Expat Tips Malaysia

Can I place the fixed deposit in a Malaysia bank located in my country?

No. Participants have to place their fixed deposits in any Malaysian local bank or financial institution in Malaysia.

Can the purchase of a house in Malaysia, which is valued more than RM150,000,-, be considered as having fulfilled the financial criteria for this programme?

No. Participants are required to fulfill the fixed deposit requirement as the purchase of a house is not compulsory for participants under this programme.

Am I allowed to withdraw my fixed deposit for a few months and then bank it in back later?

No. Participants are not allowed to do this, unless for an emergency purpose but with prior approval from the Ministry of Tourism.

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

If my children are already married and want to study in Malaysia with their husband, do they need to pay the fixed deposit?

Not necessary. They can apply for a Student Visa once they have obtained places of study in Malaysia.

How can I get my children enrolled in Malaysian public schools?

Please write to the State Education Director at the state where you are staying. Approval and placement of your children would depend on the places available at the schools in the state. On enrollment you would need to pay a fee of RM120.00 for primary school and RM240.00 for secondary school.

Applications to our local universities are subjected to the following conditions:
i) for Arts and Humanities studies only,
ii) used the application form of the university selected
iii) fees charged would be at twice the rate of the local students

Please note that the ceiling is higher for houses in the State of Malacca and Johore as it has been set at RM250, 000,- and above each.

Can I purchase a house for residential purpose and a shop lot to be rented out?

No, you are only allowed to purchase residential properties.

Do I have to pay the yearly assessment and quit rent for my houses like the local?

Yes.

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?

Yes, provided he/she has a Will which indicates clearly to which 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.

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)?

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.

Are there any written documents from the authority yet, confirming the new RM150, 000.00 floor rates for foreign owned properties?

The recent reduced ceiling from RM250, 000.00 to RM150, 000.00 is mentioned in the Government’s economic stimulus package announced.

Does the RM150,000,- foreign property ownership regulation apply to landed property only?

No. It also applies to other properties with strata titles such as condominiums, apartments and service apartments.

If I buy a piece of land costing RM100,000,- to build a house costing RM100,000,- which is less than RM150,000,- regulation, am I breaking the regulation?

No, since the total cost of the whole house purchase is RM200,000 which is more than the RM150, 000,- requirements.

Do I need to obtain prior approval from Foreign Investment Committee (FIC) for the purchase and sale of my house?

Participants under this programmeme 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 programmeme. 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.

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?

Given the following situations:

1. If the car is repaired and sold it will be subject to the applicable tax/duty according to the prevailing rates.

2. If car is written off, taxes will be waived.

3. 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 basic.

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,- OR if the deposit period is one year. What is the exact regulation?

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 a maximum of up to RM100,000.00.

Is income remitted from abroad taxable?

Before the year of assessment 2004 income remitted from abroad to Malaysia (apart from pension) is subject to tax. However from the year of assessment 2004 all income remitted from abroad is not subject to tax.

Does the participant have to submit any personal tax declaration to the Income Tax Department of Malaysia, like Malaysians have to?

Yes.

If the participants have to submit income tax returns to the Income Tax department, are they entitled to any exemptions under the program?

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.