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Q: If the foreign sourced income is not brought into Malaysia, but has been spent via payment instrument such credit card, is this income taxable in Malaysia?
A: If the credit card is being used for spending in Malaysia and is funded by the foreign sourced income, the income is deemed to have been brought into Malaysia, and will be taxable if the exemption conditions are not fulfilled.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru