bakedbean

What improvements could be made?

I'm sure I could think of a lot of things, but two things stick out for me personally.

1. Back in the old days, you used to be able to get the MM2H visa and renew at Butterworth Immigration. These days you have to go all the way down to Putrajaya outside KL.

As the MM2H visa is mainly for retirees, this doesn't make sense to me. My plan is to stay here into late retirement years but the thought of having to travel that distance (Penang to Putrajaya) when I am maybe 80 years old, 90 years old? is somewhat daunting.

So I would say, let local Immigration offices deal with MM2H visas.

2. I mentioned in another topic something that is not mentioned on the MM2H government site currently. Most couples, husbands and wives, generally get a MM2H visa and maybe the husband is the main holder, and the wife is the dependant. This means that, should the husband die first, the wife will have to reapply for the visa once again. It doesn't automatically switch to her being the Main Holder.

I think this could be changed. If the Main Holder dies, the Dependant should automatically become the Main Holder.

bakedbean

3. The MM2H car, if there is one. If this is in the Main Holder's name, then if the Main Holder dies the car should switch to the Dependant with no customs or tax issues.

As I understand it, this is not the case currently.

InVinoVeritas

Yes the tax-free car is a weak point of the MM2H programme. It seems to take an inordinately long time to get the authorisation. I ordered a car in August and I still haven't been given a date for delivery. Honda blames the MM2H system and I assume they are correct because they warned me at the beginning that it would take a very long time. As someone who would normally change car every couple of years the system really obliges me to keep the same car forever which can't be good for the Malaysian economy.

bakedbean

Yes you are somewhat stuck with it. We got a Honda MM2H car and , on the face of it, it is a massive saving....but what if circumstances change?

And speaking from experience, our circumstances have changed in ways we could not have planned (life is like that) and wondering now if we did the right thing. Time will tell.

Stuurman

The tax free car isn't as tax free as it seems. If you want to sell the car you have to (partly) pay the tax. How much is completely up the the tax-officer who you encounter, there is no formal deduction system.
Having one with clearly written what is owed when selling the car would be an improvement.

Stuurman

What happens when the main visa holder passes away hasn't been thought trough very well in the program. Apparently under Malaysia law assets of the main visa holder get frozen and if the dependent is a woman she gets appointed a caretaker. In the apartment building I used to live there was a couple who bought together a property, unfortunately the husband passed away and it took the wife 7(!) years to have the property transferred in her name. Of course after that a new lock in of 3 years started and she has to wait another two if she wants to sell without being hit with 30% capital gain tax.

Gunnar45

Stuurman,
I would assume that the procedures would be speedier with a proper will in place?
Regarding taxes, I faced similar problem in France when my first wife passed away.
As the gains tax was lowered on a falling scale with time, I was hit with the full tax on the half which I inherited. (But first they tried to take it out on the full amount)

Stuurman

Hi Gunnar, I don't know if they had a proper will. I will ask her next time I see her.

bakedbean

Might be speedier perhaps, but probate for wills is, I have been told, quite slow.... maybe six months.

For Malaysian property and assets (but NOT a car) you can set up a Trust. I am told that it goes through in maximum 10 days. Obviously I haven't tested this.