RedApe

If one has to put more into a fixed account (RM500K!!! = @US$120,000) and show that one has a vastly higher liquid asset level (RM600K = @US$145,000) to qualify then they can forgo asking if you have a government pension/monthly income stream.

These are probably not independent suggestions but will come as a package if approved.

It would clearly eliminate all but the wealthy from applying.even if one could withdraw half the deposit "with conditions". If those conditions are housing purchase then that limits one to a fairly high end of purchase.

bakedbean

And it's a pain in the arse selling it. And they tell lies about it being No Tax after 5 years. It is whatever they decide to charge you.

bakedbean

It's just a temporary long term visa not permanent residence, though some of us treat it as such. Other countries offering these temporary retirement visas chop and change their rules... and some disappear completely. I remember Singapore doing something once, albeit a rather expensive visa. That disappeared.

Macsta

An oxymoron however I believe that within the MM2H programme if the terms and conditions are changed, seldom or often, then those persons granted the visa should be bound (by both sides) by the benefits or restrictions at point of issue.

So those applicants who were granted the visa after 1st Jan 2017 should be given the two years to submit a tax free car application they were expecting.

If the authorities wish to change the rules then it should only apply to those applicants granted the visa after the announcement - no retrospective changes.

This would seem sensible and fair and only affect a defined number of visa holders.

If the authorities are willing to change rules and apply them retrospectively then this opens a whole new issue and IVVs list of new financial requirements could, theoretically, be applied to existing visa holders as well.

Yikes

InVinoVeritas

It's easy to read too much into this. When these kinds of decisions are made at government level the detail, scope and application are often not considered adequately and those drafting the new rules sometimes misconstrue the intention.

In the past, the criteria for obtaining initial MM2H have been grandfathered for renewals and hopefully this will continue to be the case.

There are few retirement programmes as attractive as MM2H and it's not so much about the fixed deposit amount but more the ease with which an expat can enjoy a tax-free life in Malaysia.

RedApe

While Malaysia doesn't tax foreign income, there are actually many countries that don't tax BOTH domestic and foreign earnings, and those that do (like the US) have substantial tax exclusions ($102,100 of foreign income for the USA) or credits for the foreign taxes assessed.

The tax-free car was a nice incentive. Odd that they are creating tax free enclaves for some MM2H beneficiaries (Forest City) while talking about removing them for others.

InVinoVeritas

I think the US tax exclusion only relates to US citizens living abroad (who may be taxed on this in their country of residence). As regards other countries, once you look at capital investment, length of visa, minimum time to be spent in-country, cost of living and quality of life then IMHO Malaysia comes out tops - and they speak English!

The tax-free car is/was nice but as BB mentions, it came with lots of restrictions.

RedApe

Of course the US tax exclusion only relates to US citizens...but I suspect those that double tax have similar exclusions. Everyone has to look at their own tax laws and that of the country they are considering...plus if they have tax-treaties, etc. It can quite complex. And if you earn money IN Malaysia you will be taxed on it...true?

I think the other factors are definitely in Malaysia's favor...though the capital investment looks like it's going up, as are the minimal prices for purchasing property. Several Central American countries look quite good though the reduced English proficiency is a barrier for many English-only speakers. Some countries allow entry into the public health system for retirees.Though Malaysia's Health services tend to be superior IMO, one largely has to pay out-of-pocket.

Yeah the car thing was nice...but was restrictive (b/c they wanted you to "invest" on buying a locally manufactured knock-off)...and most probably would get by on a recent second-hand vehicle, anyways.



There are pluses and minuses...

eCdD

I guess Putrajaya is not happy with the tax enclaves like Forest City, but don´t
mess with the mighty Sultan of Johor and his always angry son

Macsta

ssoomro, the dealer I contacted informed me that the announcement does not just mean you can "submit" the tax free application by 31st and take delivery say 3/4 months later (to buy some time) but actually the vehicle has to be registered by 31st December. which dramatically accelerates all parts of this process.

I questioned this and they said they contacted the MOF who confirmed this is accurate.

Macsta

Did anyone who purchased a new car under the locally assembled tax relief ever withdraw the RM 50,000 from their FD as allowed when the visa was issued?

Did you have to provide the bank with a release instruction from the MM2H regulators as proof?

I suppose the question is applicable for property purchase as well.

What is the process?

Thanks.

InVinoVeritas

I got RM50K out,even though the car only cost RM45K. I also got the GST back. My agent dealt with it all and they got the letter from the Ministry of Tourism to release the funds.

eCdD

It is very easy, I did it with the property purchase, but process is the same. You need to bring the receipt and the bank statement that shows the payment.

Other documents are the Letter of Intention to withdraw, Copy of MM2H visa, Copy of passport front page, the FD certificate and conditional approval letter.

Then after four working days (in theory) you will can pick up a letter from Mr. Akid that you can give to the bank so you can reduce the FD with the next renewal. This letter is in a closed envelope addressed to your bank, but you get a copy of the letter also.

I highly recommend you to get the green sheet of paper that shows the requirements and process for all kind of MM2H matters like bring in a kid, withdraw, etc. at Putrajaya.

Macsta

Many thanks IVV and eCdD.

I hadn't even heard of this "green paper MM2H information form" as I relied on my agent for direction although I visited Putrajaya at visa issue stage.

I assume this "Letter of Intention to Withdraw" is a standard template.

OK that is very useful, many thanks.

eCdD

Ask anything that starts with "Which documents I need to ..." at the office on floor 10 and you will get it

But anything that has to do with the FD withdrawel must be done on floor 1! Now as I write this, I remember that the FD stuff is not included in the green leaflet. That is another white leaflet from floor 1.