Malaysia

Foreign-sourced income taxed upon remittance into Malaysia

All foreign-sourced income of Malaysian tax-resident individuals who carry on business through a partnership and which is received in Malaysia is no longer exempted with effect from 1 January 2022. However, the following income received in Malaysia from outside Malaysia from 1 January 2022 to 31 December 2026 may qualify for tax exemption, subject to conditions:

• Foreign-sourced income (all classes of income except for income received from a partnership business in Malaysia).
• Foreign-sourced dividend income received through a partnership business in Malaysia.