Part I Taxes Malaysian Immigrants Need to Know
1. Corporate Income Tax
Generally speaking, all income of companies operating in Malaysia is taxable. However, remittances to Malaysia from resident and non-resident companies are tax-free (except for banking, insurance, shipping and air transportation companies). A company will be considered as a resident company if it exercises business control and management in Malaysia.
The general income tax for foreign companies is the same as for domestic companies, at 28%, with preferential treatment for companies with emerging industry status in accordance with relevant regulations. For companies engaged in oil production, the income tax rate is 38%.
2. Individual Income Tax
The income of Malaysian residents, the income of foreign exchange from Malaysia to China, and the income of non-residents during the period of their work in Malaysia shall be subject to income tax. Residents are subject to a progressive tax rate of 0-28%, which can be reduced or exempted if they fulfill the requirements. The non-resident personal income tax rate is 28% and non-residents are not entitled to any reduction or exemption unless the non-resident stays or works in Malaysia for less than 60 days of income.
Special income tax is payable in advance on the following incomes earned by non-resident individuals during their stay in Malaysia:
10% on income derived from the use of movable property, the provision of technical consultancy services, the provision of plant and machinery erection services, and the provision of other intangible assets;
10% advance tax on income derived from the provision of patents;
15% advance tax on income derived from interest on bank deposits;
15% advance tax on income derived from interest on bank deposits;
15% advance tax on interest on bank deposits. Advance tax rate of 15%;
Advance tax rate of 15% on income from public **** performances.
3. Real Estate Profits Tax
Income from the sale of real estate, interests in land and shares in real estate companies in Malaysia is subject to Real Estate Profits Tax. The corresponding tax rates for Malaysian citizens and companies are as follows:
30% if the real estate (including related interests) is sold within two years of acquisition;
20% if the real estate (including related interests) is sold within the third year of the acquisition;
15% if the real estate (including related interests) is sold within the fourth year of the acquisition ;
5% if the real estate (including related interests) is sold within the fifth year of acquisition;
5% corporate tax rate if the real estate (including related interests) is sold after the fifth year, which is not payable by Malaysian citizens.
Malaysian citizens and permanent residents are entitled to a tax exemption of up to RM5,000 or 10% of income.
Non-Malaysian citizens and residents are not entitled to tax incentive relief on the sale of real estate and related interests at a rate of 30% within five years and 5% after five years.
4. Sales Tax
Sales tax is a one-time ad valorem tax. All products manufactured in Malaysia and imported goods (except duty-free goods) are subject to sales tax at rates ranging from 0-25%, but raw materials and machinery used in the manufacture of taxable goods are usually exempt from tax. Some non-primary foodstuffs and construction materials are taxed at a rate of 5%, while tobacco and alcohol are taxed at 25% and 20%, respectively. Certain raw material products, basic foodstuffs, building materials, agricultural implements and heavy machinery used in the construction industry are exempt from tax. Some sightseeing and sporting goods, books, newspapers and books are also exempt from tax.
5. Service Tax/Excise Duty
Certain organizations are required to pay service tax on specific goods (e.g., food, beverages, tobacco, etc.). and services, which can also be considered as excise tax. When a service is provided or a good is sold, the tax rate is usually 5% of the price of the service or product. Currently, all large hotels and restaurants inside and outside hotels, conference and performance venues, professional services such as lawyers, accountants and surveyors, insurance and telecommunication services, security and leisure services are subject to service tax.
6. Domestic Taxes
A number of specific locally produced products are subject to domestic taxes, notably cigarettes, alcohol, playing cards, automobiles and so on.
7. Import taxes
Most imported goods are subject to import taxes, which are categorized into value-based taxes and specific rates. The import tax rate for VAT ranges from 2% to 300% (for assembled cars). In recent years, import duties on most raw materials, components and machinery and equipment have been eliminated. However, since the financial crisis in the second half of 1997, the Malaysian government has increased the import tax rates on some large machinery and equipment and high-end consumer goods to reduce foreign exchange outlays by reducing imports. In particular, the import tax rate on luxury cars was increased from 200% to 300%.
8. Export Duties
Malaysia is generally exempt from export duties on exports of manufactured goods, except for export duties on exports of certain resource commodities. Dutiable commodities subject to export duty in Malaysia include resource commodities such as crude oil, logs, sawn timber and palm oil.
