09/02/2026

BIZ & FINANCE MONDAY | FEB 9, 2026

14

Offshore income – what is really taxable?

AutoCount receives approval to transfer listing to Main Market PETALING JAYA: AutoCount Dotcom Bhd, a provider of financial management software solutions, has received regulatory approval to proceed with the proposed transfer of its listing to the Main Market of Bursa Malaysia Securities. This approval follows the group’s steady growth trajectory since its debut on the ACE Market on May 9, 2023. The transfer is now in its final stages, with completion targeted for the current quarter. Managing director YT Choo said, “The approval to transfer to the Main Market represents a powerful validation of AutoCount’s growth journey. It reflects the strength of our fundamentals, governance standards, and consistent operating track record since our initial listing. We believe a Main Market listing will significantly enhance our corporate profile and broaden our investor base. Crucially, it allows us to tap into a wider pool of institutional investors, including funds that are restricted from investing in ACE Market securities. This elevation aligns perfectly with our long-term aspiration to sit alongside established blue-chip companies on Bursa Malaysia.” The proposed transfer is supported by a consistent track record of profitability. For the nine-month period ended Sept 30, 2025, the group recorded revenue of RM61.38 million and a profit after tax of RM27.41 million. This represents a substantial 90.9% year-on-year increase in profitability, driven by strong demand for digitalisation and e-invoicing solutions. The group has maintained healthy cash flow generation and a commitment to delivering value to shareholders. AutoCount said it remains focused on executing its business strategy, anchored by the accelerating demand for digital transformation among Malaysian SMEs. The group continues to see strong uptake for its cloud-based platforms and e-invoicing compliant software, as businesses prepare for the phased implementation of mandatory e-invoicing nationwide. Gold futures on Bursa seen trading at US$4,800-US$4,900 KUALA LUMPUR: Gold futures on Bursa Malaysia Derivatives are expected to trade at US$4,800-US$4,900 (RM18.957-19,352) per troy ounce this week, an economist said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed the recent market correction to gold prices retreating from an all-time high of US$5,500. “It appears gold prices are attempting to establish a new support level that reflects the prevailing supply and demand conditions,” he told Bernama. On Wednesday, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the precious metal was further supported by a softer US dollar and improving global risk sentiment, as bargain hunting emerged following last week’s sharp sell-off from record highs. On a week-on-week basis, February 2026 eased to US$4,877.9 per troy ounce from US$5,062.60 and March 2026 decreased to US$4,895.4 from US$5,080.90. April 2026 declined to US$4,912.20 from US$5,097.70. June and August 2026 settled lower at US$4,912.2 versus US$5,097.70 previously. Weekly trading volume fell to 149 lots from 1,705 lots a week earlier, while open interest slid to 151 contracts from 91 contracts. The price of physical gold was fixed at US$4,847.25 per troy ounce at the London Bullion Market Association afternoon fix on Feb 5. – Bernama

RECENTLY, there was a media announcement by the Inland Revenue Board (IRB) that it has identified 14,858 Malaysian tax residents with RM10 billion in undisclosed offshore financial accounts which have not been reported for tax purposes. It is not uncommon to find many Malaysians with foreign bank accounts. If a taxpayer has a foreign bank account, it is the duty of the taxpayer to disclose the fact by ticking the box provided for in the annual tax return form. By doing so, the taxpayer is informing IRB of the presence of the foreign bank account. In the event that any money in a foreign bank account is taxable in Malaysia, the taxpayer should follow through and bring it to tax in Malaysia. This will only happen if the income was sourced in Malaysia. In simple terms, the income should have been earned or generated from activities or investments carried out in Malaysia but subsequently remitted to the overseas bank accounts. Income such as interest, rent, dividend, commission, profits from offshore business activity, income from services provided overseas, etc, will not be taxable in Malaysia since the place at which this income is generated is overseas. In the event the taxpayer remits the income to Malaysia, the tax law allows Malaysia to tax such income. However, an individual taxpayer is exempted from tax on such remittance until 2036.

