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.
Source: https://phl.hasil.gov.my/pdf/pdfam/KM_LHDNM_16112021_PROGRAM_KHAS_PEREMITAN_PENDAPATAN_YANG_DISIMPAN_DI_LUAR_NEGARA.pdf https://phl.hasil.gov.my/pdf/pdfam/KM_LHDNM_16112021_PROGRAM_KHAS_PEREMITAN_PENDAPATAN_YANG_DISIMPAN_DI_LUAR_NEGARA.pdf
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