Q&A. Fixed Deposit. Education. House Purchase

Transcription

1 01 Q&A Fixed Deposit Can I withdraw my fixed deposit any time during my stay in Malaysia? Participants must maintain a minimum balance of RM150,000 and RM100,000 in their fixed deposit accounts for applicants below 50 years old and above 50 years old respectively, from the second year onwards and throughout their stay in Malaysia under the MM2H programme. Can I place the fixed deposit in a Malaysian bank located in my country? No. The fixed deposit account must be opened in any bank or financial institution located in Malaysia. Can the purchase of a house in Malaysia which is valued at more than RM500,000 be considered as having fulfilled the financial criteria for this programme? No. Participants are required to fulfill the fixed deposit requirement and monthly off-shore income for those aged below or above 50 years. Am I allowed to withdraw my fixed deposit for a few months and then redeposit it back later? No. Participants are required to place their fixed deposits on annual auto renewal basis. When can I withdraw my fixed deposit? After a period of one year, the participant may withdraw his/her fixed deposit for approved expenses relating to house purchase, education for children in Malaysia and medical purposes OR when he/she decides to terminate his/her stay in Malaysia by first informing the Ministry of Tourism of his/her intention at Malaysia My Second Home Centre. Participants can apply to withdraw part of their fixed deposit for emergency cases such as medical purposes, etc. with prior approval from the Ministry of Tourism. Education Do kindergarten level children need a Student Visa to attend kindergarten here? Children below the school going age (that is 7 years old) are not required to apply for a Student Visa. They need only apply for a Social Visit Visa. If my children are already married and want to study in Malaysia with their husband, do they need to pay the fixed deposit? Not necessary. They can apply for a Student Visa once they are admitted into a course of study at any college or university in Malaysia. House Purchase Do participants have any special entitlements? All participants are allowed to purchase residential properties at the minimum purchase price for foreigners established by the respective state governments of Malaysia. The current minimum price (October 2013) is RM1,000,000 for most states. The current Real Property Gains Tax rate set by the Government of Malaysia. BUDGET 2014 Year Individuals (non citizens) (%) 1st 30% 2nd 30% 3rd 30% 4th 30% 5th 30% 6th and subsequent 5%

2 02 Can I purchase a house for residential purpose and a shop lot to be rented out? No, you are only allowed to purchase residential properties. Do I have to pay the yearly assessment and quit rent for my houses, like the locals? Yes. Must foreigners buy new Malaysian property only, such as from developers, or can they purchase any property, such as from individual owners (second hand or third hand property)? Participants can purchase any type of housing properties provided that they have been issued with CF (Certificate of Fitness). Do I need to obtain prior approval from the Foreign Investment Committee (FIC) for the purchase and sale of my house? Participants under this programme are not required to obtain prior approval for the purchase and sale of houses from FIC. However, they must write to the Ministry of Tourism giving details of the house (location as well as price) so that a letter can be issued to them certifying that they are eligible to purchase the said property under this programme. In addition, they are required to send a copy of the approval letter obtained from the respective State Authority that has authorised the purchase or sale of the property concerned to FIC for information and record. Can I keep pets in my condominium? The By-laws of the Strata Title Act state that a parcel proprietor is not allowed keeping any animal in his parcel or on the common property that may cause annoyance to any other proprietor. Car Purchase Is a participant who buys a second-hand local car eligible for tax exemptions? Second-hand cars are transacted on a willing-buyer-willing-seller basis and the government does not levy any sales tax and excise duty on such transactions. As such, tax exemptions do not arise. If I have a car accident and as a result I need to change the car, do I have to pay back the tax exemptions? Given the following situations: i. If the car is repaired and sold, it will be subject to the applicable tax/duty according to the prevailing rates. ii. If car is written off, taxes will be waived. iii. If the participant wishes to buy another car, their application will be processed on the merit of each case. Under normal circumstances, a participant of this programme is allowed tax exemption for a car on a one-time basis. When can I sell the car, which has been given all tax exemptions? Cars that have been exempted from taxes and duties under this programme can be sold or its ownership transferred provided the prevailing taxes and duties on the car have been paid prior to the transaction. However, for imported cars the condition stipulated in the AP should be complied with before any sale or transfer can be permitted. What are the benefits of purchasing a car versus importing a personal car? Purchase A Car: The MM2H participant may purchase one new motorcar made or assembled in Malaysia. He/ she will be exempted from paying excise duty and sales tax on the new motorcar. He/ she must submit an application to the Ministry of Finance within a period of one year from the endorsement date of the MM2H Social Visit Pass. Import A Personal Car: The MM2H participant may import one motorcar, which belongs to him/ her country of citizenship or where he/ she last resided. He/ she will be exempted from paying import duty, excise duty and sales tax on the imported motorcar. He/ she must submit an application to the Ministry of Finance within a period of six months from the endorsement date of MM2H Social Visit Pass.

