What income subject to Income Tax in Malaysia?

What income subject to Income Tax in Malaysia?

A lot of people are confuse when it comes to the assessable income in Malaysia. There is always a question on: Does my income subjected to Malaysian Income Tax? 

Malaysia has adopted the territorial scope of income. Where any income that is not a capital income, which derived from the source within Malaysia during the year of assessment will subject to Malaysia tax.

The following four factors are to be considered when determining the tax liability:

a) If the income is of capital nature, it does not fall within the gross income for taxpayer;

b) Only income that come into a taxpayer during a particular year of assessment are subjected to tax in that year;

c) Does the income generated from Malaysia?

d) Who is the person or legal entity upon whom the tax liability falls?

Take note that some of income might subject to tax in Malaysia but they are exempted under Schedule 6 of Income Tax Act 1967.

Reference: Does a Non-citizen subject to Income Tax in Malaysia?

Reference: Non-Resident Vs Resident