HOUSE PURCHASE:

Each participant is allowed to purchase two residential houses at a minimum prices of above RM150,000 each depending on the location of the property. Generally, the minimum price for the purchase of residential houses in Malaysia ias set at:

- Above RM350,000 each for certain areas in Sarawak

- Above RM250,000 each for Penang, Malacca and Johor

- Above RM150,000 for other states in Malaysia.

Participants may need to watch out for land which is strictly allocated as Malay reserve land, units that are reserved for Bumiputera quota and agriculture land developed on the basis of the homestead concept.

Any proposed acquisition under MM2H must be directly applied to the tourism ministry for onwards notification to Foreign Investment Committee (FIC) by the ministry.

CAR PURCHASE:

Each participant is allowed to bring in one of his / her own personal car or purchase locally assembled car without the need to pay import duty, excise duty and sales tax.

Personal car refers to a car purchased and owned by the participant before joining the MM2H programme.

Participants must apply for prior approval within the time period given to the finance ministry and ministry of international trade and industry (MITI) before bringing in a personal car from their country of residence or buying a locally assembled car in Malaysia within one year from the date of their MM2H visa endorsement.

If participants wish to bring in a second vehicle with him / her to Malaysia, there is no tax / duty exemption on the second car. While he could apply for normal approval permit from the MITI, participants would be subject to import and excise duty based on the market valuation of the participants' second vehicles to be assessed by the Customs.

DOMESTIC HELPER:

Each applicant is allowed to apply for one maid subject to the prevailing guidelines of Malaysia's immigration department.

Participants are required to fill in the foreign maid application form and submit to immigration department together with a copy of the participants' MM2H visa passport for verification.

Participants who wish to bring a foreign maid from a country other than his country of origin or any foreign maid will be required to submit an application to the immigration department's director general for further assessment, reevaluation and approval.

All foreign maids will be required to undergo medical examination in Malaysia. The medical report must be submitted to the immgration department together with her work permit application.

EDUCATION:

Applicants are allowed to bring their children who are under 18 years old and not married as their dependants under the MM2H programme. Children who intend to continue their schooling in Malaysia are required to apply for student pass and should be insured throughout their stay under MM2H.

Check the following before registration with the private colleges or universities:-

- Courses must be accredited by the Malaysian Accreditation Board

- The insitutions must be registered with the ministry of higher education in Malaysia.

- The local private higher education institution (PHEI) you have selected is registered with the ministry of home affairs.

- Students from China need to ensure the PHEI has been registered by the China Embassy in Malaysia.

To enroll into the particular insitution, the following criteria have to be fulfilled:-

- Academic qualifications are required.

- If qualifications comply, the insitution will issue a letter of offer to study in the institution

- Application for student visa is essential for submission at the immigration department.

- Students are not permitted to undertake employment in Malaysia.

PERSONAL TAX:

Participants are bound by the policies, systems and regulations of taxes of Malaysia. They do not have examption qualification as granted to diplomatic missions in Malaysia.

However, ta exemption is given to pension or overseas source income remitted into Malaysia. Participants are required to obtain the relevant endorsement from the respective authorities in their respective countries of origin as to the total amount of yearly pension or overseas source income received.

A copy of this letter has to be submitted in their application for tax exemption. On the other hand, any income earned in Malaysia is subjected to Malaysian income tax each year.

The basis period for tax reporting is from 1 January to 31 December. Income tax reports are due and payable on 30 April of the following year.

Type of incomes subject to tax for the MM2H visa holders would include:

• Business, trade or profession.

• Dividends, interest and discounts.

• Rents and royalties.

• Special classes of income. For example, technical advice, assistance or services rendered in connection with technical management/administration of any scientific, technical/commercial undertaking, venture or scheme.

Rates of tax for resident individuals for the year of assessment 2008 range between 0 and 28%. Non- resident individual is taxed at a flat rate of 28% for income earned from Malaysia except for the following income source:-

• Royalty: 10%.

• Special classes of income such as rental of moveable property and technical or management services fees: 10%.

• Interest and public entertainer’s professional income: 15%.

An individual is regarded as tax resident if he meets any of the following:-

• In Malaysia for at least 182 days in a calendar year.

• In Malaysia for less than 182 days during the year (“shorter period”) but that period is linked to a period of physical presence of 182 or more “consecutive” days in the following or preceding year (“longer period”).

Temporary absences from Malaysia for certain specified reasons during the shorter or longer period are counted as part of the consecutive days, provided that the individual is in Malaysia before and after each temporary absence.

• In Malaysia for 90 days or more during the year and in any three of the four immediately preceding years, he was in Malaysia for at least 90 days or was resident in Malaysia;

• Resident for the year immediately following that year and for each of the three immediately preceding years.

PERSONAL BELONGINGS:

Participants could import the household and personal belongings free from custom duty and taxes. However, these goods must have been used for a period of not less than three months.

These goods will not be disposed of within three months after date of importation into Malaysia. Some examples of the personal belonging include:

• Crockery and cutlery.
• Furniture.

• Beddings or curtains.

• Pictures or wall paintings.

• Electrical kitchens such as kettles.

• Garden appliances, including lawn movers.
• Electronics appliances such as televisions, radios or DVDs.

BRINGING IN PETS:

Participants who wish to bring in their house pets such as cats, dogs, birds and rabbits must apply for Import permit via Malaysia’s veterinary service department.

They would be required to submit the current vaccination record for dogs and cats. However, importation of restricted breed of dogs such as bull mastiff, bull terrier, doberman, German sheppard, Alsatian, rottweiler and Perro-de-presa-canario (also known as canary dog) would require special approval from the department.

All animals and birds imported to Malaysia will be subject to a quarantine period between seven and 30 days.

Participants are also required to obtain a veterinary health certificate for pet from the government veterinarian of the origin country within seven days of export.

LATEST FINANCIAL INFORMATION:

a)  Aged Below 50 years old :
After a period of one year, the participant can withdraw up to RM150k for approved expenses relating to house purchase, education for children in Malaysia and medical purposes.
Participant must maintain a minimum balance of RM150k from second year onwards and throughout stay in Malaysia under this programme.
b)  Aged 50 years and above :
After a period of one year, participant who fulfills the fixed deposit criterion of RM150k can withdraw up to RM50k for approved expenses relating to house purchase, education for children in Malaysia and medical purposes.
Participant must maintain a minimum balance of RM100k from the second year onwards and throughout his/her stay in Malaysia under this programme
c)  For All Ages:
Approved participants who have purchased and owned property which were bought at RM1 million and above in Malaysia may comply with the basic fixed deposit requirement of RM 100k or RM150k. This amount may not be withdrawn until the participant decides to terminate his/her participation in MM2H programme.