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Retirement in Malaysia and MM2H Scheme

Retirement in Malaysia and MM2H Scheme

Old Aug 17th 2007, 3:36 am
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Default Re: Retirement in Malaysia and MM2H Scheme

Originally Posted by Grady View Post
Thanks for that Ameinleo

We are still awaiting approval of our visa, as our application was delayed. (see my post to Leelec).

Regards
Grady
Ops... it is so sad to hear this...

Wish you luck for your application, but if you need my help for the application, please do let me know.

By the way, I am the the government authorised MM2H representative.

Cheers!!
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Old Aug 17th 2007, 3:39 am
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Default Re: Retirement in Malaysia and MM2H Scheme

Originally Posted by Grady View Post
Hi Katongkaren

Thank you for the suggestions. We are heading to Langkawi at the end of the month to check out the facilities. Our lifestyle requirements are simple, we like beaches, nature and a laid-back atmosphere. We lived in India for a while, so the infrastructure of Langkawi will be more adequate than we are accustomed to.

Regards
Grady
If you would those environment, then you should try out Langkawi as the place is very relaxing... anf the government is starting to develop the island.. Another great option for the island will the its Free Port status where you will not have to pay taxes for things you buy in the island (such as beer!!)

Cheers!!
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Old Sep 7th 2007, 9:57 am
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Default Re: Retirement in Malaysia and MM2H Scheme

Originally Posted by leelec View Post
...........Question: You may know the answer to this and save me the bother of checking it out. I understand the UK will not tax my pensions after a certain period of time (6 months or so). I have also read under MM2H the Malaysian Government has exempted expat pensions from tax. If this is true then my pensions will be tax free after the qualifying period of absence from the UK. Does anyone know if this is for sure?
As everyone associated with the UK tax scene says, "you have to pay tax somewhere".

If the country in which you are living does not tax your UK pension then the UK will, even if there is a Double Taxation agreement with that country.

Now a question from me:

Do people retiring to places like Penang intend to see out their days in Malaysia?
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Old May 5th 2008, 12:30 pm
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Default Re: Pension Qualification and MM2H Scheme

Could somebody please help me on the Pension Qualification as to a definitive Qualification. I read on the MM2H Government site that an APPROVED Pension scheme Qualified: That is your Scheme need not be paid to you as an ex-Public Servant (e.g. the Civil Service, Military, Diplomat). There is a difference between a UK Government Pension and an APPROVED Pension. I would suspect that an "Approved" Pension is one that the UK Government has approved as being acceptable for Pension Savings and Tax Reliefs but is actually called a Private Pension Scheme. Other than being a Public Servant Pensioner ( ex-Civil Servant, Diplomat, Military, Council, etc ) the only "Government" Pension that a UK Resident would hold is the State Pension - and no UK State Pension would ever qualify under MM2H - due to the maximum number of years you can contribute to the State Scheme through your National Insurance Contributions. There is greyness in this: and some Agents say Yes to a UK Government Approved Private Pension Scheme and some say No only an ex-Public Servant Pension.
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Old May 5th 2008, 2:46 pm
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Default Re: Retirement in Malaysia and MM2H Scheme

Originally Posted by rangdaa View Post
As everyone associated with the UK tax scene says, "you have to pay tax somewhere".

If the country in which you are living does not tax your UK pension then the UK will, even if there is a Double Taxation agreement with that country.

Now a question from me:

Do people retiring to places like Penang intend to see out their days in Malaysia?
Most of the British retiring in Penang does not look back to their days in UK for the reason of weather, cost of living and so on...

