| Fixed Deposits |
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| Q: |
Can I withdraw my fixed deposit any time during my stay in Malaysia? |
| A: |
Participants
are not allowed to withdraw the fixed deposit for the whole duration of
the one year period, unless for emergency cases and with prior approval
from the Ministry of Tourism. |
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| Q: |
Can I place the fixed deposit in a Malaysia bank located in my country? |
| A: |
No. Participants have to open a fixed deposit account in any Malaysian local bank or financial institution in Malaysia. |
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| Q: |
Can
the purchase of a house in Malaysia which is valued more than
RM150,000.00 be considered as having fulfilled the financial criteria
for this programme? |
| A: |
No.
Participants are required to fulfill the fixed deposit requirement or
monthly off-shore income for age 50 years and above as the purchase of
a house is not compulsory for participants under this programme. |
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| Q: |
Am I allowed to withdraw my fixed deposit for a few months and then topped it back later? |
| A: |
No.
Participants are not allowed to do this, unless for an emergency
purpose but with prior approval from the Ministry of Tourism. |
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| Q: |
When can I withdraw my fixed deposit? |
| A: |
After
a period of one year, the participant may withdraw his/her fixed
deposit for approved expenses relating to house purchase, education for
children in Malaysia and medical purposes OR when he/she decides to
terminate his/her stay in Malaysia by first informing the Ministry of
Tourism of his/her intention at Malaysia My Second Home Centre.
Participants can apply to withdraw part of their fixed deposit for
emergency cases such as medical purposes, etc. with prior approval of
the Ministry of Tourism. |
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| Investment |
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| Q: |
Can I open a restaurant, book shop or clinic in Malaysia under this programme? |
| A: |
No. Participants under this programme are NOT allowed to have their own businesses.
However,
they are allowed to invest in local companies as an inactive partner.
They are allowed to attend Company’s Board Meetings as one of the
company directors but they are not allowed to have an office in the
company. Participants can participate in the local share market.For more information on investing in Malaysia, please contact:
Malaysian Industrial Development Authority (MIDA)
Level 4, Plaza Sentral
Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Malaysia
Tel: 603 – 2267 3633
Fax: 603 – 2274 7970
E-Mail: promotion@mida.gov.my
Website: www.mida.gov.my
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| Employment |
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| Q: |
I am a qualified doctor in US. How can I get to work in a Malaysia hospital or a private hospital? |
| A: |
Under
Malaysia My Second Home Programme, participants are NOT allowed to
work. However, you can apply to the Human Resources Ministry seeking
special approval for you to work in Malaysia because of your special
expertise. If you are successful, you will be issued a work permit or
Employment Pass. You may join Malaysia: My Second Home Programme at the
end of your work permit if you decide to continue your stay in
Malaysia. |
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| Education |
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| Q: |
Do kindergarten level child need a Student Visa to attend kindergarten here? |
| A: |
Children
below the school going age (that is 7 years old) are not required to
apply for a Student Visa. They need only apply for a Social Visit Visa. |
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| Q: |
If my children are already married and want to study in Malaysia with their husband, do they need to pay the fixed deposit? |
| A: |
Not necessary. They can apply for a Student Visa once they have obtained places of study in Malaysia. |
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| House Purchase |
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| Q: |
Are the participants entitled to any special entitlements? |
| A: |
All
participants are allowed to purchase two units of residential
properties of value more than RM150, 000.00 each except for certain
states like Johor, Malacca, Penang (above RM250,000.00) and for certain
areas in Sarawak (above RM350,000.00). |
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| Q: |
Can I purchase a house for residential purpose and a shop lot to be rented out? |
| A: |
No, you are only allowed to purchase residential properties. |
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| Q: |
Do I have to pay the yearly assessment and quit rent for my houses like the local? |
| A: |
Yes. |
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| Q: |
In
the event of unforeseen death is the participant able to hand over his
Malaysian assets to any of his beneficiaries smoothly. Does the
Government have any restriction on this matter? |
| A: |
Yes,
provided he/she has a Will which indicated clearly to whom the
properties are to be given. If not the next of kin of the participant
will have to apply to the Government to have his properties released to
them as the rightful heirs. |
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| Q: |
Must
foreigners buy new Malaysia property only, such as from developers, or
can they purchase any property, such as from individual owners (second
hand or third hand property)? |
| A: |
