Do I Need to Pay Income Tax for Earnings Purely from Internet? (For Malaysian)
About a year ago, when I’m still learning Internet Marketing skills from my guru, suddenly a question just pop into my mind, “Do I need to pay Income Tax for earnings that I get purely from Internet?” Without hasitation, I straight away seek for advise from my guru. The answer that I got is:” You do not need to pay any tax on income that you earn purely from the internet. But you still need to declaire and submit the list of earnings to Lembaga Hasil Dalam Negeri (LHDN). For instance, your paypal statements or other statements that prove the earnings came purely from the internet.”
After I got this answer, I still not very convinced (typical engineer mindset, which need to dig deeper into solutions). So, I went to seek for more informations through forums and other government websites. At last, I had found something interesting that really convinced me on the answer that given by my guru. The answer is found through LHDN website at http://www.hasil.org.my/english/eng_NO2_1_1A.asp
According to the website, it says: –
1. For Resident Individual
A Resident individual is assessable on income derived from sources in Malaysia and income received in Malaysia from outside Malaysia. W.e.f. Y/A 2004 income remitted into Malaysia from overseas by a resident individual, a trust body, a cooperative and a Hindu Joint Family be exempted from income tax
Further down, I also found this statement: -
12. Income Remitted from Outside Malaysia
With effect from the year of assessment 2004, income derived from outside Malaysia and received in Malaysia by resident individual is exempted from tax.
However, it is still advised to seek for professional advise on income tax exemption, to avoid any unnecessary problem that arise later on. I have to mention that, this post is written based on my personal research and only can be used as a reference.
