What kind of taxes are the participants of this programme normally subjected to?
Income tax is imposed on income earned from investments in local companies and local share market. Please refer to www.hasil.gov.my for more details on the tax structure
Is the interest for their fixed deposit taxable? Some say it is taxable, other it is not taxable. If the deposit amount exceeds RM100, 000.00 OR if the deposit period is one year. What is the exact regulation?
Interest earned by an individual from fixed deposit account is exempted in the following situations:-
- Period exceeding twelve months or more – any amount of interest.
- Period not exceeding twelve months – interest on fixed deposit account of up to a maximum of RM100,000.00.
Is income remitted from abroad taxable?
Before year of assessment 2004 income remitted from abroad to Malaysia (apart from pension) is subject to tax. However, from year of assessment 2004 all income remitted from abroad is not subject to tax.
Does the participant have to submit any personal tax declaration to the Income Tax Department of Malaysia, like Malaysians have to?
Yes.
If the participants have to submit income tax return to the Income Tax department, are they entitled to any exemptions under the programme?
They will only be taxed on the income earned in Malaysia after taking into account the personal tax allowances. The income will be taxed according to a progressive tax rate structure.
I am a German in which my country has a `double taxation agreement’ with Malaysia. I have an early pension and if I stay in Malaysia for at least 184 days, my pension scheme will not be taxed by the German Government and will also not be taxed by the Malaysia government. Is this true?
Under this Programme, pension remitted to Malaysia is exempted from tax.