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We have been asked this question frequently. We are glad to summarize the comparison of a 2-year Work Visa (DP10) with the Malaysia My Second Home(MM2H) Visa as follows:
Income Tax for Malaysia My Second Home(MM2H) Visa participants’ income from the company (if any) as director’s fee, salary and allowances are also subject to personal tax. The income amount may vary from nil to any amount, either depending on the Company’ performance or declaration by the shareholders as advised by the taxation professional.
For work visa holders, they must pay personal income tax if their declared monthly salary is above a minimum of MYR 5,000 as required by the Malaysian Immigration. These yearly tax receipts must be presented during the application for renewal.
For all foreigners including Malaysia My Second Home(MM2H) visa holders, personal income tax will be 0% to 26% if Malaysia My Second Home(MM2H) holders stay more than 182 days, or a flat of 26% in the case of fewer days.
The renewal process is easy for Malaysia My Second Home(MM2H) visa holders as compared to that of the 2-year work visa. The 2-year visa requires compliance to the latest requirements by the Immigration Department and other Ministries, which may have changed during the 2 years, as well as payment of renewal fees charged by the Agent.
Work Visa participants also need to maintain and ensure their company remains active in operation and profitability at all times. The Immigration and other Ministries have the right to reject your 2-year work visa if your company is not active, profitable, and if the record and licenses of the company are not updated with the respective Ministries.
Since February 2009, Malaysia My Second Home(MM2H) visa holders have been allowed to operate their own 100% foreign owned business, as long as they comply with domestic regulations such as, required licenses. Please refer to the guide for licensing of different types of business at www.malaysiabizadvisory.com.
Malaysia My Second Home(MM2H) Visa holders need to comply with all regulations and update records as required by the Ministries. However, their visa is not subject to scrutiny for renewal.
Malaysia My Second Home(MM2H) holders with young children under the age of 18 can relax, knowing that their children can study in international schools without needing to obtain a yearly student visa. MM2H visas can be renewed and valid for the next 10 years.
Malaysia My Second Home(MM2H) visa holders can bring their parents above the age of 60 as their dependents to stay with them during the 10 years. Work visa holders are not allowed this benefit.
As Malaysia My Second Home(MM2H) visa holders, they can enjoy a higher margin of bank financing for their property and car purchase, as compared to work visa holders.
A tax-free car under the Malaysia My Second Home(MM2H) program is also not available for 2-year work visa holders. This would also mean that the latter would need to spend more if they need a car to move around in Malaysia.
The many benefits under the Malaysia My Second Home(MM2H) program provide true cost savings and reduced stress, and are not at all available to work visa holders.
The cost difference between the two visas is the Fixed Deposit, which is required by the Malaysia My Second Home(MM2H) program. Depending on your financial ability and needs, the decision is yours to make!
But, we still say that “The Malaysia My Second Home(MM2H) visa is the best visa for foreigners to retire and live in Malaysia!”
For retirees, the Malaysia My Second Home(MM2H) visa is no doubt the best visa, as this group of golden agers wants to free themselves from the hassle of complying with any regulations and taxes.
Upon approval, Malaysia My Second Home(MM2H) participants are required to make the following Fixed Deposits:
For those above the age of 50:MYR 150,000. After one year, they are allowed to take out RM 50,000, with relevent proof of purchase of property, car, medical and education expenses.
For those below the age of 50:MYR 300,000. After one year, they are allowed to take out RM150,000, with relevant proof of purchase of property, car, medical and education expenses.
We also provide other services such as Immigration Malaysia, Malaysia My Second Home, Accounting Malaysia, Company Registration Malaysia, Business Registration Malaysia, Payroll in Malaysia. Call us now +603-20789990 or visit our website www.BeyondCorporateGroup.com for more information!