Exemption Orders (“Orders”) for Foreign Sourced Income (“FSI”) Received in Malaysia

Item

Category of Resident Taxpayers

Type of Foreign Income Exempted

(a)

Individuals

All classes of income under Section 4 of the Income Tax Act, 1967 (excluding a source of income from a partnership business in Malaysia)

(b)

• Companies incorporated or registered under the Companies Act 2016

• Limited Liability Partnerships registered under the Limited Liability Partnerships Act 2012

• Individuals who brought into Malaysia foreign sourced dividends in relation to a partnership business in Malaysia

(excluding those carrying on the business of banking, insurance, or sea or air transport)

Dividend income

Item

Conditions

(a)

1. The income has been subjected to tax of a similar character to income tax under the law of the originating jurisdiction.
   
   

(b)

1. The income has been subjected to tax of a similar character to income tax under the law of the originating jurisdiction; and
   
   
2. The highest rate of tax charged by the originating jurisdiction is not less than 15%.