9. Stamp Duty
Stamp duty is levied on certain instruments and documents and different rates apply depending on the type of instrument and document and the transaction involved. A stamp duty of 1% will be levied on businesses whose assets reach RM100,000 for the first time, and 2% will be levied if this amount is exceeded. For negotiable regimes, the stamp duty rate is 0.3%. Certain instruments, such as bills of lading and transfer of interest instruments, such as copyrights, patents and trademarks, are exempt from stamp duty.
Part II Advantages of Malaysia Red Card Immigration
1, Free Entry and Exit - There is no time and number of restrictions on the number of times you can travel between China and Malaysia;
2, Exemption from Immigration Supervision
4, the purchase of property without threshold restrictions - the purchase of property in Malaysia without any restrictions on the type and price of the property, more than RM250,000 to buy any property;
5, the purchase of property to enjoy the loan and interest rate concessions - the purchase of property in Malaysia unlimited and limited to the purchase of loans and interest rates. There is no limit to the number of properties that can be purchased, and you can enjoy up to 90% loan-to-value ratio, and the annual mortgage interest rate is only about 4%;
6, free and compulsory education for children - children in Malaysia to enjoy the free and compulsory education provided by the government. This creates bilingual international education opportunities for children, creating a healthy environment for them to grow and a platform for them to achieve their future;
7. No restrictions on births - Not only is there no family planning regulations in Malaysia, but the government encourages more births and better births. Therefore, Malaysia is the country of choice for those who like to have large families to have children. One person invests and the offspring benefit for life.
9, win at the starting line - Malaysian babies in various cities in China can be exempted from entering the elementary school, secondary school international classes to receive bilingual education, so that children win at the starting line.
10, seize the highest point - children with foreign status to enjoy the preferential policies to return to China's college entrance exams, not high scores can be entered into Tsinghua University, Peking University and other key institutions of the country, seize the highest point of education.
11, in Malaysia directly fast visa third country - Malaysia has more than 100 countries around the world visa-free, hold MyPR to go to a third country will be a very easy thing. There is no need to go back to China, directly in Malaysia for Canada, New Zealand and other Commonwealth member countries visa efficiently and quickly;
12, dual identity, free riding - do not have to give up their original nationality, does not affect the cause of life in China; at the same time have MyPR, in addition to the Malaysian passport, the right to vote and the government's public health services. MyPR, in addition to the absence of Malaysian passport, the right to vote, and the government's public health care services, enjoy the same national treatment as local citizens.
Expanded reading: Malaysia immigration process
The first step: the pre-submission of the application form "Malaysia's second home program" service agreement
The second step: the submission of the following information
1. A Malaysia My Second Home application form
2. Three Social Visit Pass forms (one original and two photocopies)
3. An application letter (a letter written and signed by the main applicant)
4. A copy of the main applicant's curriculum vitae, which includes academic qualifications, work experience, skills or expertise
5. Five colorful passport-size photographs (white, white and white). passport-size photographs (white background)
6. Certified copy of passport/travel document (all pages)
7. A personal bond form
8. Certificate of the applicant's clean record (notarized)
9. Self-declaration of the applicant's and family members' state of health form
10. Certified copy of the marriage certificate (if accompanied by spouse)
11, Certified copy of birth certificate/legal documents of family members (if accompanied by children/adopted children/continuation of children/parents), letter of confirmation from medical specialist/general practitioner (if accompanied by a disabled child over 21 years of age)
12, Certified copy of bank statements of the last 3 months
13, Pay slips/profit and loss statements/pension statement of the last 3 months
13, Self-declaration of health status of applicant and family members
14, Notarized copies of the following documents Certified copy of payslip/profit and loss account/pension fund for the last 3 months
Step 3: Letter of Approval issued by the Immigration Department - My Second Home Center
Step 4: Within 6 months from the issuance of the Letter of Approval, the applicant is required to come to Malaysia in person to complete the following matters:
1) Purchase the applicable Malaysian insurance policy from any one of the insurance companies in Malaysia. Purchase a medical insurance policy for Malaysia from any insurance company in Malaysia
2. Set up a fixed deposit account with any bank in Malaysia which is automatically renewed annually
3. Obtain a medical report from any registered private hospital or clinic in Malaysia
Step 5: Submit supplementary documents to the Immigration Department - My Second Home Center, which is located in the heart of Malaysia. -My Second Home Centre as follows:
1. Submission of Fixed Deposit Certificate
2. Submission of Health Insurance Policy
3. Submission of Medical Report
Step 6: The applicant is successfully enrolled in the Malaysia My Second Home Program