The Government will no longer exempt overseas income from income tax! Overseas income declared between 1 January and 30 June 2022 will be taxed at a rate of 3% only.
According to an announcement by the Lembaga Hasil Dalam Negeri9 (LHDN), LHDN will introduce a special income remittance scheme (PKPP). This scheme will last for six months, from 1 January to 30 June 2022.
During this period, a 3% tax will be levied on overseas income remitted to Malaysia. The authorities will not audit, investigate or penalise income remitted to Malaysia during the PKPP period.
After the end of the scheme, LHDN will examine the overseas income deposits of Malaysians in relation to the tax information provided by foreign countries. If a taxpayer is found to have undeclared income from abroad, the authorities will impose a penalty on the taxpayer.
Note! The scheme is limited to income remitted from overseas to Malaysia and does not cover income earned in Malaysia.
