As announced during the tabling of Budget 2022, foreign sourced income received in Malaysia will be taxed. While some may see this as a quick method to raise revenue collection, Malaysia has in some ways been compelled to do so in order to comply with global tax standards.

KPMG in Malaysia’s Head of Tax, Tai Lai Kok, says that Malaysia appears to be adopting a stance that is similar to Singapore's where foreign sourced income will be taxed only if it is remitted.

"If the income stays overseas, it will not be taxed. What should be highlighted here also is that this will only apply to income. Gains that are not taxable in Malaysia will not be subject to tax," he says.

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