FIXED DEPOSITS Q. Can I withdraw my fixed deposit at any time during my stay in Malaysia?
A. Participants are not allowed to withdraw their fixed deposit during the first year, unless for emergency purposes and with prior approval from the Ministry of Tourism.
Q. Can I place my fixed deposit in a Malaysian bank located in my country?
A. No. Participants must open a fixed deposit account in any Malaysian local bank or financial institution in Malaysia.
Q. Can the purchase of a house in Malaysia which is valued at more than RM250,000 be considered as having fulfilled the financial criteria for this programme?
A. No. Participants are required to fulfil the fixed deposit requirement or monthly offshore income for age 50 years and above.
Q. Am I allowed to withdraw my fixed deposit for a few months and then top it back later?
A. No. Participants are not allowed to do this, unless for emergency purposes and with prior approval from the Ministry of Tourism.
Q. When can I withdraw my fixed deposit?
A. After a period of one year, the participant may withdraw their fixed deposit for approved expenses relating to house purchase, education of children in Malaysia and medical purposes OR when they decide to terminate their stay in Malaysia by first informing the Ministry of Tourism of their intention. Participants can apply to withdraw part of their fixed deposit for emergency cases such as medical purposes, etc. with prior approval from the Ministry of Tourism.
 INVESTMENTS
Q. Can I open a restaurant, bookshop or clinic in Malaysia under this programme?
A. MM2H participants are allowed to invest and actively participate in business, subject to existing Government policies, regulations and guidelines which are in force for the relevant sectors.
EMPLOYMENT
Q. I am a qualified doctor in the US. Can I work in a Malaysian hospital or a private hospital? A. Qualified MM2H participants aged 50 and above with specialised skills and expertise that are required in the critical sectors of the economy, are allowed to work not more than 20 hours per week.
The approval to work part-time is subject to the following conditions:
a) the application is approved by the MM2H Special Committee;
b) the work contract needs to state that the MM2H participant is working part time and to attach the work schedule; and
c) total number of hours of week does not exceed 20 hours.
 EDUCATION
Q. Do kindergarden level children need a Student Visa to attend kindergarden here?
A. 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.
Q. If my children are already married and want to study in Malaysia with their spouse, do they need to pay the fixed deposit?
A. This is not necessary. They can apply for a Student Visa once they have obtained places to study in Malaysia.
 HOUSE PURCHASE
Q. Are the participants entitled to any special entitlements?
A. Foreigners are able to buy as many properties (residential and commercial) as they wish whether or not they join the Malaysia My Second Home Programme (subject to the minimun price criteria).
Q. Do I have to pay the yearly assessment and quit rent for my houses like the local?
A. Yes.
Q. In the event of unforeseen death is the participant able to hand over his Malaysian assets to any of his beneficiaries smoothly. Does the Government have any restriction on this matter?
A. Yes, provided they have a Will which indicates clearly to whom the properties are to be given. If not the next of kin of the participant will have to apply to the Government to have their properties released to them as the rightful heirs.
Q. Must foreigners buy new Malaysia property only, such as from developers, or can they purchase any property, such as from individual owners (second-hand or third-hand property)?
A. Participants can purchase any type of properties provided that it has been issued with a CF (Certificate of Fitness).
Q Does the RM250,000 foreign property ownership regulation apply to landed property only?
A. No. It also applies to other properties with strata titles such as condominiums, apartments and service apartments.
Q. If I buy a piece of land costing RM200,000 to build a house costing RM200,000, which is less than the RM250,000 regulation, am I breaking the regulation?
A. No, since the total cost of the whole house purchase is RM450,000 which is more than the RM250,000.
Q. Do I need to obtain prior approval from the Foreign Investment Committee (FIC) for the purchase and sale of my house?
A. FIC approval is no longer required for foreigners whether they are under the Programme or not.
Q. Am I subjected to property gain tax if I make a profit from selling my house?
A. No. Property gains tax has been abolished for both Malaysians and foreigners from April 2007.
 CAR PURCHASE
Q. Is a participant who buys a second-hand local car eligible for tax exemptions?
A. Second-hand cars are transacted on a willing buyer, willing seller basis and the government does not levy any sales tax and excise duty on such transactions. Therefore 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.
Q. If I had a car accident and as a result I need to change my car, do I have to pay back the tax exemptions?
A. Given the following situations:
i. If the car is repaired and sold it will be subject to the applicable tax/duty according to the prevailing rates.
ii. If the car is written off, taxes will be waived.
iii. 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 one car only.
Q. When can I sell a car which has been given all the tax exemptions?
A. 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.
 INCOME TAX
Q. What kind of taxes are the participants of this programme normally subject to?
A. Income tax is imposed on income earned from investments in local companies and the local share market. Real property gains tax has been abolished Please refer to www.hasilnet.org.my for more details on the tax structure.
Q. Is the interest on their fixed deposit taxable?
A. Interest earned by an individual from their fixed deposit account is exempted in the following situations:-
i. Period exceeding twelve months or more – any amount of interest.
ii. Period not exceeding twelve months – interest on fixed deposit account of up to RM100,000.
Q. Is income remitted from abroad taxable?
A. Before the year of assessment 2004 income remitted from abroad to Malaysia (apart from pension) was subject to tax. However, from the year of assessment 2004 all income remitted from abroad is not subject to tax.
Q. Does the participant have to submit any personal tax declaration to the Income Tax Department of Malaysia, as Malaysians have to?
A. Yes.
Q. If the participants have to submit income tax returns to the Income Tax department, are they entitled to any exemptions under the programme?
A. They will only be taxed on the income earned in Malaysia after taking into account the personal tax allowances. The income will be taxed according to a progressive tax rate structure.
Q. I am German and 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 Malaysian government. Is this correct?
A. Under this Programme, pensions remitted to Malaysia are exempted from Malaysian tax.
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