TAXATION



1. Are the MM2H participants required to pay Income Tax in Malaysia if they are drawing salary in their own country?

No. They do not have to pay tax on any offshore income.


2. What kind of taxes are the participants of MM2H normally subject to?

For MM2H participants, income tax is imposed on income earned from investments in local companies and local share market, as well as rental received in Malaysia.


3. What is the tax rate for those MM2H participants who are earning an income in Malaysia?

According to Malaysia tax law, those MM2H participants who stayed less than 182 days in Malaysia are categorised as non-resident while those who stayed more than 182 days are categorised as resident, regardless of their nationality. The tax rate for non-residents is within 10% to 26% based on the type of income earned whereas residents are subject to a progressive tax rate structure. For more information, kindly contact Inland Revenue Board of Malaysia or browse the website at http://www.hasil.gov.my/index.php.