Foreign Source Income on ITA 1967. The Vague Story to be Told!

From the observation of a few companies both medium and large companies respond on foreign source income issue. And from the recent research that I got from online, and forums, what I can generalised the answer is in a way that, the most logic and to seek for the truth.

As for the answer, the residential or the period of time whereby an individual resides and where he resides is eventually the most important point.

From the previous story of Mr. J, he is residing in Malaysia, and even with foreign source of income, he is subjected to Malaysian tax. In a way to tell, if he is a Malaysian and in tax-scope of resident status is in Malaysia as well, and also eligible to US Tax Status, he will not be subjected to Malaysian tax, but is to US Tax. And as US and Malaysia do not have the Double Taxation System, so Mr. J will either be taxed in Malaysia or either in US. That's the simple story.

A very good example as well will be blogging, if you are working for Google. And Adsense (sub company of Google) is paying for ads you earned from your website. Google paid you and apparently your income annually reaches more than RM 27 000, you are subjected to Malaysian Tax simply because you work in Malaysia (don't talk about the IP address stuff, later MCMC have to get involved ady).


Anyway to know more, there is an interesting link as below, that shares many funny and true stories;
http://forum.lowyat.net/topic/1003595
http://answers.yahoo.com/question/index?qid=20091222065411AAPJzhN
http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html