how to live in Malysia without MM2h.

Every 3 months to go neighbooring countries not to bad actually.
There is no other way if you do not want to spend 500k in the banks.
Unless if you can justify that monthly 10k you are getting this salary monthly from local company that will provide you a letter of appointment that you are working in that company and take the letter to immigration then they you have it yourself a work permit that is possible you might talk to your friends locally.
Like every country in the world same rules apply here.
You need to get PR and getting PR is need to be living here in Malaysia for some time working doing business so Immigration will assess you and every case is different.
You need to be carefull that some advices they might gave you and ask you pay money.YOU DON'T DO THAT,.
You can go personally with together all your family(this is important that they will see all of you in immigration) to Immigration to ask questions.
I know what I am talking about it I been here 16 years and I am most likely getting my PR this month (not confirmed)

Good luck

Yeah spot on, I have only been here for about 10 months, But have had to travel out 3 times, No problem for me as I used to live in Vietnam before coming to KL, so flew Air Asia (very cheap)to Saigon a couple of times, visit friends etc. and once I took a bus to Singapore.
Malaysia is a great central hub, cheap flights to many destinations, especially Asia, If you can get a work permit it becomes a fair bit easier, but fairly hard to get!.
I also think theres a NEW rule that you can get a longer Visa now (or extension) if you can prove that you are actively looking for work here?(not sure of details but some one else may know more?)
The other option may be to consider Thailand?, I believe you can get a "retirement Visa" which means you don't have to travel out and you can still earn a small local income as well, not sure of details.
Good luck

Mick

hi all.
oh well, i dont think my husband is going to be too pleased, am having a hard time convincing to imigrate as it is! was hoping when we visit in Nov, and he see's how nice it is, he might be convinced and start the ball rolling - its going to be a hard pill to swallow when i tell him we can retire in KL/Penang but we have to leave every 3 months then return. Im Going to start to research thailand now, thanks mick. My worry now is that when we visit in Nov, im going to like Kl soo much, and its going to be out of my reach. .. thanks mike for the avice

besides thailand even philippines .......take a peek

Best to keep an open mind in Asia, take advantage of the situation, try a different destination every 3 months, you might find your favorite place or you may decide you like Malaysia best, by that time you may have figured out how to stay longer!!!

Mick

Malaysia My Second Home Program (MM2H)


About Malaysia

Malaysia situated in the South East Asia and is a sparkling, lively mixture of races and religions, where Pakistanis, Malays, Indians, Chinese and many other ethnic groups live together in peace and harmony. The multiculturalism that exists in Malaysia has made it a great place and home to many colorful festivals.

Based on its diversification in culture, geographically it consists of 11 states and 2 federal territories (Kuala Lumpur and Putrajaya). There are many attraction points of Malaysia, one of which is its extreme contrasts which further puts in to this theme of 'diversity'. Skyscrapers followed by wooden houses built on stilts, while five-star hotels sit just meters away from ancient reefs. Rough mountains, with forest life, nice highland hideaways rolling down to sandy beaches with humid and rich mangroves.


About MM2H Program

The MM2H commonly know as Malaysia My Second Home program is an attractive international residency scheme endorsed by Malaysian Government. It permits foreigners to live in the country on a long term visa of up to 10 years (Renewable). To qualify for this program, applicants must meet certain criteria listed below. Once successful, the applicants are entitled to enter the country on unrestricted basis as many times as one wishes to and also benefit from other incentives aimed at making his/her stay in Malaysia more convenient.

For More Details :  info@sunenterprises.ca

Under MM2H program isnt really a burden actually.You only have to place RM300,000 in any bank in Malaysia and after a year you may withdraw the amount up to RM150,000,say,for the purpose of purchasing a house.The remaining RM150,000 anyway have to be kept in the bank until u decide to quit the program.

Basically you join MM2H or risk visa runs. Some get away with it for 20 years. Some get thrown out. Pot luck.