Also in Penang, they will kind of enjoying the luxury live. Just imagine that 1GBP = RM6.50!! The power of foreign exchange.
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Old May 5th 2008, 3:10 pm
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Default Re: Pension Qualification and MM2H Scheme

Originally Posted by djoerk View Post
Could somebody please help me on the Pension Qualification as to a definitive Qualification. I read on the MM2H Government site that an APPROVED Pension scheme Qualified: That is your Scheme need not be paid to you as an ex-Public Servant (e.g. the Civil Service, Military, Diplomat). There is a difference between a UK Government Pension and an APPROVED Pension. I would suspect that an "Approved" Pension is one that the UK Government has approved as being acceptable for Pension Savings and Tax Reliefs but is actually called a Private Pension Scheme. Other than being a Public Servant Pensioner ( ex-Civil Servant, Diplomat, Military, Council, etc ) the only "Government" Pension that a UK Resident would hold is the State Pension - and no UK State Pension would ever qualify under MM2H - due to the maximum number of years you can contribute to the State Scheme through your National Insurance Contributions. There is greyness in this: and some Agents say Yes to a UK Government Approved Private Pension Scheme and some say No only an ex-Public Servant Pension.
The Pension scheme by the government means that your pension is payable by the government. Regardless of National or state government. Ther reason for controlling who paying for the pension is that the government will not stop paying you the pension money. Alternatively, you can just opt for the Fixed deposit placement for the visa instead.
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Old Sep 22nd 2008, 9:17 pm
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Default Re: Retirement in Malaysia and MM2H Scheme

Originally Posted by leelec View Post
Hi Folks,

Like you we are contemplating joining the MM2H scheme following early retirement (58) and moving out to Penang next year. We have visited Malaysia frequently over the past 10 years and have got to know it fairly well.

Question: You may know the answer to this and save me the bother of checking it out. I understand the UK will not tax my pensions after a certain period of time (6 months or so). I have also read under MM2H the Malaysian Government has exempted expat pensions from tax. If this is true then my pensions will be tax free after the qualifying period of absence from the UK. Does anyone know if this is for sure?
Hi - did you ever get a definitive reply to your question about receiving uk pension tax-free? I am in a similar position and would appreciate any help you could offer with this question.
Thanks
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Old Sep 23rd 2008, 3:16 am
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Default Re: Retirement in Malaysia and MM2H Scheme

Originally Posted by stanfsim View Post
Hi - did you ever get a definitive reply to your question about receiving uk pension tax-free? I am in a similar position and would appreciate any help you could offer with this question.
Thanks
Hi. If you are under MM2H program, all you money brought to Malaysia will be tax free. This is one of the benefits you will be enoying under this program.

Cheers!
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Old Sep 23rd 2008, 4:37 am
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Default Re: Retirement in Malaysia and MM2H Scheme

Originally Posted by stanfsim View Post
Hi - did you ever get a definitive reply to your question about receiving uk pension tax-free? I am in a similar position and would appreciate any help you could offer with this question.
Thanks
I may be a little out of touch with the UK State Pension amounts now, but surely UK State Pension would fall under the tax-free band so would not be taxed in the UK?
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Old Sep 23rd 2008, 7:50 pm
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Default Re: Retirement in Malaysia and MM2H Scheme

thank you for the replies so far - just to clarify..............
I'm not talking about state pension here - I'm talking about a private (company) pension. And my concern is not whether Malaysia will tax any income I bring into Malaysia (I understand that they will probably not) but rather how I persuade the good folks at Her Majesty's Inland Revenue not to deduct UK tax in the first place. This I understand they may kindly agree to do if I provide evidence that I am "tax-resident" in a country with which the UK has a double-taxation treaty (which Malaysia does). However as Malaysia doesn't appear to want to tax pension income from foreigners - how do I prove I'm "liable" for tax in a foreign country which doesn't want to tax me ?!
Any wiley 'ol foxes out there managed to solve this conundrum yet ?? I'm sure there must be !
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Old Sep 23rd 2008, 8:18 pm
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Default Re: Retirement in Malaysia and MM2H Scheme

You might think about changing your domicile.

But why not ask a tax consultant in the UK.
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Old Sep 24th 2008, 1:02 pm
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Default Re: Retirement in Malaysia and MM2H Scheme

Almost impossible to change domicile and a pension from the UK would almost certainly be a strong indicator of domicile in UK.

