Why I left Malaysia & where I am now
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- Опубликовано: 1 апр 2024
- Just a quick little update to let you guys know why we decided to leave Malaysia, and the new city I just got to!
Despite my reasons for not staying in Malaysia, it's still one of my favorite cities in the world, and I encourage you to visit or even consider moving there!
For more info on some Malaysia visa programs and living costs, check out my videos below:
MM2H visa: • Malaysia's new residen...
Malaysia's Digital Nomad visa: • Is Malaysia's Digital ...
Cost of living in Kuala Lumpur: • Cost of living in the ...
For semi-regular updates about random stuff I do, follow me on social!
Insta: saira_the_musafir
Tiktok: @sairathemusafir
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#sairathemusafir #muslimtravel #muslimfamily #muslimtravelfamily #hijab #fulltimetravel #digitalnomadlife #worldtravel #travelingtips #digitalnomadlifestyle #adventuretravel #travelinspiration #breakfree #pakistan #overseaspakistani #pakistani #islamabad #backtopakistan
Salam, this is the information I have from a Tax consultant:
"Does the US Have a Tax Treaty with Malaysia?
No, there is no Malaysia-US tax treaty. As such, you may be subject to double taxation.
Tax treaties are designed to prevent US citizens from paying income taxes to both their host nation and the United States. Without a tax treaty, you will have to explore other programs to reduce your tax liability and avoid double taxation.
Fortunately, Malaysia will only tax expats on income generated from activities conducted in the country. Therefore, a pension or other income originating from outside of Malaysia is not subject to Malaysian income tax. "
Cool, thanks for this information!
This is not 100% true. FSI (Foreign Source Income) is taxable in Malaysia. There are some exemptions, you may read 5.2 in the following document www.hasil.gov.my/media/p0lntthw/20221229-guidelines-tax-treatment-in-relation-to-income-received-from-abroad-amendment.pdf
Thank you
Its clear no tax for remittance from outsite Malaysia, but income generated in Malaysia surely will be tax here. If your country also tax income generated in Malaysia, its clearly double taxation if without tax treaty😅
@@sairathemusafirthis exempted foreign income is only until 2025 i think. After that, who knows
Last week I saw your video "Move to Malaysia", this weeks it is "we left Malaysia". That's faster U-turn than UK's interim PM Liz Truss!😂
HAHAHAHAHHAA....thats funny right..i saw that too...
That was different person and she's has commercial interests
Or she's genuine and learning as she's making the videos. Very kind of her to share this information - I would have done the same. Explaining how nice a place is and suggesting to move there and then later finding that you'd have to pay most of your earning to taxes doesn't mean you continue suggesting people to move there or not move there... she's just saying she found this out and so have to move somewhere else (maybe not as nice but costing less in regards to taxes). Maybe she'll find out from other comments (if they are true) that she won't have to pay taxes if the income is not generated from Malaysia and then move back to Malaysia and tell us again to move there and kindly explain to us. If someone hasn't moved to a new country and try find all the rules (especially when they are not clear) wouldn't understand what is going on exactly. Thank you Saira for letting us know.
It's called " Taqiya ". Muslims are allowed to tell lies to non Muslims !!! Telling lies to non Muslims is halal !!!.
Saira Hayati? Saira the Musafir?
Why I left Saudi
Why I left turkiye
Why I left Australia
List goes on....
i think the best way to do this is to see Tax consultant. the fee is not that much for their advices. MDEC is not the correct focal to ask about Taxes.
Never ask a lion what he wants for dinner!!!
I work with loads of Americans in Saudi Arabia they have to file taxs but dont have to pay any from their salary here because the threshold is very high. You need to speak to the American expat community for clarification. You may have just got spooked 😬and left Malaysia unnecessarily.
The threshold is only some $120k?? Not that very high? I’m employed by my husband, $100k. More headache when you own the company, big savings, non-american spouse makes money etc. Anyway i renounced. freedom
You renounced what? Thanks@@cececonnie5509
If your income is credited to a US bank account, you may not necessarily have to declare it to LHDN (the Malaysian IRS)
American here. For US taxes, you don’t pay taxes on the first $120,000 as part of foreign earned income exclusion. Also, you don’t pay state taxes. Just federal. You only have to worry about US taxes if you make over $120000 per year.
We unfortunately don’t qualify for the FEIE since I do visit the US for more than 35 days per year. But yup, otherwise that would work!
You only have to pay income tax on Malaysia-derived income. Foreign income paid into a foreign bank account is not taxable in Malaysia. So if your income source is in US and be paid into your US's bank account, then it is only taxable in America.
Hmm, they change the law in 2022
Go where do you feels belong! But in Malaysia.. Foreigners will never be able to obtain CITIZENSHIP STATUS.. that's what our country law for yall.. So we Malaysian welcome all people from other countries as long as they respect us. ❤
Sister, looking forward to more videos on Malaysia. You are inspiring us to move from Tokyo, Japan .
Please stay at your country, we Malaysian don't like Japanese as u refer to us as " Jungle People". U are a Gaijin when u come to Malaysia
You do what is best for you and your family.
you should ask people from HASIL malaysia to clear the tax question. MDEC people isnt the right people to ask i believe.
There are several tax consultants expert on foreign taxation in Malaysia.
A really good source is the you tuber WorldTaxAndy for a free introduction to the issues for expats in general, but he also has some videos for retirees, US expats, UK expats, EEC nomads, etc. he's quite clear and organized and without the jargon. Clear graphics too.
There are other folks that discuss the issue.
Why would you pay double tax. If your income is coming into your US account and tax is paid. You simply need to do a bank transfer to a Malaysian account and pay for your expenses just like you would when on holiday.
