I wonder if we have to pay tax for the money earn from Adsense. Well I make some research on this on the net and i get a couple of useful information from Malaysian Adsense earner themselves. Some of the verdicts I found online.

The Inland Revenue Board of Malaysia stated that if the profit that gain from foreign country is exempted from tax. Which means Adsense profit no need to pay tax.
Google Inc is from United States. So its a foreign country. We no need to pay..Hurray!!

If you pay tax on Google Adsense income in the US then you don't need to pay tax in Malaysia on that money because that come under a double taxation agreement
But can we file our tax under US goverment? No way!!

If the work to earn the money is carried out here (building the site, maintaining the site, handling the finances, etc.) then the money can be considered earn here and hence you must pay Malaysian tax on it?
Our blogging activities is carried out in Malaysia and money also transacted into our Malaysia accounts. Mean we have to pay!!
The conclusions is, whether to pay or not to pay is up to yourself. If you are not buying into properties or car, maybe you probably will not be audited by the Inland Revenue Board. Anyway I advise you to consult your professional tax consultant.


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