Participants can purchase any type of housing properties provided that it has been issued with CF (Certificate of Fitness). |
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| Q: |
Is the RM150, 000.00 foreign property ownership regulation applies to landed property only? |
| A: |
No. It also applies to other properties with strata titles such as condominiums, apartments and service apartments. |
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| Q: |
If
I buy a piece of land costing RM100,000.00 and to build a house costing
RM100,000.00, which is less than RM150,000.00 regulation, am I breaking
the regulation? |
| A: |
No,
since the total cost of the whole house purchase is RM200,000.00 which
is more than the RM150, 000.00 and above requirements. |
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| Q: |
Do I need to obtain prior approval from Foreign Investment Committee (FIC) for the purchase and sale of my house? |
| A: |
Participants
under this programme are not required to obtain prior approval for the
purchase and sale of houses from FIC. However, they must write to the
Ministry of Tourism giving details of the house (location as well as
price) so that a letter can be issued to them certifying that they are
eligible to purchase the said property this programme. In addition,
they are required to send a copy of the approval letter obtained from
the respective State Authority which has authorized the purchase or
sale of the property concerned to FIC for information. |
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| Q: |
Am I subjected to the property gain tax if I make a profit from selling my house? |
| A: |
Yes. |
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| Car Purchase |
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| Q: |
Is a participant who buys a second-hand local car eligible for tax exemptions? |
| A: |
Second
hand cars are transacted on a willing buyer, willing seller basis and
the government do not levy any sales tax and excise duty on such
transactions. As such tax exemptions do not arise. However, second hand
cars which are imported are subject to sales tax and import duty at the
point of entry. |
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| Q: |
If I had a car accident and as a result I need to change the car, do I have to pay back the tax exemptions? |
| A: |
Given the following situations:
i. If the car is repaired and sold it will be subject to the applicable tax/duty according to the prevailing rates. ii. If car is written off, taxes will be waived.
iii.
If the participant wishes to buy another car, their application will be
processed on the merit of each case. Under normal circumstances a
participant of this program is allowed tax exemption for a car on a one
time basis. |
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| Q: |
When can I sell the car, which has been given all the tax exemptions? |
| A: |
Cars
that have been exempted from taxes and duties under this program can be
sold or its ownership transferred provided the prevailing taxes and
duties on the car have been paid prior to the transaction. However, for
imported cars the condition stipulated in the AP should be complied
before any sale or transfer can be permitted. |
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| Income Tax |
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| Q: |
What kind of taxes are the participants of this programme normally subjected to? |
| A: |
Income
tax is imposed on income earned from investments in local companies and
local share market. Apart from this, gains from the sale of landed
property are also subjected to real property gains tax. Please refer to
www.hasilnet.org.my for more details on the tax structure. |
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| Q: |
Is
the interest for their fix deposit taxable? Some say it is taxable,
other it is not taxable. If the deposit amount exceeds RM100, 000.00 OR
if the deposit period is one year. What is the exact regulation? |
| A: |
Interest earned by an individual from fixed deposit account is exempted in the following situations:-
i. Period exceeding twelve months or more – any amount of interest.
ii. Period not exceeding twelve months – interest on fixed deposit
account of up to a maximum of RM100,000.00.
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| Q: |
Is income remitted from abroad taxable? |
| A: |
Before
year of assessment 2004 income remitted from abroad to Malaysia (apart
from pension) is subject to tax. However, from year of assessment 2004
all income remitted from abroad is not subject to tax. |
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| Q: |
Does
the participant have to submit any personal tax declaration to the
Income Tax Department of Malaysia, like Malaysians have to? |
| A: |
Yes. |
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| Q: |
If
the participants have to submit income tax return to the Income Tax
department, are they entitled to any exemptions under the programme? |
| A: |
They
will only be taxed on the income earned in Malaysia after taking into
account the personal tax allowances. The income will be taxed according
to a progressive tax rate structure. |
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| Q: |
I
am a German in which my country has a `double taxation agreement’ with
Malaysia. I have an early pension and if I stay in Malaysia for at
least 184 days, my pension scheme will not be taxed by the German
Government and will also not be taxed by the Malaysia government. Is
this true? |
| A: |
Under this Programme, pension remitted to Malaysia is exempted from tax. |
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