Comments on: Malaysians, Your Blogging Income is Taxable!

By: encikwan

encikwan — Sun, 10 May 2009 15:41:04 +0000

If you have other income sources in Malaysia, do not remit blogging income to Malaysia and use the income to pay your vendors, e.g. web designer and developers

By: epson

epson — Wed, 06 May 2009 01:38:50 +0000

If you invest in either equity market or property, capital gain is not taxable

By: 顽皮宝宝

顽皮宝宝 — Thu, 30 Apr 2009 16:37:44 +0000

Yes, Colin. It’s time for you to change accountant.

By: James

James — Thu, 30 Apr 2009 09:11:04 +0000

Colin,

if I’m not mistaken, the part you mention is for income you earn while you are out of Malaysia, if remitted, is not taxable. So since most people are in Malaysia, when the money is brought in to Malaysia, it is taxable.

I could be mistaken. Anyone can confirm this?

By: Colin Charles

Colin Charles — Thu, 30 Apr 2009 04:31:58 +0000

I’m sorry, I’m here to call your bluff. Read:

“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.”

http://www.hasil.org.my/english/eng_NO2_1_1A.asp

So anyone making money from AdSense in recent years, will NOT be needing to be paying income tax. Time to change accountants?

-c

By: elvin

elvin — Sun, 26 Apr 2009 19:24:38 +0000

according to my accountant friend… if bring the foreign earned back to malaysia… then its taxable…
for example, if the money u earned is paid to your paypal acc and u keep it there.. then its not taxable… but once you withdraw tat money back to ur malaysia account .. then it become taxable…
for adsense…. it always be taxable coz you bring the money in back here either via western union or chq…

By: 顽皮宝宝

顽皮宝宝 — Fri, 24 Apr 2009 18:02:42 +0000

The income of any person accruing in or derived from Malaysia or received in Malaysia from outside Malaysia is taxable in Malaysia.

If the income is not bring in to Malaysia, then it will not be taxable in Malaysia. However, it shall be taxable in the country where you received or keep the money.

By: James

James — Thu, 23 Apr 2009 08:05:42 +0000

icelim above is correct to say that capital gain is not taxable in Malaysia. Our tax laws don’t tax capital gain but income ie dividend.

Just wonder however if we don’t bring the income in to M’sia, is it still taxable?

By: Muhaimin

Muhaimin — Thu, 23 Apr 2009 06:07:37 +0000

How they wil govern this to blogger?

By: 顽皮宝宝

顽皮宝宝 — Sun, 19 Apr 2009 08:40:52 +0000

FOREX, US stock or options profit is not taxable because it is capital gain. Even though you are playing FOREX, stocks or options in Malaysia, the profit that you made is not taxable too, only the dividend (if it is not an exempt income dividend) & interest you earn from these investment is taxable.

When Adsense, Nuffnang, Advertlets & etc pays you, you are receiving income from the activity that you are doing in Malaysia. Therefore, it is taxable.

By: GeminiGeek

GeminiGeek — Sun, 19 Apr 2009 05:57:07 +0000

It is taxable. Definitely. Please don use the Sch6 exemption in the argument. Blogging is like a business already.

And as for allowable deduction, I can list out a few reasonable one:

1. Internet bills. Though it is good to apportion them to personal and business use. It would be even better if you could register a new account for the sake of business use.

2. Electricity. Though you might operate at house, but you still can get electricity deduction. Apportion based on floor size, it should be reasonable in the eyes of LHDN.

3. Webhost/Domain cost. This is 100% deductible.

4. Your equipments in your home office. Computers, tables, webcams, etc. You may claim this over the period of few years as capital allowance.

5. Softwares licences that you bought. Claim it as your fixed assets under capital allowance. Licence renewal fee can be claimed as expenses.

By: Satya

Satya — Sun, 19 Apr 2009 04:53:40 +0000

Yeah…. how will they know on your income……..

By: Jeremy

Jeremy — Sun, 19 Apr 2009 04:00:08 +0000

I believe none of online marketer willing to declare 100% tax. Why pay them so much?

By: Marco

Marco — Sun, 19 Apr 2009 03:28:51 +0000

I remembered I did mentioned that Google Income is non-taxable in Malaysia at permalink as below:

http://selfhelp4u.blogspot.com/2008/03/google-adsense-income-is-exempted-from.html

This is a gray area worth to find out more. Maybe one of these days I will visit LHDN to find out more.

By: alantanblog

alantanblog — Sun, 19 Apr 2009 01:37:43 +0000

1)If we declare the income under personal name, is “blogging” expenses such as web hosting, Internet access fees, computer, online services, etc. tax deductible?

2) If there any tax advantage we setup a sole propertiry company rather than declare under personal name?

By: dannyarcher

dannyarcher — Sat, 18 Apr 2009 18:13:05 +0000

Look at it this way – as long as a person has a steady income, there will be tax.

By: LcF

LcF — Sat, 18 Apr 2009 18:05:52 +0000

@Everything Malaysia: I should add that “Every income is taxable, either local or foreign.” Has the FOREX profit taxed in US? If it is not, then it is taxable in Malaysia.

AdSense income is not exemptable because you are making the money IN Malaysia, AND Google did not deduct TAX from your AdSense income.

By: Everything Malaysia

Everything Malaysia — Sat, 18 Apr 2009 17:35:38 +0000

That is something conflict if to me.
If playing FOREX, US stock or options online, profit is not taxable because it is US market and not in Malaysia.
But if Adsense pay you, can you exempt tax? but not to Nuffnang and Advertlets?