MANAGEMENT

Detailed explanation-1: -The income tax exemption on foreign-sourced income (FSI) received by any person (other than a resident company carrying on the business of banking, insurance or sea or air transport) was removed for all Malaysian-resident taxpayers from 1 January 2022, pursuant to the Finance Act 2021.

Detailed explanation-2: -5.1. 1 Effective from 1 January 2022, generally, all types of foreign income received in Malaysia by a resident is subject to tax.

Detailed explanation-3: -The government of Malaysia implemented the measure to impose tax on the income of residents derived from sources outside Malaysia and received in Malaysia through the Finance Act 2021, which came into operation on 1 January 2022.

Detailed explanation-4: -However, Section 27 of the Finance Act 2021 amended paragraph 28 of Schedule 6 to read as follows: “The income arising from sources outside Malaysia and received in Malaysia by any person who is not resident in Malaysia” is exempt from income tax.

Detailed explanation-5: -Company special service cash or prize awards are eligible for a tax exemption of up to RM1, 000. Grants for all types of approved green SRI (Socially Responsible Investing) sukuk and bonds are exempted from income tax for applications for issuance from 2021 to 2025.