But as I said before why are there so many people (usually youngsters but some are older) who think Malaysia "must" allow them in as an Asian country! A Malaysian has to get a visa in advance to even visit the UK as a tourist.

I can't go into Australia and demand the right to stay. Maybe I could point out at immigration they are all ex British criminals and I am superior as British lol while wearing a white hat and socks and pretend I am the white raj circa 1930s style!

No need to advise me if that will work! Should do those damned colonial traitors (like the traitors from the Americas they should hand over 10% of their economy to the Brits every year as it was ours! We demand entry!)

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i thing u can get business visa or do the Labuan company visa

What do you mean by Labuan Company Visa?  Is the requirement different to Peninsular company? In fact anyone know if company details are different for Borneo to Peninsular?

Yes, Manxmonkey - Labuan companies are offshore incorporations so different rules. Website malaysiabizadvisory explains differences.

I'd recommend if you can't qualify for MM2H you look elsewhere. I love living in Malaysia, and am on spousal visa, so I don't have any issues. But relying on visa runs as others have suggested is risky anymore. People have done it for decades in Malaysia with no issues until the past few years. First Thailand announced that visa runs were no longer going to be renewed, and shortly after Malaysia started questioning multiple visa runs. I've seen people receive only 10 days to sort out their long term visa or prepare to leave, so unless you have a long term plan that involves getting a visa I wouldn't recommend the move.

If Malaysia is too expensive (COL is quite high nowadays too) then take a look at the retirement visa for Sri Lanka.

I've been thinking about this lately. Right now my plan is to apply for the MM2H at the end of this year and live 6 months in MY next year.

The main reason I want it is to establish (tax residency), but that would follow automatically after spending 182+ days in MY, whether or not I'm on a MM2H or a tourist visa correct?

I don't intent to spend more days than that in MY anyways. The rest of the time I would be in Indonesia and Thailand. So whether I have a MM2H visa or not I would be out of the country for 1 month at a time every 2 month anyways.

What do you guys think is a MM2H worth it for me? And:
- Would I be considered a resident as well for tax purposes if I spend 182+ days/year on a tourist visa in MY?
- Is foreign income still exempted from tax while on a tourist visa?
- Is it possible to get a personal Malaysian bank account on a tourist visa?

As far as I understand it, without any formal visa in Malaysia you would not be able to get a double taxation treaty signed which would give you the benefits you talk about.

Gravitas wrote:

As far as I understand it, without any formal visa in Malaysia you would not be able to get a double taxation treaty signed which would give you the benefits you talk about.

Isn't a double taxation treaty something between countries and not its citizens?

I mean neither Japan or Indonesia will consider me a resident for tax purposes if I don't stay there more than half the year, however Malay should if I stay there 182+ days.

It's just that I'd like to pay out dividends in a 0% country (e.g. MY) and not worry about other countries trying to claim dividends. A tax report would help a lot in that case .

From what I gathered so far is that while I would be considered a tax resident in Malaysia if I stay more than 182+ days on the MM2H visa there would be no proof as no tax return can be filled since the tax authority will only grant income tax registration for people liable to income tax (which I wouldn't be).

So the way I see it MM2H and a tourist visa don't differ that much in my scenario?

They are completely different situations. When on a tourist visa you are still technically a resident in another country. Tax authorities only react to DTAs - http://www.hasil.gov.my/bt_goindex.php? … p;bt_lgv=2

Dividends would follow the rules in the country of incorporation. Off-shore income is taxed at 0% under MM2H but dividends from Malaysian companies would be taxed on normal local rates. (So would any other income generated in Malaysia, such as rents from properties owned here). Labuan companies are often used to channel corporate earnings etc.

