Remote Working on a DP

4POSTS

6 years ago

Hello, my wife has received a job offer to working in Penang and they will issue her with an EP2 visa.
My plan is to apply for the accompanying DP visa as I’ll not be looking for employment in Malaysia. I will however continue to work for my UK employer remotely from Malaysia.
Initially I thought this would be fine as I’d just keep paying tax in the UK and it would effectively have nothing to do with the Malaysian authorities. However reading around, it seems like you are considered to be working in which ever country you are physically in (as a rule of thumb - not specific to Malaysia). Therefore i’d probably need to pay tax in Malaysia I guess(?).
I doubt there is anyway to get an EP for myself and MM2H is a far off dream at this point in time (savings...). Does anyone have experience in this matter and can advise?

Thanks

1 member reacted to this post

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Anou86 ViP

1047POSTS

6 years ago

Hi VenomBottle, welcome to the forum

I am sure there are other expats on this forum physically in Malaysia but working remotely. Your main concern is about tax isn't it ? And where do you have to pay your taxes....

Anoushka

MylesBarnes2218 Member

2POSTS

4 years ago

@VenomBottle hi there! Just wondering if you had an answer to this as I will be in a similar situation to you when we move to Malaysia in a few months time. Would like to know how you went about this. Thank you in advance!

cvco Malaysia Expert

1237POSTS

3 years ago

Ok my two cents. My accountant said that there is no reason to report to Malaysia any income made abroad as an expat. Only local income is relevant. As a result, I never filed any tax forms for income I made outside of Malaysia even though I was in Malaysia doing the work.

As I know, USA is the only country that taxes its citizens for work they do abroad but this may have changed as to other countries like UK and has to be checked. In the case of USA there are exclusions, I think previously its been that the first $80,000 of foreign income wasnt taxable but ALL income had to be reported. This is handled and calculated in the 1040 tax forms. You have to report all but not all is taxed. Other countries might be like this too and its easily googled.