If you are earning income through these e-commerce platforms as a registered seller, it is necessary to report the income earned as your business income when completing your income tax return.

The classification of income from online businesses as foreign-sourced income depends on the location where the online business operates. If the business operates from or has a presence in Malaysia, the income earned is regarded as Malaysian-sourced income.

If it can be established that the source of income is overseas, meaning that the business operations are located outside Malaysia, the income earned will be considered foreign-sourced income. If this income has already been subjected to taxation in the country of origin, such as income tax, any income brought back to Malaysia until December 31, 2026, will be eligible for tax exemption in Malaysia.