scroll to Top