The issue is really not domicile it is residence - a diferent matter. You cannot avoid UK tax on UK sourced income if you are abroad - only taxation on foreign income under certain circumstances. These circumstances are changing because the UK is oe of the few which does allow exemption on foreign income for people not normally resident - a status which is painfully undefined but really means you live away and stay away for a long time. The IR booklet is fairly good on this. You should also remember that not ordinarily resident means that you dont qualify for NHS treatment in the UK. You also have to be bery careful about periods of time in the UK and especially the last year there and the first back.

As ex - Reg says wisely you need to see a tax advisor.
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Old Sep 24th 2008, 3:27 pm
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Default Re: Retirement in Malaysia and MM2H Scheme

Originally Posted by Bijilo123 View Post
The issue is really not domicile it is residence - a diferent matter.
As ex - Reg says wisely you need to see a tax advisor.
An excellent site - suggest you read it thoroughly because allot of your questions\answers will already reside in that is the following Forum which are all British MM2Hrs: http://www.my2home.info/index.php - I think I originally found it through this site. Allot of people on the Forum are very experienced in MM2H having gone through the process themselves - and know allot about life in MY.

From that site I found out the following and would be obliged if anyone can disabuse me of that which I think I know and understand!!!

I may be wrong but you can Apply for Non-Residency Status and HMRC will then allow you to pay tax in the Country of Residence abroad - where the UK has a double Taxation Agreement. These Countries with a UK double taxation agreement can be obtained from a Website.

Whilst in UK advisable to get the appropriate documentation from the HMRC in Newcastle who deal with Taxation for UK Domiciles abroad. After six months of residency in your chosen spot - the documents need to be returned to Newcastle - with, preferably, proof of residency abroad. Having MM2H will go some way to that proof - as would say rental agreements of property abroad (or proof of purchase of property abroad). Newcastle should be able to guide you on this.

When in your chosen spot you can opt to pay UK tax, or tax of country of residence - or permutations thereof.

Under MM2H (where you can not work at all in MY) your foreign income into the country will be untaxed - however any MY Income generated in MY will be taxed by MY. As a UK non-resident (for less than 3 month of the year) - your UK income should then be untaxed (pension, bank interest etc).

As a UK Domicile you should theoretically be still able to get treatment under the NHS. Residency and Domicile are different issues: never chose to give up your UK Domicile (is my advice).

You state Pension should become tax free but will be frozen for as long as you are Non-Resident in the UK. Your Private pensions should become Tax Free. HMRC will take some time in triggering all this - naturally :curse: - but make sure you fill in all the documentation and sometimes HMRC will still send you a Self Assessment Form - just complete and return as appropriate.

There are also taxation sites on the Web - by HMRC and general Taxation Issue Forums - which have taxation experts who may give advice to the forum.

There is nothing better than doing you own research - although time consuming - as then the information sticks!
All the above is my own research - as it is imperative to understand it (quite complicated in a way) - before you start shelling out money to a Taxation Expert.

You should keep\have a UK Lawyer and some of them have Tax and Property experts working in their entourages (but mostly bigger Lawyer's Firms).

Hope this helps - and as I said - if anyone thinks I have garbled up that which I found myself - PLEASE let me know.

Best wishes
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Old Sep 25th 2008, 4:53 am
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Default Re: Retirement in Malaysia and MM2H Scheme

Blimey Djoerk, you've done some homework!! Excellent info.

I know this is not really relevant to this thread, but I would add that HMRC get themselves into a real stew if you start moving from country-to-country outside the UK and, in our case, from one country with double taxation agreement to one without taxation agreement
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Old Sep 25th 2008, 7:52 am
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Default Re: Retirement in Malaysia and MM2H Scheme

Originally Posted by katongkaren View Post
Blimey Djoerk, you've done some homework!! Excellent info.
(
Boodle "sorting" is imperative when a retired (fixed income) slapper intends to escape!!

Best wishes to you in Paradise
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