Chapter 2:Who is subjected to Malaysian income tax?

Well~~
There are two main factors in deciding whether you are subject to Malaysian income tax:
a. Whether you are resident of Malaysia (which depends on duration of your stay in Malaysia, regardless of your nationality or citizenship.)
b. Whether your source of income is from Malaysia or outside Malaysia.

Being a resident means, you have stayed 182 or more days in Malaysia during the assessment year (for individual it means the calander year).

1. If you are a non-resident and without source of income from Malaysia, you are not subject to Malaysian Income Tax. So even if you are a Malaysian working in Singapore with Singpore PR status and are travelling back often to Malaysia for holidays, most likely your stay in Malaysia is less than 182 days. So you are a non resident. Without an income source from Malaysia, you are not subject to Malaysia tax at all.

2. Even if you are a resident of Malaysia, your income from overseas, i.e. employment income, internet business income, dividend income from Singapore stocks, etc. are exempted from Malaysian Income Tax. You may want to declare it in your Tax return, but be careful of your calculation, these overseas incomes are tax exempted. You should not pay tax for your overseas incomes.

3. If you are a non-resident with source of income from Malaysia, you are subject to Malaysia Income Tax over the income source from Malaysia. There is a help book on Self Assessment System for Non resident from Lembaga Hasil Dalam Negeri (Inland Revenue Board) for download.

4. If you are a resident of Malaysia, and you have source of income from Malaysia...think what? Off course you have to pay tax.


How To Pay Income Tax Malaysia ?

Now, you can pay income tax via LHDN’s e-filing website. The entire filing process is done online and all calculations will automatically calculated after you key in the amount. The entire process is simple and easy to use. If you are not able to finish e-filing at one time, you can save your work and come back again to complete the tax filling in anytime. If you are a first timer to use e-filing, I encourage you to read e-filing user guide and FAQ from e-hasil website.

• During the Malaysia 2010 budget, the Malaysia Individual Income Tax Rate for year 2010 is reducing from 27% to 26% for the highest income level. Therefore, Malaysia income tax range is from 0% to 26%. Here I would like to share with you the Individual Income Tax Rate 2010 to know who has to pay income tax Malaysia.Click here for income tax Rates
  

P/s :Income Tax Rates are not the same every year.Please always follow above step for your convenient.

Extra Info:
Here is article that teach you How to register at ehasil Malaysia Income Tax Filing Account,Click Here
Or
Submit LHDN Tax Form via e-Filing ,Click here
How about what happen if not submit income tax? Click here