On principle, I have decided not to apply for the MM2H Programme

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I'm not sure why they issued a tax reference but I suppose they wanted a record on their system. Officer typed double taxation as reason for registration.

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Thanks, Bill....maybe they don't have a reason to issue us one then.

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Interest earned on FD, isn't an income for the MM2Hrs?

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Interest on FDs lasting 12 months or more is exempt from tax.

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Hi BB,

Got a similar experience with Malaysian tax office when I tried to register. The email I received listed:

"Congratulation to you on your decision to reside in Malaysia under the  Malaysia My Second Home programme. I just wish to reaffirm , that incomes received in Malaysia from outside Malaysia are exempted from Income Tax. Thank you and have a nice day."

At the moment I'm paying 2.5% tax on my Dutch pension and when I checked the box "Double taxation agreement" in the official Dutch on-line tax programme, the result was whatever tax I paid, was refunded.

Bottom line: Hasilnet was not interested and the Dutch tax office is refunding me the tax I'm paying now.
Ok, I'm only losing some interest. A fair price to pay to be refrained of another tax office.

Regards, Danny

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Thanks for the reassurance and confirmation People at the tax office just gave us that funny look when we asked for the tax reference and tax form. I feel better now knowing that we're not falling in between some cracks 
Yes, even income from FD here are tax exempted - over Rm100,000 for over a yr and under Rm100,000 for under a year....some thing to that effect.

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Interest on FDs lasting 12 months or more is exempt from tax.

What I meant is, if you have interest or other gains that require income tax to be paid, then they have to give you a tax reference no. in order to file tax returns.

I think an official tax return is stronger proof of your residency other than passport.

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>I think an official tax return is stronger proof of your residency other than passport.

But you won't be submitting a tax return here unless you have enough Malaysian income to pay tax. FD Interest and overseas income isn't taxable.

UK tax authorities will require a Double Taxation form signed by the Malaysian Inland Revenue confirming residence here. A copy of a Malaysian tax return won't be enough. I don't know about other countries.

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hi, BillJay,

I take your point about residence here, although I'm not sure about it. Fair enough, no matter.

I like the security of an defined entitlement, rather than something along the lines of, "what are you doing here" the reply being, "everyone has got to be somewhere" (from the Goon show). But that's me.

However, on the 3-month social visit pass you need to leave at the end of every 4th month.

I found that by the end of the second year, and certainly during the 3rd year, the immigration officers were getting distinctly jittery about my almost continuous presence. They didn't want to listen to my stuff about investing in Malaysia (and yachts) but were concerned with my seemingly living in Malaysia on a tourist visa.

A couple of times it came close to a refusal of entry and referral to the officer-in-charge. Once it resulted in a 1-week social visit pass and being told to report to the local immigration office. It meant that I was often being pulled out of the line, both for exit and entry. I was always asked, "but why are you always here." The implication being that I was working. It became just too much hassle.

On a holiday coach trip to Thailand all the other passengers got their passports back except me. I was the one that was "interviewed" and it took more than 1 hour. Strangely enough getting back in was no problem.

I dumped that passport and got a new one. Same thing after a couple more years. Too much stress and messing around for me. Of course, it may be different if you're a frequent flyer as I feel that airport immigration is more generous than arriving/leaving by road. Certainly it's the case in Singapore.

regards, Scott

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Hi Scott,

I have a MM2H visa but I don't know that I would have applied if I'd had to use an agent. I can't see that I have benefited financially.

However I accept that there might be less hassle with immigration. I've never had any trouble but I've only been here for 14 months - always leaving and returning via airports on my 7 trips out of the country. I have friends in Singapore and Bangkok so I'm never here for more than 3 months at a time.

If people like Mourad will be flying in and out of the country with no trouble from Immigration officials, then MM2H isn't terribly attractive - on the assumption that overseas income is exempt from tax with or without having a MM2H visa. That was my original question.

Regards,

Bill

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hi, Bill,

Thanks for the original question. It has certainly been explored and expanded, and that's the point behind this forum. And there may yet be more comments from other members.

Since having the MM2H visa I've had no trouble at Immigration, in fact, quite the reverse. I'd agree with you that financially there's not much benefit from MM2H, but then, there's not much loss either.

I would also have thought twice had I been required to use an agent. But I would still have gone ahead, with the rock bottom cheapest agent, because of the need to eliminate the social visit pass hassle.

The benefit of MM2H, for me, comes from the ease of moving in and out of the country and not having to be continually aware of a 3 or 4 month limit.

regards, Scott

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Hi All,

I see the points being made but surely the cost of the visa - even if it is RM 10000 is good value ( and it is clear you can get it for less than this). Alone I saved nearly a 100K on a new car!! Added to what Scott says about the possible aggro with immigration overall it is good value for money.

Leaving the money issue aside Malaysia is a great place to live ( after OZ). I could not wait to get out of the UK. If the OZ tax laws were the same as Malaysia's I would definitley live there but the best of both worlds is living in Malaysia and spending the summer in OZ.

Cheers

Brian

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Hi Brian,

I don't drive so saving tax on buying a car wasn't relevant. I do agree that Malaysia, with all its faults, is a great place to live.

Cheers,

Bill

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I missed out on the tax free car, and had I got 'the deal' I would have saved a small fortune!!!!
However we did the DIY some 5 and a half years ago, so had no agent fees.

Despite that the RM90 x 4/year for me and my family is a small price to pay for 'ease of mind'. At the end of the day that what it is all about for many of us.

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There is another hidden cost - because of having money tied up in a Fixed Deposit in a Malaysian bank.

My RM150,000 earns interest of 3.7% but I can get 6.8% in my British offshore bank's 12 month Fixed Deposit. That's a loss of RM4,650 a year.