Many people still do not know whether Internet income is taxable or not? There’re a lot of full-time blogger have been paying income tax. While some other bloggers may argue that the Internet income is not taxable in Malaysia.
By law, any and all income made by a Malaysian within Malaysia is taxable. And, every income is taxable, either local or foreign.
If you’re having a full time job then you will realize that there’s almost no way to run away from tax. In Malaysia, there’re only a certain tax deductibles you can claim in a year, these would include, books, computers, EPF, insurance and etc. However, all the tax deductibles will never be enough for you to not pay for the income tax.
However, if you own your own business, then you can have more tax deductibles. The things like meals, cars or houses are also tax deductibles for them. If come to comparison, a businessman who earns RM10,000 per month will pay less tax than an employee who earns RM10,000 per month.
However, if the money you earned is paid to your paypal account and you just keep it there. Then it’s not taxable. But, once you withdraw that money to your local bank account, then it become taxable.
But, one thing that I want to know is if let say we declare our blogging income in income tax, then will “blogging” expenses such as web hosting, Internet access fees, computer, online services, and etc tax deductible?