Questions about setting up a business and tax

[HIDDEN]

Hi

We are looking to move to Malaysia next year but not sure if we will do it under the MM2H or another scheme yet - we are early 40s.

My husband will still be working albeit not in Malaysia so we really just want to base ourselves and 2 kids in Malaysia but he will be deriving his income from outside Malaysia.

Has anybody done this on the MM2H or just done this? And how does the tax work out? Is income from work done abroad taxable as Malaysian income?

Looking forward to some answers or helpful pointers.

Thanks

[HIDDEN]

When I applied in 2004, I was still working for an Engineering company in Holland.
Under the MM2H scheme my income from Holland was not taxed in Malaysia. Unfortunately it was taxed in Holland, but that is a different story.

At that time we used our house in Kuantan just for holidays and for my wife to escape from wintertime.

[HIDDEN]

Welcome  Trippygirl,

More knowledgeable people will give a better idea, however I'm pretty sure you are only taxed In Malaysia from income derived in the country.  One assumes your husband will be liable to pay tax in the country in which it is earned.

For MM2H, the government want to see that you have a regular income coming into the country of RM10,000 or more, so this may work out OK for you. If you will be leaving the country frequently, then you could be just as happy with 90 day visa upon each entry to the country, but if you stay full time MM2H is a good option.

Cheers

Tink

[HIDDEN]

hi, trippygirl,

Welcome to the site. MM2H is for a second home and so as long as you meet the application requirements then it's no problem using the country as a base. In fact that's pretty much the intent of the scheme. You get 10 years and can base yourself here and have multiple exits/entries. At anytime you can decide to exit the scheme, withdraw your FD and "bon voyage." Or you can renew for another 10 years.

Income derived in Malaysia is taxed, income from overseas is not. The 90-Day visa is an option but you may not be enthusiastic about it as it involves leaving the country every 4 or 5 months with the kids in tow. MM2H is much more settled of course, and you don't have to worry about kid's schooling coinciding with visa runs.

[HIDDEN]

Thank-you all for your helpful replies.  The information about taxes is useful.

Are there many MM2H-ers who've moved with families or are most people retired and grown up children living abroad?  We are planning a trip to Penang next month for a look-see and would like to meet up with anyone who's done the move with school-going children.