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Termination of Special Program on Remittance of Income kept Overseas

On 11 March 2022, IRB has released a media statement that Special Income Remittance Program “PKPP” has been terminated. Previously PKPP was rolled out on the 16 November 2021 whereby foreign source income received in Malaysia by individual residents (other than partnership income) are taxable. This also includes foreign source dividend income brought in by companies and limited liability partnerships.

These tax exemptions are subject to the conditions specified in the Income Tax (Exemption) Order to be issued at under Section 127 of the Income Tax Act 1967.

However, other foreign income that are not exempted and are brought into Malaysia from 1 January 2022 onwards must be reported in the Tax Return Form for the relevant YA. Foreign income which is still subject to tax and brought into Malaysia from 1 January 2022 to 30 June 2022 will be taxed at a concession rate of 3% as announced in the Budget 2022. Upon the expiry of the said period, the prevailing tax rate will apply according to the categories of the taxpayers.

This material or communication has been prepared for the sole purpose of providing general information and is not intended to be relied upon as accounting, tax or other professional advice. Consent has to be obtained from the firm prior to any act of republishing or circulating to the general public. While the information is considered correct at the date of publication, changes in circumstances or updates in tax ruling after the time of publication may impact its accuracy and reliability. We have not, by means of this material or communication, rendered any professional advice or services. Thus, we shall not be responsible for any losses sustained by any person who relies on this material or communication. Please refer to our tax advisors should you require our consultancy services.


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