AFTER Budget 2025 was announced, people have been eagerly going through the details, hoping to find beneficial measures to ease their financial situations.
With various incentives and relief strategies unveiled, residents are keen to learn how these changes might affect them.
But is it true that one of these measures includes extending the tax exemption on foreign-sourced income until Dec 31, 2036?
Verdict:
TRUE
The government has announced an extension of the exemption from individual income tax on foreign-sourced income, which will now continue until Dec 31, 2036.
This initiative was unveiled by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim during his Budget 2025 speech. It is part of a comprehensive strategy of tax relief measures aimed at easing financial burdens for residents.
The exemption applies to foreign-sourced income that has already been taxed in its country of origin.
It benefits resident individuals across all income categories, except for those earning through partnership businesses in Malaysia.
Previously, the tax exemption period for foreign-sourced income was from Jan 1, 2022, to Dec 31, 2026. This included tax relief on dividends for companies or limited liability partnerships, while non-resident taxpayers continued to enjoy full tax exemptions.
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