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Q: I am an engineer employed in Malaysia and will be seconded overseas for 2 years to assist a related company in China on a project where the direction and control of the work lie with the related company and are not connected to my employment in Malaysia. Will my employment income for these 2 years paid by the related company be subject to tax in Malaysia?
A: As the overseas duties in China are not incidental to your employment in Malaysia, the remuneration received for this period is not deemed derived from Malaysia. Hence, the employment income is not taxable in Malaysia.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru