The tax laws is different from country to country and in the Malaysia, the income from blogging or any internet business is generally taxable. Based on the taxation rules, all income realized from whatever source is considered a taxable income.
Legally, bloggers need to report their online income. However, not everyone does that because of one reason or another. For me, there’s a specific law in our country that makes our income from blogging and other internet business as a tax exempted. But, do we still need to declare our online income? Until what income level should we declare? That’s why our tax laws are not interpreted in such a way where most of the bloggers can follow.
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.