I'm a newbie entrepreneur living in Malaysia and i don't knw a whole lot about taxes because i'm not employed by a huge corporation. I make a living with my online revenue.
Does double taxation agreement apply? where i don't have to be taxed again?
if yes, do i still need to declare? What are the white and grey areas on this?
I don't want to break the law yet i want to knw the current loopholes of earning an income that is already being taxed outright @30%
First I'm lot a tax attorney or even know anything about Malaysian tax law. I'm however a person that has moved around a lot and have encounter this situation before.
You will must likely have to declare your US income in your home country. However some local tax laws allow for a deduction of foreign tax paid at source. I have not found a US tax treaty between US and Malysia but you should contact a local tax attorney or the tax agency there and ask if they allow deductions or exemptions for foreign tax paid at source.
If they do, you would declare your income and deduct the amount of tax already paid to the US. You may or may not still be liable for additional tax on that income. Again it depends on local tax rates and policies.
It's never a good idea to hide income from your tax agency though.
If your subject to US taxes, a lot of companies will take them upfront (withheld taxes). But if you're not a US citizen you shouldn't be subject to US taxes. If I remember correctly, they allow you to declare that exclusion when you open a seller's account.
In this case, amazon kindle direct publishing takes 30% at the source before paying out .everyone is not exempted from this 30% withholding unless their country has a treaty with the US gov...