Does Malaysian tax residency automatically mean Malaysian tax liability?

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Malaysian tax residency does not automatically create Malaysian tax liability for Singapore employment income
Income received from employment exercised in Singapore is not liable to tax in Malaysia, even if the individual is deemed a Malaysian tax resident. The Inland Revenue Board of Malaysia (IRB) said residency status under the Income Tax Act 1967 (ITA 1967) does not automatically mean the person’s income becomes subject to Malaysian tax laws.
Being in Malaysia for over 183 days determines tax residence, not tax liability
The IRB stated that an individual residing in Malaysia for a period exceeding 183 days is deemed a resident for tax purposes in Malaysia under the ITA 1967. It also stressed that this resident status is a tax-residency determination and does not, by itself, decide whether each income stream is taxable in Malaysia.
Only Singapore employment income, with no Malaysia-derived income, is not taxable in Malaysia
The IRB clarified that if a Malaysian tax resident does not receive any income deriving from Malaysia and only receives employment income derived from Singapore, the individual is still not liable for tax in Malaysia. The key point given was that the Singapore employment income is not derived from the exercising of employment in Malaysia.
Residency in Malaysia does not automatically subject income to Malaysian tax laws
IRB’s clarification directly addressed confusion created by reporting that linked tax residence status to automatic taxability. It said resident status would not automatically result in the income received by the individual being subjected to Malaysian tax laws.
Remittances from abroad are also exempt under the ITA 1967
The IRB also said that any income remitted to Malaysia from abroad is exempt under Paragraph 28, Schedule 6 of the ITA 1967. This exemption was presented as an additional basis consistent with the position that certain cross-border income does not become taxable merely because it is received in Malaysia.

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Does Malaysian tax residency automatically mean Malaysian tax liability?

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