I know that Malaysia has no capital gains taxes but they also don't tax your foreign income since it is a country with a territorial tax system. Trading equities(stocks..) should be then subject to this tax exemption since the gain on capital is tax free, plus it is foreign income. But I have read multiple stories where if you trade often, you will be considered trader and as such your capital gains will be taxed as income instead. I have read about their badges system where based on some questions you can be labelled as trader, as I have said, and treated as such. But I don't have info on the badges(or categories by which they can label you and therefore tax you). Does anybody have more information on this?
I speculate that the problem with the cases I have read was that the people have used local broker, hence it was no longer a foreign income...yet these were still gains on capital so I am confused still.. On the other hand they have mentioned the frequency of the trades as one of the questions for the trader badge but also whether this is one's only source of income or not. Which complicates this in case you would use an offshore broker, like most people do, you could be still taxed with income tax.
Can someone clarify this?
I speculate that the problem with the cases I have read was that the people have used local broker, hence it was no longer a foreign income...yet these were still gains on capital so I am confused still.. On the other hand they have mentioned the frequency of the trades as one of the questions for the trader badge but also whether this is one's only source of income or not. Which complicates this in case you would use an offshore broker, like most people do, you could be still taxed with income tax.
Can someone clarify this?