3 03 MALAYSIA MY SECOND HOME (MM2H) The Ministry of Tourism Malaysia cordially invites eligible foreign citizens to long-stay in Malaysia under the Malaysia My Second Home (MM2H) programme. Successful applicants will be granted a 10-year Social Visit Pass with Multiple Entry Visa and it is renewable for as long as they comply with the existing rules and regulations of the programme and laws of the country. ELIGIBILITY It is open to citizens of countries recognised by Malaysia regardless of race, religion, gender or age. This programme also allows participants to bring with them their spouse, unmarried children below the age of 21 and parents above 60 years old as dependants. TERMS AND CONDITIONS UPON APPLICATION 1. Financial Requirement (a) Applicants aged 50 years and above: Liquid assets of RM350,000 (USD112,000) + monthly offshore income of RM10,000 (USD3,200). (b) Applicants below 50 years: Liquid assets of RM500,000 (USD160,000) + monthly offshore income of RM10,000 (USD3,200). (c) To provide latest 3 months certified financial proof or statement with each month s credit balance of RM500,000 or RM350,000 respectively and offshore income of RM10,000 per month. Applicants who purchased and owns a property worth RM1million which is fully paid, grant and land title have been issued, may comply with the lower basic fixed deposit of RM150,000 (below 50 years old) and RM100,000 (above 50 years old). 2. Submission of a Letter of Good Conduct. 3. Resume/ CV. 4. Application Forms with a cover letter. TERMS AND CONDITIONS UPON APPROVAL Successful applicants will be issued a Conditional Approval Letter where they are required to comply with the following requirements within a 6-month period: 1. Open a Fixed Deposit Account in Malaysia. Applicants aged 50 years and above: RM150,000 (USD48,000). Applicants below 50 years: RM300,000 (USD96,000). 2. Purchase a Health Insurance. 3. Pay the required visa fee. 4. Health or medical check-up.

4 04 INCENTIVES Car Purchase Successful applicants are allowed to purchase one new motorcar made or assembled in Malaysia without the need to pay excise duty and sales tax, within one (1) year from the endorsement date of MM2H Social Visit Pass. Import Personal Car Applicant may import one personal motorcar without paying import duty and excise duty and sales tax, within a period of six (6) months from the endorsement date of the MM2H Social Visit Pass. Tax-Free Income All income brought into Malaysia is tax-free. Domestic Helper MM2H participants are allowed to employ one domestic helper. House Purchase Participants are allowed to purchase more than one residential property which must be above the minimum ceiling price set by the respective state governments where the property is located, which is generally RM1,000,000 (USD 320,000) for each property. Education Children below 18 years old are free to study at any education institutions (kindergarten to international schools). Children above 18 years old who wish to study at tertiary educational institutions (private colleges and universities) are required to terminate their MM2H Social Visit Pass and apply for a Student Pass instead. Working Part Time Applicants under the MM2H Programme are not allowed to work/ be employed while staying in Malaysia without the MM2H Centre s permission; except on a part time basis. Note: All the above is subject to the prevailing guidelines, rules and regulations in Malaysia.

5 05 MM2H AUTHORISED COMPANY LEISURE LIVING (MM2H) SDN BHD (Company No M License No. MM2H 0082) is an authorised company by the Ministry of Tourism to provide services to Malaysia My Second Home applicants. At Leisure Living, our primary goal is to provide accurate and professional hassle-free service to our clients. We also ensure a 100% money back guarantee should your application be rejected by the immigration department. We offer the following basic services with the following charges: PREMIUM PACKAGE This is to assist participants who are relocating to Malaysia. Prepare the application with the required documents for submission. Sign a PERSONAL BOND with the Government of Malaysia to guarantee the good conduct of the participants throughout their stay in Malaysia under the programme. Provide updates and co-ordinate services between the Immigration Department and the participants regarding the application status. Providing consultancy or advice, as the need arises, regarding the latest information related to the MM2H programme. Arrange for transportation and accommodation for successful applicants. (Cost of transportation and accommodation of participants.) Assist successful applicants to (excludes transportation): - Open a fixed deposit account. - Arrange for insurance coverage. - Arrange for the required medical check-up. - Arrange to complete the programme application and to have the passport stamped with the MM2H sticker by attending to the Immigration Department or MM2H Centre. Provide on going updates and information on incentives which participants are entitled to. FEE*: USD 3,175 or RM10,000 (Based on current exchange rate of 3.15) * Additional fees apply should the MM2H application documents need to be translated into English or certified by a Notary Public. PAYMENT TERM 40% down payment upon submission. 60% upon receiving the conditional approval letter.

