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.hasilnet.org.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
i. Period exceeding twelve months or more – any amount of interest.
ii. Period not exceeding twelve months – interest on fixed deposit
account of up to a maximum of RM100,000.00.
Is income remitted from abroad
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
If the participants have to submit income tax return to the
Income Tax department, are they entitled to any exemptions under the
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
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.