Taxe for people joining MN2H

bachir123 · 2020-03-02T17:43:45+01:00

Explore Malaysia's tax regulations for MN2H participants. Find out if foreign dividends are taxed and learn about conditions for retirees.

bachir123 Member

Member since 07 February 2020

bachir123Member02 March 2020 15:43:45

Hi,

I am 58 years old but I am still actif. I am managing IT consultancy and e-commerce companies in Europe and USA from my residency in Lebanon. Because banks in Lebanon are in very bad situation and could go to bankrupt, I would like to open an account in a stable country like Malaysia. Malaysia will also become the place where I can retire when things become very difficult in Lebanon.

- My account in Malaysia will receive dividends from my foreign companies. Let's say around 100 000鈧� per year.
- I'll stay most of the time in Lebanon, not in Malaysia

Will these dividends be taxed in Malaysia when they arrive to my account?
I read that MN2H are not taxed on their foreign income, but I am wondering if there is any limit on the received amounts or other conditions.

Hope you can help.
Thanks

ladivo779 Guest

ladivo779Guest02 March 2020 21:56:25

Hopefully you will get answers from other members here about tax.

But just wanted to let you know that when I lived in Malaysia under MM2H, I had bank account with four different local banks and one foreign bank. There was nothing to stop me from opening accounts with many more banks too. I also opened new accounts in order to get preferential interest rates on fixed deposit accounts with "fresh" money and having RM250,000 or RM200,000 of whatever in most banks meant I got a personal account managers.

cinnamonape VIP Member

Member since 04 February 2018

cinnamonapeVIP Member17 March 2020 00:51:11

715

Foreign sourced income is not taxed in Malaysia for those on MM2H. It would be under the tax laws of the originating country.

Money earned on investment (though not interest on the accounts) is subject to Malaysian tax. So if you were to shift your income from a Fixed Deposit into some other investment it might be subject to Malaysian tax. That can be quite substantial for non-tax residents (those that spend less than 182-days resident in Malaysia).

carworld Member

Member since 27 August 2019

carworldMember21 March 2020 20:30:47

Why should there be limits of the amount of received dividends? As higher the amounts are, the more questions by the bank I would expect (and documents for proof of origin, normal AML procedures), that's it.

ladivo779 Guest

ladivo779Guest21 March 2020 22:34:33

Why not open an account in another Middle Eastern country? I does start to seem as if you are trying to find a way to avoid paying tax on your income.