6 06 APPLICATION PROCEDURE STEP 1: MEETING MM2H REQUIREMENTS Ensure that you are eligible to join the Malaysia My Second Home Programme and appoint Leisure Living (MM2H) Sdn Bhd to handle your application by providing a letter of appointment. STEP 2: PREPARING MM2H APPLICATION DOCUMENTS Prepare the following documents: (a) Letter of application (cover letter) is to be written in English and addressed to: Malaysia My Second Home Centre. Ministry of Tourism, Malaysia. Level 1, No.2, Tower 1, Jalan P5 / 6, Presint 5, Wilayah Persekutuan Putrajaya, Malaysia. The content of the letter should include: - Personal background, as well as your intention to join this programme. - Persons whom you wish to come with (single or with family members). - Briefly explain how you will support your stay in Malaysia (financial capabilities). (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Resume stating Academic qualification, working experience, etc. One (1) copy of MM2H Application Form. Three (3) copies of IM.12 Form - Social Visit Pass. Six (6) coloured passport-sized photographs. Photocopies of passport/ travel documents (all-pages) and certified on the front page with personal details (two (2) sets). - Copy of the previous passport is required if applicant has renewed passport within the last twelve (12) months. Letter of Good Conduct from main applicant s relevant government agency (Police Station, etc). Self declaration on each applicant s health conditions - Form RBI. Certified copy of Marriage Certificate (if accompanied by spouse). Certified copy of Birth Certificate (if accompanied by children). Certified copy of latest three (3) months bank statement/ other related financial documents to indicate the financial capability to support stay in Malaysia. At least three (3) months certified copies of pay slip/ pension. * Item (i) - (j) are also required if accompanied by spouse and children below 18 years old (whom are not married) and are regarded as dependant(s) of the applicant. * Certified means that the photocopy is stamped certified true copy and signed by notary public, government official, solicitor, commissioner of oaths, embassy/ high commission or justice of peace. (m) Financial Authorisation Letter; to verify the financial documents with the relevant financial institutions. Kindly provide the relevant financial institutions name in english, international telephone to contact and the authorize bankers who do authentication, if any.

7 07 STEP 3: MAILING OF MM2H APPLICATION DOCUMENTS Send the letter of appointment, letter of application and all the documents as stated in STEP 2 (via courier service is recommended) to the following address: LEISURE LIVING (MM2H) SDN. BHD. B-3A-3A, Level 3A, Block B, Sky One City, Jalan USJ 25 / 1A Subang Jaya, Selangor Darul Ehsan, Malaysia. Tel: Fax: mark.tan@kingsley.edu.my * Note: It is advisable that you drop us a note by fax or prior to sending. STEP 4: REMITTING PAYMENT Make the payment by SWIFT/ Telegraphic Transfer or other means to the following bank account: Payment to: LEISURE LIVING (MM2H) SDN. BHD. Bank: CIMB BANK BERHAD CIMB Bank Phone No.: CIMB Bank Address: USJ 9, Subang Jaya, 31-1, Jalan USJ 9/5S, UEP Subang Jaya, Selangor Darul Ehsan Swift Code: CIBBMYKL Account No: STEP 5: CONDITIONAL APPROVAL OF MM2H The issuance of the conditional approval letter by the Malaysian Immigration Department is estimated to take around 10 weeks, if the terms and conditions of application are fulfilled. STEP 6: UPON APPROVAL OF MM2H Come to Malaysia within six (6) months after the issuance of the conditional approval letter. (a) Open the required fixed deposit account in any bank in Malaysia. (b) Purchase the Medical Insurance from any insurance company in Malaysia. (c) Perform the required medical check up. STEP 7: COLLECTION OF MM2H Social Visa Pass Personally visit and collect the Malaysia My Second Home Visa at the Immigration Department. The Visa will be given based on the validity of the passport (maximum ten (10) years).

8 08 TO: LEISURE LIVING (MM2H) SDN. BHD. Letter of Appointment I, the undersigned, with the following particulars, hereby appoint Leisure Living (MM2H) Sdn. Bhd., an authorised company licensed by the Ministry of Tourism, Malaysia to handle my application for Malaysia My Second Home (MM2H) Programme. I further undertake to give all the cooperation needed for the successful application and pay the necessary agreed charges as provided for under the relevant package directly to Leisure Living (MM2H) Sdn. Bhd. only. NAME: ADDRESS: CITY/ TOWN: POSTCODE/ ZIP CODE: COUNTRY: TEL: FAX: MOBILE: CHARGES: USD RM SIGNATURE: PREMIUM PACKAGE ,000* PASSPORT NO: TOTAL * subject to the prevailing currency rates at the point of application. Note: - Tick wherever applicable. - Full name according to the passport. DATE: For Office Use Only MA Code No. ID No.