Still need a visa and DTA to benefit from resident tax status in Malaysia

You wont be able to open a bank account with a  tourist visa

You wont be able to register with LHDN ( Inland Revenue Board) without a proper visa so you won't be considered as a tax resident

Ofcourse there is a difference between MM2H and a tourist visa . With a tourist visa you are only allowed to travel and not get all the benefits that you want

Thanks guys for the replies!

Ok clear on the bank account (not the biggest issue for me).

But the other thing I mentioned and which basically every agent/tax advisor confirmed:

while I would be considered a tax resident in Malaysia if I stay more than 182+ days on the MM2H visa there would be no proof as no tax return can be filled since the tax authority will only grant income tax registration for people liable to income tax (which I wouldn't be).

So in that sense there would be no difference between a MM2H visa and a tourist visa? Or are there people on a MM2H visa who filed a tax report without being liable for income tax?

They are completely different situations. When on a tourist visa you are still technically a resident in another country. Tax authorities only react to DTAs - http://www.hasil.gov.my/bt_goindex.php? … p;bt_lgv=2

I agree that I might not be a resident in Malaysia, but I would highly doubt that Indonesia or Japan would consider me a resident either since I only spent a short period there on a tourist visa.

Dividends would follow the rules in the country of incorporation. Off-shore income is taxed at 0% under MM2H but dividends from Malaysian companies would be taxed on normal local rates. (So would any other income generated in Malaysia, such as rents from properties owned here). Labuan companies are often used to channel corporate earnings etc.

My country of incorporation has 0% corporate income tax and 0% dividend tax, however I'm no resident of that country so the rate for dividend tax is still dependent on my country of residence (the whole reason why I'm picking Malaysia to stay ).

You would not be a resident or tax resident in Malaysia either.  You need to establish a legal residence in a country - it is not about just number of days spent there as a tourist. Tax and immigration speak different languages.

The benefit of being on MM2H is depending on the DTA, income tax paid in other countries may be refunded.

People get residence certificates when on MM2H if here for 182 days.

Tourists have to leave the country every 30/90 days. Latest rules if leaving between 80-90 days then 7 days outside Malaysia required.

If a person only has a tourist stamp in their passport they are not a resident, regardless of how may days they spend in the country. They have no legal right of abode in Malaysia which, when they do have this immigration status, is useful for tax purposes.

So you can "live" in Malaysia but not benefit from the tax breaks (DTA) that Malaysia offers.

Do remember also you more than likely have a domicile somewhere that has tax rules that apply to you..... unless you have established legal residency in another country. (e.g, US and other nationals are permanently liable for taxes in their country of domicile). New global tax reporting comes into force in late 2018.

Thx again Gravitas. At the moment I'm a tax resident elsewhere (not a US citizen), hence why I'd like to move to a better tax climate .

The benefit of being on MM2H is depending on the DTA, income tax paid in other countries may be refunded.

People get residence certificates when on MM2H if here for 182 days.

So refunds I don't have to worry about I pay 0% corporate tax, only my dividend tax now is quite high.

But the last part is the most important: "people get residence certificates when on MM2H for 182 days", do you know this for a fact to be true, because all the agents told me that in theory you should, but they weren't sure if the government would issue you any proof.

It's a fact.

That is how foreigners get their refunds under DTAs. They need the Certificate of Residence every year. This is usually done by walking in to a convenient tax office with your MM2H visa and the passport is then checked and a certificate issued on the spot.

http://www.hasil.gov.my/bt_goindex.php? … p;bt_lgv=2

They also issue several annual certificates at one time if necessary when claiming backdated tax refunds. National DTA application forms vary, but some also need to be endorsed as well as presenting the Certificate of Residence.

If you are still thinking of it - try the Sarawak My Second Home program. RM10,000/couple income...no liquid asset requirement, and no fixed deposit in one of the options. You do need to find a local (Sarawak citizen or PR) to sponsor you.

Don't like Sarawak...the visa allows you to rent or purchase property anywhere you wish in Malaysia...or travel outside and return for short term stays.