For those of you who have the privilege of working from home here in Malaysia but you are earning an income solely from Singapore, we have good news for you!
The Inland Revenue Board of Malaysia (IRB) has confirmed that income directly received from Singapore will not be taxed
According to a Bernama
report, as long as your employment is solely exercised in Singapore, you will not be liable to income tax.
Some people may be confused about earning an income in Malaysia as a resident in relations to tax.
Yes, it is true that all individuals residing in Malaysia for more than 183 days is considered a resident for tax purposes under the Income Tax Act 1967 (ITA 1967).
But if you don't earn any income from Malaysia and only earn in SGD directly from Singapore, lucky you!
The IRB clarified that the resident status
of an individual in Malaysia does not automatically subject them to Malaysian tax laws
Besides that, any income remitted to Malaysia from overseas is also exempt under Paragraph 28, Schedule 6 of the ITA 1967.
We hope this clears things up because 'tis the season to file your income tax now so everyone should be talking about this.
If you need a refresher on how to do your e-filing, here's a quick guide