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Are the participants entitled to any special entitlements for house purchase
All participants are allowed to purchase residential properties at more than RM1,000,000 each for most states but RM 1,000,000 for condominium or RM2,000,000 for landed (individual title) in Penang state.
Do I have to pay the yearly assessment and quit rent for my houses like the local?
Must foreigner buy new property in Malaysia only? Such as from developers or can they purchase any other property, such as from individual owners ( subsales, second hand or third hand property) ?
Participants can purchase any type of properties as they have been issued with CF (Certificate of Fitness)
Am I subjected to the property gain tax if I make a profit from selling my house?
Yes. 30% within 5 years of selling house & 5% thereafter.
Is a participant who buys a second-hand local car eligible for tax exemptions?
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.
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:
If the car is repaired and sold it will be subject to the applicable tax/duty according to the prevailing rates.
-If car is written off, taxes will be waived.
-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.
When can I sell the car, which has been given all the tax exemptions?
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.
Can I withdraw my fixed deposit any time during my stay in Malaysia?
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.
Can I place the fixed deposit in a Malaysian bank located in my country?
No. The fixed deposit account must be opened in any Malaysian bank or financial institution located in Malaysia.
Am I allowed to withdraw my fixed deposit for a few months and then topped it back later?
No. Participants are not allowed to do this, unless for an emergency purpose and with prior approval from the Ministry of Tourism
When can I withdraw my fixed deposit?
After a period of one year, the participant may withdraw his/her fixed deposit for approved expenses relating to house purchase, education for children in Malaysia and medical purposes 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.
Do kindergarten level child need a Student Visa to attend kindergarten here?
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. 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.
In the event of unforeseen death is the participant able to handover his Malaysian asset to any his beneficiaries smoothly . Does government have any restrictions on this matter?
No. Participants may transfer their property to their next on kin provided they have made a will to this effect. In the event lack of documentation, the next of kin may claim the inheritance upon proof of identity and kinship.
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?
Under this Programme, pension remitted to Malaysia is exempted from tax.