Taxing Of Foreign Source Income – Keep It Simple, Please

Malaysia may consider adopting a similar approach to the UK i.e., taxing an individual on FSI earned only after they become a Malaysian tax resident, and not before. Therefore, based on the illustration above, FSI earned before 1 July 2022 and remitted should not be taxed in Malaysia, while FSI earned after 1 July 2022 will be taxed, if brought back to Malaysia.