Does income derived from Adsense or other internet program need to paid tax?

Does income derived from Adsense or other internet program need to paid tax?
If you are in US, this shall not put into question, since you need furnish the tax reference before payment. They will deduct and inform the authority about your tax position. Do you notice that if you are outside of US, they won’t ask anything? Normally they need to deduct the withholding tax up to 30% before any payment to foreigner (depend double tax treaties sign with any country) In this case meaning they never regard payment to you is US source, they totally ignore you and treat your income as outside source. The system is complex; so do not confuses here, Just want to let all you know there are possible that we need to paid tax for such income.

To determined the tax position, there are some criteria need to determined. (this is universal rules apply to other country as well)

Source of Income
“ The basis of taxation on employment income is that income from exercising an employment in Malaysia is regarded as Malaysian derived income. All income attributable to the employment exercised in Malaysia is subject to Malaysian tax irrespective of where the remuneration is paid. Where an employee is required to perform his duties outside Malaysia, the entire remuneration is still chargeable to Malaysian tax if the services rendered outside Malaysia are regarded as incidental to the Malaysian employment.”
What is the meaning for above statement? Whether the adsense or internet income is created in Malaysia? Or your own country, I believe it is not clear here/. We may do our blog/webside in home, in oversea, any place will possible. So does the income derived from Malaysia source? Yes, the source is Malaysia rce then you need paid tax. If not then no need paid. But if not where is the source of income, USA not recognized as income from their source, so the % is high that you need paid tax.

Dual Employment

“Where an individual has regional responsibilities and performs services for the head office or parent company outside Malaysia under a separate employment, he is regarded as employed by the overseas company in respect of services performed outside Malaysia.
On this basis, that part of the remuneration, which is paid by the overseas company, is not assessable to tax in Malaysia provided that:
It is not charged back to the Malaysian branch or subsidiary directly or indirectly;
It is not received in or remitted into Malaysia; and
The employment with the overseas company is exercised exclusively outside Malaysia. “

On this statement meaning that if your income never remittance back to Malaysia, definitely no issued here, so if your internet income amount is too small, Don’t do remittance. Or one tips you can do here, you can remittance it into Singapore or any nearer country, And keep it for some time, later when go for shopping or traveling then take up the money for use. (you can keep in US if you want ) then no tax problem.Last tips. If you really need paid tax, declare it under business source, for example, if you do a blogs or web for traveling, sure you need cost incurred for transport, hotel…… air tickets. You can off set with the income from advertisement. But remember must reasonable, don’t over claim. I can’t teach you here, unless I got live example. May be you can email me, I will discuss further.