Benefits & Incentives

These are some of the benefits and incentives enjoyed by MM2H Visa Holders:-

 *       Car Purchase

Successful applicants are allowed to bring in one personal car OR choose to purchase one locally-assembled car without the need to pay import duty, excise duty and sales tax.

 *       Tax Free Income

 All income brought into Malaysia is tax free

 *       Domestic Helper

MM2H participants are allowed to employ one domestic helper

 *       House Purchase

Participants are allowed to purchase more than one residential property which must be above the minimum ceiling price set by the respective state ∞where the property is located which is generally RM500,000 and above for each property.

 [Note: All the above is subject to the prevailing guidelines, rules and regulations in Malaysia][RM= Malaysia Ringgit [1US$ = RM3.02277; 1 Euro = RM4.00082 : 1DM = RM2.04559]

∞∞∞

House Purchase:

Any foreigner may purchase any number of residential properties in Malaysia, subject to the minimum price established for foreigners by the different states. They start from RM500, 000 per unit for most states, from 1st January 2010. Fixed deposit withdrawals for purpose of house purchase is allowable for property bought under the name of the MM2H main applicant only. Except that, it is important to check state laws before making any commitment, as the minimum purchase price is not standardised between states.  Real Property Gains Tax (RPGT) included as shown in the table below:

Holding Period                                           RPGT Rates  
  Companies Individual

(Citizen & PR)

Individual

(Non-Citizen)

Within 3 years
30% 30% 30%
Within 4th years
20% 20% 30%
Within 5th year

Exceeding 5 years

15%

5%

15%

0%

30%

5%

                                                           

**RPGT rates are obtained from Malaysia Investment Development Authority (www.mida.gov.my)

 

State Minimum Foreign Investment Value (RM) Levy Limitation
Johor 500,000 RM 10,000 No Limit
Kuala Lumpur NO
Selangor
Malacca
Penang (MM2H) 500,000 NO 2 units only
Penang (Strata Title for Island & Seberang Perai) 1,000,000 NO No Limit
Penang (LANDED PROPERTY FOR SEBERANG PRAI AREA ONLY)
Penang (LANDED PROPERTY FOR KAWASAN PULAU SAHAJA) 2,000,000

For non-MM2H participant to invest in Penang, the MFIV is varies from RM 1 million to 2 million as stated in the table above.

 Car Purchase

The MM2H participant may purchase one new motorcar made or assembled in Malaysia. He/ she will be exempted from paying excise duty and sales tax on the new motorcar.An application to PURCHASE a new motorcar made or assembled in Malaysia must be forwarded to the Ministry of Finance within a period of one year from the endorsement date of Malaysia My Second Home (MM2H) social visit pass.

Note: Do not make an outright purchase of the motorcar before obtaining approval for tax/ duty exemption from the Ministry of Finance. However, a booking for a motorcar may be made prior to obtaining approval from the Treasury.

Import Personal Car:

The MM2H participant may import one motorcar, which belongs to him/her country of citizenship or where he/she last domiciled. He/she will be exempted from paying import duty, excise duty and sales tax on the imported motorcar.Application to IMPORT a motorcar from the participant’s country of citizenship/ last domicile must be forwarded to the Ministry of Finance within a period of six months from the endorsement date of Malaysia My Second Home (MM2H) social visit pass

IMPORTANT: The condition for the car import is that the MM2H participant should be the owner of the motorcar for at least 6 months prior to obtaining the MM2H visa, as evidenced in the motorcar registration document.

Domestic Helper:

Each applicant is allowed to apply for one maid subject to the prevailing guidelines of the Immigration Department of Malaysia.

Education:

Applicants are allowed to bring their children who under 21 years old and not married as their dependants under this programme.

Please note that tertiary educational institutions (private colleges and universities), requires their students to have a Student Pass. Therefore, MM2H dependents who are enrolling into tertiary educational institutions, are required to terminate their MM2H Social Visit Pass in order to apply for the Student Pass and should be insured throughout their stay under this program.

Tax:

Participants are bound by the policies, systems and regulations of taxes of this country and they do not have exemption qualifications as granted to Diplomatic Missions in Malaysia.

However, tax exemption is given to pension remitted into Malaysia. Participants are required to obtain the endorsement from the Authorities in their country of origin as to the total amount of yearly pension received. A copy of this letter has to be submitted in their application.

Business and Investment:

Business set up available for participants under Malaysia My Second Home Programme by registering your business with the Companies Commission of Malaysia (CCM) under the Companies Act 1965, only eligible to register under limited company in Malaysia.

Working Part Time:

Participants of Malaysia My Second Home Programme can obtain part time work with terms and conditions applied.

Personal Income Tax

All individuals are liable to tax on income accrued in and derived from Malaysia or received in Malaysia from outside Malaysia. Income remitted to Malaysia by a resident individual is exempted from tax. A non-resident individual will be taxed only on income earned in Malaysia. The rate of income tax depends on the individual’s resident status, which is determined by the duration of his stay in the country as stipulated under Section 7 of the Income Tax Act 1967. Generally, an individual who is in Malaysia for at least 182 days in a calendar year is regarded as a tax resident (after deduction of personal reliefs).

Amount of Income Taxation Calculation (RM) Percentage % Tax(RM)
0-2500 2,500 First 0 0
2,501-5,000 2,500 Follow on 1 25
5,001-10,000 5,000 First
5,000 Follow on
3 25
150
10,001-20,000 10,000 First
10,000 Follow on
3 175
300
20,001-35,000 20,000 First
15,000 Follow on
7 475
1,050
35,001-50,000 35,000 First
15,000 Follow on
12 1,525
1,800
50,001-70,000 50,000 First
20,000 Follow on
19 3,325
3,800
70,001-100,000 70,000 First
30,000 Follow on
24 7,125
7,200
More than 100,000 100,000 First
Every ringgit after that
26 14,325
……….

Health Care/Medical care

Malaysia has a high standards of health, and its medical services are among the best in the region. Many doctors have been trained in Western countries and both doctors and nursing staff will usually speak English. Most medicines are widely available and dispensed by trained pharmacists in major towns.

All Malaysian residents are eligible for medical treatment from government clinics and hospitals, as well as a wide range of private clinics, but most expatriates and many Malaysians opt for the many private clinics and hospitals which can be found everywhere, for example in shopping malls or business complexes. These usually require immediate cash or credit card payments for health services. It is acceptable to approach specialists or hospitals directly without a GP referral.

A high standard of food hygiene is prevalent in Malaysia and those involved in food preparation are subjected to Health Ministry controls. Food handlers undergo regular screening against diseases.

 

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