TAXATION: Malaysia vs Maldives by Selena Winston https://padlet.com/i19017186/k7miq2oga08l4okk en-us 2022-10-26 01:33:42 UTC 2022-10-30 15:25:49 UTC hello@padlet.com Malaysia i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356436839 2022-10-26 01:44:07 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356436839 COUNTRIES i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356442506 2022-10-26 01:48:30 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356442506 Maldives i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356445227 2022-10-26 01:50:41 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356445227 A. RESIDENT STATUS i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356452382 According to Section 7 of Income Tax Act 1967]]> 2022-10-26 01:56:35 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356452382 Section 7(1)(a) i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356457223
  • In Malaysia, for more than or equal to 182 days
  • Need not be consecutive
  • Single-period/ Multiple periods
  • Temporary absence not permitted 
    • ]]>     2022-10-26 02:00:28 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356457223     Section 7(1)(b) i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356482202 1. Year under Review 
    a) In Malaysia for less than 182 days
    b) "Linked by the Previous Year" or "Linked to Following Year"

    2. Linking Period
    a) More than or equal to 182 consecutive days
    b) Temporary absence is permitted 
    ]]>     2022-10-26 02:19:15 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356482202     Temporary Absence i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356490137 2022-10-26 02:25:07 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356490137 1. Official Issue/ Matter i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356496288 No days limit]]> 2022-10-26 02:29:56 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356496288 2. Ill Health i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356497916 No days limit]]> 2022-10-26 02:31:16 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356497916 3. Social Visit i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356502132 Example: Holiday
    Limit to 14 days]]>     2022-10-26 02:34:31 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356502132     Section 7(1)(c) i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356508106 1. Year of review: In Malaysia for more than or equal to 90 days

    2. 3 out of 4 immediately preceding years:
    a) Resident; or 
    b) In Malaysia for more than or equal to 90 days  

    ]]>     2022-10-26 02:39:06 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356508106     Section 7(1)(d) i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356513539 RESIDENT for: 3 immediately preceding years + 1 immediate following year

    (Need not be physically present in the year of review)]]>     2022-10-26 02:43:04 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356513539     B. TAX RATES i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356515502 2022-10-26 02:44:29 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2356515502 Non-Resident Individual i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357277934 1. Non-resident individuals are subject to a flat rate of 30%.

    2. Will not-taxable if:
    • Employed in Malaysia for less than 60 days
    • Employed on board a Malaysian ship
    • Age 55 years old and receiving pension from Malaysian employment
    • Receiving interest from banks
    • Receiving tax-exempt dividends





    ]]>     2022-10-26 13:30:27 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357277934     Resident Individual i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357352109
  • Taxable at a scaled rate from 0-30%.
  • Foreign-sourced income received by tax-resident individuals is exempted from tax during a transitional period from 1 January 2022 to 31 December 2026. (except for income that is received through a partnership business in Malaysia)
    • ]]>     2022-10-26 14:07:38 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357352109     C. ALLOWABLE EXPENSES i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357433105 2022-10-26 14:48:14 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357433105 Personal Expenses i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357470181 Examples: 
    • Charitable contributions
    • Mortgage interest expenses
    ]]>     2022-10-26 15:08:08 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357470181     Business Expenses i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357511656 Examples:
    • Employment costs to employees such as salary, allowance, EPF, SOCSO 
    • Business insurance 
    • Rental of premises
    • Promotional gift of trading product 
    • Promotional samples 
    • Gift with company logo 
    • Printing and stationery 
    • Travelling allowance to employees
    ]]>     2022-10-26 15:32:08 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357511656     C. ALLOWABLE EXPENSES i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357520834 2022-10-26 15:37:11 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357520834 Personal Expenses i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357522068 Examples: 
    • Charitable contributions
    • Mortgage interest expenses
    • Life insurance premium

    ]]>     2022-10-26 15:37:46 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357522068     Corporate Deductions i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357553157 Examples:
    • Interest
    • Expenses incurred before the commencement of business
    • Welfare expenses
    • Bad debts

    ]]>     2022-10-26 15:55:37 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357553157     A. RESIDENT STATUS i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357578194 2022-10-26 16:09:46 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357578194 Resident i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357603173
    • More than 183 days in a tax year (present in Maldives)
    • Permanent place of living 
    ]]>     2022-10-26 16:23:48 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357603173     Temporary resident i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357606647
    • Allowed through permit issued (Maldives Immigration Authority)
    • Not allowed to be acquired through marriage with a local.

    ]]>     2022-10-26 16:25:55 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357606647     Non-Residents i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357609205 Non-residents have to pay tax on the income they derive from the Maldives.  ]]> 2022-10-26 16:27:33 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357609205 B. TAX RATES i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357611233 2022-10-26 16:28:54 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357611233 Company i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357625561 2022-10-26 16:37:47 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357625561 Partnership and Sole Proprietorship i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357627910
  • Follow the tax rate of an individual
    • ]]>     2022-10-26 16:39:09 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357627910     Individual i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357641919 A scaled rate from 0-15% ]]> 2022-10-26 16:47:43 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357641919 Company and Partnership i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357643788
  • Pay tax at a rate of 15% of the taxable income of that entity which exceeds MVR 500,000 per year. 
  • However, banks have to pay tax at a rate of 25% of their taxable income 
    • ]]>     2022-10-26 16:48:49 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2357643788     D. TAXABLE PERIOD i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2358304005 Pay tax annually (1 January to 31 December)]]> 2022-10-27 02:26:40 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2358304005 D. TAXABLE PERIOD i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2358305148 Pay tax annually (1 January to 31 December)]]> 2022-10-27 02:27:40 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2358305148 E. EXEMPTED INCOME FROM TAX i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2358333355 2022-10-27 02:50:42 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2358333355 Resident i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2358337508
  • Royalties
  • Income from cultural performance
  • Income from musical composition 
    • ]]>     2022-10-27 02:53:56 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2358337508     Non-Resident i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2358340611
  • Pension Income derived from Malaysian employment paid by approved scheme. 
  • Interest Income from financial institution
    • ]]>     2022-10-27 02:56:26 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2358340611     E. EXEMPTED INCOME FROM TAX i19017186 https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2358342911
  • Pension under Maldives Pension Act 
  • Payments received under a life insurance policy
  • Profits distributed by a partnership (Partnership entity and the partners must be residents) 
    • ]]>     2022-10-27 02:58:12 UTC https://padlet.com/i19017186/k7miq2oga08l4okk/wish/2358342911