Encourage the Return of Malaysian Experts Abroad
Withdrawal of Levy on Profits Repatriated from Short-Term Portfolio Investmen
Securitisation of Assets
1. Incentives to Encourage the Return of Malaysian Experts Abroad
Currently, income remitted from abroad by individuals resident in Malaysia is subject
to income tax. Personal effects except for motorcars imported by returning Malaysians
who reside overseas are exempted from duties. Unskilled husbands who are non-citizens
are not given permanent resident (PR) status. Non-citizen wives can only apply for
PR status after residing in Malaysia for 5 years.
To encourage Malaysian experts to return home, the following incentives are proposed
||income remitted within 2 years from
the date of arrival will be exempted from income tax;
||2 motorcars registered in the country
of origin for at least 6 months in the name of either the husband/wife/children will
be exempted from import duty and sales tax; and
||husband/wife and children of a Malaysian
citizen will be given PR status within 6 months from the date of arrival.
A Special Committee to be formed will identify those individuals with the required
The proposal is to be effective from 1st January 2001.
2. Withdrawal of Levy on Profits Repatriated from Short-Term Portfolio
Presently, as a measure to discourage large outflows of short-term capital, profits
repatriated from short-term portfolio investment are subject to a levy of 10% on
the profits repatriated.
In line with improvement in the capital market environment, it is proposed in the
Budget Speech that the 10% levy on portfolio profits repatriated after one year be
3. Securitisation of Assets
Currently, instruments executed on or after 30th October 1999 but not later than
31st December 2000 for the purpose of securitisation of assets as approved by the
Securities Commission are exempted from stamp duty. Similarly, chargeable gains accruing
on securitisation of chargeable assets are also exempted from real property gains
tax if the gain accrues between 30th October 1999 until 31st December 2000.
To strengthen the bond market, it is proposed that transactions relating to the issues
of asset backed securities be exempted from stamp duty and real property gains tax.
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© October 2000