Is it all taxable? The

wealth was accumulated over a period of time since the paperwork to support that may be missing. Taxpayers must find alternative evidence to support their legitimacy of the balance. Such evidence could be in the form of inheritance which can be found in the will of the deceased or court documents supporting amounts due to the taxpayer in the past. It is also not uncommon for taxpayers to have funds placed overseas many years ago that subsequently generate investment income overseas. Such income will not be taxed in Malaysia. What should you do? If you have any offshore accounts that are not declared, do not wait for IRB to come and find you. You can voluntarily seek an amendment to your tax return in case you have not done so. It is advisable that before you do so, you’re able to explain the source of your funds or if you wish to be comprehensive, it is best for you to prepare a capital statement for the past five years. IRB should cooperate by accepting voluntary disclosure despite the fact that capital statements prepared by such individuals do not show deficit which will not result in any additional tax liability. This article is contributed by Thannees Tax Consulting Services Sdn Bhd managing director SM Thanneermalai (www.thannees.com). production output. “If you look closely at Malaysian companies in the semiconductor industry, virtually all of them were founded by or are run by people who once worked at American companies. “If you look at Broadcom and Intel, both of which have had quite a role in Malaysia and Penang, particularly Intel, they’re both run by people who were originally of Malaysian origin,” he said. Kagan highlighted that about 312,000 Malaysians work in US companies, with many more employed in associated contractor and supplier networks. Beyond E&E, Kagan said, segments showing growth potential include medical device manufacturing, driven by ageing populations and rising healthcare demand globally. He also spoke of Hot Wheels (scale model cars) production as something that touches people around the world. “Mattel has been making Hot Wheels in Penang since the early 1980s. I think they have produced more Hot Wheels cars in Penang than there are people in the world.” Despite the strong fundamentals, Malaysia continues to face tariff and policy challenges in its trade relationship with the US. Nearly 60% of Malaysian goods exported to the US are subject to a 19% tariff. Kagan said the importance lies in confidence rather than immediate commercial gains. “The real value of it is the signalling. It tells companies that both countries are willing to make long-term economic and political commitments,“ he said. Kagan will be leaving Malaysia on Feb 15, marking the end of his tenure after more than five years of diplomatic service in the country.

cardinal of Malaysian income tax is, unless there is fraud, negligence or wilful default by the taxpayer, IRB is barred from raising assessment beyond the five-year time limit. For taxpayers who have foreign bank accounts but have not disclosed them in the tax return, the chances of such taxpayers being pulled up by IRB are high. In the event you are pulled up, IRB will ask you how the foreign funds were accumulated and this will inevitably lead to a requirement to prepare a capital statement for the past five years. The capital statement will capture your increase or decrease in wealth on a year-to year basis in and outside Malaysia. The capital statement for the individual will also capture assets that has been transferred to minors below the age of 18. It is also not uncommon to club husband and wife into a single capital statement. In simple terms, the increase in wealth on a year-to-year basis must be reconciled with the income that has been declared for tax purposes together with other income that is not subject to tax such as capital gains, exempt income, offshore income which are not remitted back to Malaysia, etc. It is possible that among the 14,858 cases mentioned, the bank balances may contain wealth that was accumulated over a long time. The difficult part here is to prove that such principle coming because Malaysia is integrated into global supply chains,” Kagan told reporters during a press conference at the Penang Institute on Friday. “When you get investment from an American company, you almost always get a going concern. You get a factory, you get an R&D centre that produces value for Malaysia. There are other countries where you get a high profile ceremony, you get some quick construction and then empty buildings,”he said. Kagan described US companies as long term partners that operate within regulatory frameworks. “As a general rule, American companies work very, very hard on compliance. They invest in corporate social responsibility programmes. They don’t do this as charity. They do this because American companies understand that they have a stake in Malaysia,” he said. According to Malaysia External Trade Development Corporation, Malaysia’s trade performance for the January-November 2025 period reached RM2.775 trillion, up 5.8% year on-year. Exports climbed 6.1% to RM1.454 trillion, while imports rose 5.6%, resulting in a RM132.6 billion trade surplus. Penang was among the states recording strong export growth in 2025, reflecting its role as a manufacturing and export hub within Malaysia’s broader industrial ecosystem. Electrical and electronic (E&E) products remain central to both Malaysia’s export profile and US demand. In 2025, E&E exports accounted for about 44% of total exports, with semiconductor shipments forming the core of that strength. Kagan said the impact of US investment in the semiconductor sector extended beyond

Malaysia’s supply chain strength keeps US firms committed, says outgoing envoy

Ű BY T.C. KHOR newsdesk@thesundaily.com

GEORGE TOWN: Malaysia’s integration into global supply chains, rather than short-term incentives or one-off trade deals, continues to attract and retain American investment, says outgoing US Ambassador to Malaysia Edgard D. Kagan. He cited Penang as an example of how a sustained US corporate presence can shape local economies over time. “Companies aren’t coming to Malaysia because they want to export to China. They’re

Kagan describes US companies as long-term partners that operate within regulatory frameworks.