| Frequently
Asked Questions |
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| Fixed
Deposit |
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Can I withdraw my fixed deposit any time
during my stay in Malaysia? |
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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. After
1 year, participants are allowed to withdraw the Fixed Deposit
but must maintain a minimum amount of US$15,000.00 or RM60,000.00
at all time. This money cannot be withdrawn for as long as
the participants are still interested in this programme. |
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Can I place the fixed deposit in a Malaysia bank located in
my country? |
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No.
Participants have to place their fixed deposits in any Malaysian
local bank or financial institution in Malaysia. |
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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? |
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No.
Participants are required to fulfill the fixed deposit requirement
as the purchase of a house is not compulsory for participants
under this programme. |
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Am I allowed to withdraw my fixed deposit for a few months
and then topped it back later? |
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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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When can I withdraw my fixed deposit? |
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Deposit after the one-year period (must maintain a minimum
amount of US$15,000.00 or RM60,000.00) 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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Can I open a restaurant, book shop or
clinic in Malaysia under this programme? |
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Participants
under this programme are allowed to invest in businesses but
must adhere to the Malaysian Government's rules and regulations.
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They
are allowed to invest in local companies as a partner. They
are allowed to attend Company Board Meetings as one of the
company directors but they are not allowed to be actively
working in the company. Participants can participate in the
local share market. |
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For
more information on investing in Malaysia, please contact:
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Malaysian
Industrial Development Authority (MIDA) |
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Level
4, Plaza Sentral Jalan Stesen Sentral 5 Kuala Lumpur Sentral
50470 Kuala Lumpur Malaysia |
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Tel:
603-2267 3633 Fax: 603-2274 7970 |
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E-Mail:
promotion@mida.gov.my Website: www.mida.gov.my |
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Employment |
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I am a qualified doctor in US. How can I get to work in a
Malaysia hospital or a private hospital? |
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Under
Malaysia My Second Home Programme, seeking of employment is not
allowed. However, you can apply to the Human Resources Ministry
seeking 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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Do kindergarten level child need a Student Visa to attend
kindergarten here? |
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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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If my children are already married and want to study in Malaysia
with their husband, do they need to pay the fixed deposit? |
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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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Are
the participants entitled to any special entitlements? |
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All
participants are allowed to purchase residential
properties of value more than RM250,000.00 each.
In Sarawak, must purhcase more than RM350,000.00 |
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Can I purchase a house for residential purpose and a shop
lot to be rented out? |
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No,
you are only allowed to purchase residential properties. |
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Do
I have to pay the yearly assessment and quit rent for my houses
like the local? |
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Yes. |
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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? |
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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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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)? |
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Participants
can purchase any type of housing property direct from property
or housing developers. However, they are only allowed to purchase
semi-detached or bungalow properties or condominiums from
private individuals. Participants are not allowed to purchase
single storey and double storey houses from private individuals.
Participants are advised to purchase residential properties
with CF (Certificate of Fitness) directly from the developers. |
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Is
the RM150, 000.00 foreign property ownership regulation applies
to landed property only? |
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No.
It also applies to other properties with strata titles such
as condominiums, apartments and service apartments. |
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If I buy a piece of
land costing RM100,000.00 and to build a house costing RM200,000.00,
which is less than RM250,000.00 regulation, am I breaking
the regulation? |
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No,
since the total cost of the whole house purchase is RM300,000.00
which is more than the RM250, 000.00 and above requirements. |
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Do
I need to obtain prior approval from Foreign Investment Committee
(FIC) for the purchase and sale of my house? |
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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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Am
I subjected to the property gain tax if I make a profit from
selling my house? |
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Yes. |
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Car
Purchase |
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Is
a participant who buys a second-hand local car eligible for
tax exemptions? |
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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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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? |
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Given
the following situations: |
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i.
If the car is repaired and sold it will be subject to the
applicable tax/duty according to the prevailing rates. |
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ii.
If car is written off, taxes will be waived. |
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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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When can I sell the car, which has been given all the tax
exemptions? |
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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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What kind of taxes are the participants of this programme
normally subjected to? |
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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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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? |
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Interest
earned by an individual from fixed deposit account is exempted
in the following situations:- |
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i.
Period exceeding twelve months or more- any amount of interest.
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ii.
Period not exceeding twelve months- interest on fixed deposit
account of up to a maximum of RM100,000.00. |
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Is
income remitted from abroad taxable? |
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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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If
the participants have to submit income tax return to the Income
Tax department, are they entitled to any exemptions under
the programme? |
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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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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? |
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Under
this Programme, pension remitted to Malaysia is exempted from
tax. |
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Import
Duty |
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Is
used personal and household effects subject to tax? |
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Used
personal and household effects brought to Malaysia from country
of domicile is not subject to tax. However, the participants
of this program must declare the items at the point of entry.
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Driving
License |
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I
have an international driving license; do I still need to
sit for a driving test to obtain a driving license in Malaysia? |
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Malaysia
recognises all international driving licenses. Therefore you
do not need to obtain a new driving license in Malaysia as
long as your license is still valid. |
