Why MM2H is the Best Residency Visa in Malaysia?
Quite often, we have been asked the question about why MM2H is the best residency visa in Malaysia. We are glad to summarize the comparison between Expatriate Work Visa with MM2H Visa features as follows: Why MM2H is the best residency visa in Malaysia?
- The MM2H visa holder can decide if they wanted personal income in the businesses they owned in Malaysia. Income derived from the director’s fee, salary and allowances are subject to tax. MM2H visa holders can have the choice if to receive this income for themselves. The choice can adopt as when he chooses, which can depend on the Company’s performance or declaration by the shareholders as advised by the tax professional. MM2H holders need not pay tax if their company did not declare any income for him.
- For work visa holders, they must pay personal income tax as they are required to declare a minimum monthly salary of RM5,000 to the Malaysian Immigration. These yearly tax receipts must be presented for their next renewal of visas.
- The renewal process is very easy for MM2H visa holders as compared to that of the expatriate work visa as MM2H renewal happens only every 10 years. The expatriate work visa requires compliance with the latest requirements by the Immigration Department and other Ministries, which may have changed during the 2 years of the work visa, as well as payment of renewal fees charged by the Agent.
- Besides tax needed to pay, the expatriate work visa holders need to maintain and ensure their company remains engaged in the operation for the next renewal to be approved. The Immigration and other Ministries have the right to reject their 2-years work visa if your company is not functioning, profitable, and if the record and licenses of the company are not updated with the respective Ministries. No record needed to be maintained by MM2H participants for the next renewal!
- Since February 2009, all foreigners, including the MM2H visa holders are allowed to own their business of 100% by themselves, as long as they comply with domestic regulations such as required licenses. Please refer to the guide for the licensing of different types of business for foreigners.
- While MM2H visa holders need to comply with all regulations and update records as required by the relevant Ministries. However, their visa is not subject to scrutiny for renewal. Rejection for renewal only happens if the participants violate Malaysia’s laws. MM2H visa can be renewed indefinitely.
- MM2H visa 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 visa holders can bring their parents who age above 60 as their dependents to stay with them during the 10 years without the need for the further placement of fixed deposit.
- As MM2H visa holders, they can enjoy a higher margin of bank financing for their property and car purchase, as compared to expatriate work visa holders.
- A tax-free car under the MM2H program is also not available for expatriate work visa holders. This would mean that the latter would need to spend more if they need a car to move around in Malaysia.
Among other, many benefits under the MM2H program provide true cost savings and reduced stress, which is not available to work visa holders are the tax-free car and bringing along a maid from your own country.
The cost difference between the two visas is the placement of the MM2H Fixed Deposit, which is required by the MM2H program. Depending on your financial ability and needs, the decision is yours to make! The MM2H program is 100% risk-free!
Upon approval, MM2H participants are required to place Fixed Deposits as follows:
For applicants aged above 50: Fixed Deposit RM150,000 to be placed after approval. After one year, they are allowed to take out RM50,000 with relevant proof of purchase for property, car, medical and education expenses.
For applicants aged below 50: Fixed Deposit RM300,000 to be placed. After one year, they are allowed to take out RM150,000 with relevant proof of purchase for property, car, medical and education expenses.
For retirees, the MM2H visa is no doubt the best residency visa in Malaysia, as this group of golden agers, want to free themselves from the hassle of complying with any complicated application, regulations, and taxes. However, we still say that the ” MM2H program provides the best residency visa for foreigners to retire and live in Malaysia!”
Please do contact us at +603-2161 5096, should you have any further inquiries or concerns. We will be happy to assist. By contacting us, you have made ‘the first step in getting it right’. Migration is usually a once-in-a-lifetime affair! Our experience will ensure things go hassle-free and completely smooth. You could e-mail us at [email protected] or fill up this form, and we’ll get back to you right away!