Finance information for international assignments to Malaysia

The following information sets out the basics of finance in Malaysia for international assignments to the country.


The following information sets out the basics of finance in Malaysia for international assignments to the country.Cost of LivingMalaysia is generally recognised as having a very low cost of living. Expats typically find the country an inexpensive destination, especially those settling under the Malaysia My Second Home Programme, for whom remittances from abroad are not taxed.Major hotels and larger establishments readily accept currencies such as US Dollars, Pounds Sterling, Euros, Deutsch Marks, Japanese Yen, and Australian Dollars.A service charge of 10% and government tax of 5% is added to bills in many hotels and restaurants. Tipping is rarely customary in most restaurants.In addition, the Malaysian Ringgit is weak against the world's leading currencies and so it is generally cheap to buy and live in Malaysia.TaxationMalaysia&#x;s tax regime is viewed as highly attractive to expats. Generally, all income of companies and individuals accrued in, derived from or remitted to Malaysia is liable to tax.However, income remitted to Malaysia by resident companies (other than companies carrying on the business of banking, insurance or air and sea transportation), non-resident companies and non-resident individuals is exempt from tax.Income tax is assessed on income earned in the current year.PropertyIt is relatively cheap to rent a house or apartment in Malaysia, except in central Kuala Lumpur where rental prices are higher.Overseas buyers are eligible to purchase property at a cost of not less RM150,000 (about &#x;22,000).&#x; There is no upper limit to the cost of properties that may be purchased by overseas investors in Malaysian property.Browse Re:locate&#x;s serviced accommodation section, here.Sources: mymalaysiaparadise.com, expatfocus.com Cost of LivingMalaysia is generally recognised as having a very low cost of living. Expats typically find the country an inexpensive destination, especially those settling under the Malaysia My Second Home Programme, for whom remittances from abroad are not taxed.Major hotels and larger establishments readily accept currencies such as US Dollars, Pounds Sterling, Euros, Deutsch Marks, Japanese Yen, and Australian Dollars.A service charge of 10% and government tax of 5% is added to bills in many hotels and restaurants. Tipping is rarely customary in most restaurants.In addition, the Malaysian Ringgit is weak against the world's leading currencies and so it is generally cheap to buy and live in Malaysia.TaxationMalaysia&#x;s tax regime is viewed as highly attractive to expats. Generally, all income of companies and individuals accrued in, derived from or remitted to Malaysia is liable to tax.However, income remitted to Malaysia by resident companies (other than companies carrying on the business of banking, insurance or air and sea transportation), non-resident companies and non-resident individuals is exempt from tax.Income tax is assessed on income earned in the current year.PropertyIt is relatively cheap to rent a house or apartment in Malaysia, except in central Kuala Lumpur where rental prices are higher.Overseas buyers are eligible to purchase property at a cost of not less RM150,000 (about &#x;22,000).&#x; There is no upper limit to the cost of properties that may be purchased by overseas investors in Malaysian property.Browse Re:locate&#x;s serviced accommodation section, here.Sources: mymalaysiaparadise.com, expatfocus.com