Tax on foreign sourced income a significant change – Deloitte Malaysia

[superadmin]

BUDGET 2022 expects an increase in tax collection by 5.9% on the back of a better economic outlook. Corporate tax collection is expected to increase by 8.1% to RM65.5 billion which is higher than pre-pandemic numbers in 2019. 

This is optimistic but remains challenging if businesses are still trying to bounce back from Covid-19. The introduction of the one-off tax on companies that make super profits and taxation on foreign sourced income may provide some cushioning, but I also expect tax audits to be intensified to meet the collection target.

From a tax reform perspective, the taxation on foreign sourced income is a significant change and will increase the tax bill of companies with overseas operations.

More details should be provided in the finance bill in this regard and I hope that there are special circumstances available for companies to continue to enjoy exemption on such income.

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[herbertclark]

Many people aren’t aware that if they’ve worked in Germany and later moved away—especially outside the EU—they might be able to claim back their pension contributions. Understanding the process is key, and this resource explains how the pension refund system works in Germany, including who qualifies and what steps to follow.