However, i would assume you might need to pay tax on earned income within Malaysia.
I doubt the salary earned in Malaysia will be your primary source of income.
As many others here have explained, best to speak directly to the tax department.
Thats why nomad capitalist revoke US passport becoz US tax.. now he stay in malaysia. Malaysia tax friendly
Indeed... Who needs the US passport nowadays...? 😂😂😂
Andrew Henderson has many houses worldwide. Malaysia is only 1 of them.
Its about US interest. In fact Malaysia already have tax treaties with more than 100 countries..
yep, more importantly, Malaysia doesn't go to war all around the world and does not commit ge no side like U$UKIsfake.
@@enchesoyaregaliaatriadelig5951Those who wants to stay and earn money in USA
Nothing beats the homeland where you were born,its far better than other places
Wow, I am Chinese lady and my husband is Pakistani Muslim man ❤
You Muslim ?
You Muslim ?
It's strange, I am living in the UK, we never pay tax if we live abroad
It’s a pretty uniquely American problem.
Yeah... Strange n greedy... They need that tax to support their allies which you know who...
It’s an American issue 😭
You won't be taxed if your income is not generated in Malaysia.
And they print usd notes as much as they need
Very informative and valuable video!
Nearest neighbor country of malaysia and Indonesia that is known tax free is Brunei Darussalam, cmiiw, i think it has similar tax free policy for foreigners as Dubai in the UAE.
At least you love Malaysia. We wellcome you and your family.....but the cost of living in Malaysia is not as high as in US.
It is much higher if you compare with salaries
Salam. Damn! I was getting ready to leave US and move to Malaysia! Thank you for clearing that up. My hunt resumes...
Please check with a local Malaysian tax lawyer or the LHDN (tax authority) first before you make your decision. The tax implications are different on a case by case basis.
I also made a follow up video to clarify some tax issues here: ruclips.net/video/RPEOlh0g9Bg/видео.html
The tax office in malaysia is called LHDN. Please get a list of countries that have signed the avoidance of double taxation in malaysia.
It's not about Malaysia tax systems. It's due to U.S tax systems reformed during Obama times for U.S corporate/citizens to avoid U.S tax evasions on foreign income.
The requirement that US citizens have worldwide taxation was not instituted uring the Obama administration. What happened then was that reporting requirements increased...but the amount of exempted income nearly doubled during the Obama administration. It has also increased by 30% in the Biden years.
What the Obama administration did (after the release of many Swiss bank accounts, the Panama papers, etc.) was target tax evaders by introducing the FAR...a MANDATORY reporting of foreign bank and other financial accounts to prevent money laundering and illegal financing of drug, people smuggling, terrorism, etc. . This has been copied by almost all European nations and other countries. That is handled in the US by the FINCEN Division of the Treasury Department.
Do we not have to pay the higher one? In our case, UK is higher, so we have to pay UK tax whilst living in malaysia?
@cececonnie5509 not sure about that though
Please my sister i want to live in indonesia and im a uk citizen which job would you recommend as a digital nomad
We are free range human in Tax Farm
I just got back from visiting Malaysia the first time. I loved it. Of all the places I have ever visited, I have never regretted leaving when it was time for me to go.
It wasn't even the best trip, I was sick my first week there. Yet, I felt more at home there than I have in many years.
I will have to find out if retirement income is taxed when I am ready to make a move permanently in a few years.
That's great to hear! Malaysia will always have a special place in my heart.
Check out the foreign earned income credit (FEIC) in IRS publication 54 (I think). You can exclude up to $105,000 USD if you qualify. This might significantly reduce U.S. tax liability.
Only Malaysian Sourced Income (I e if she was promoting Malaysian products abroad) would be subject to Malaysian tax. If ,for some reason that money is taxed in BOTH the USA and in Malaysia she can apply for the Foreign Income Tax Exclusion. That applies tax treaty or not.
Currently the Exclusion is now $120,000 per taxpayer or $240,000 for a joint tax submission by a married couple.
@@gerrelldrawhorn8975 Right, the FEIC applies to income earned outside the U.S. My point was that using it could help reduce her U.S. tax liability. The FEIC would have nothing to do with her Malaysian tax liability if there was any.
In Malaysia in which state do you live
Hi Saira. I don't think tax will be too much of an issue if you're serious about moving to Malaysia. Where there is a will there is always a way. However, you're wise not to commit a large bank deposit to such a visa scheme especially as they are chopping & changing it on a whim. Explore your options & don't rule out the motherland, even with all it's issues.
Very useful information thank you for sharing
Only income generated in Malaysia would be subject to taxes. Income generated abroad would be exampted.
Anyway, welcome any time to visit Malaysia Again
Welcome to my home town. I am a USC now but have great memories for my youth time in Isb/Pindi.
Thanks for sharing these updates!
Hello there, stay safe wherever you are. Blessings.
The choice is yours...so go wherever you think is best for you.... no one can stop you from doing so....
Hi. Enjoying your channel. Why did you leave the US, if you don't mind my asking?
Lots of reasons, I think I'll make a video about it. The main reason was to give our kids a different life experience and the overall quality of life. My husband and I were both working professionals with barely any time with our kids. Travel has been the best decision we've made :)
I would have thought you would qualify for the foreign earned income exclusion - up to $107,000 annually? What did your CPA say?
The FEIE is only applicable if you stay in the US for less than 35 days per year; we still have family in the States so we end up visiting 2-3 months of the year.
if you dont have health issue and no legal battle in court then u will love islamabad.maid driver etc.my son who moved from fremont he say one week earning cover five weeks expenses but he was called back and now he stuck in NY.well good luck i think u b happy here.
Health issues are no issues in Islamabad,they have good JCI accredited hospitals there.ALL the treatment are top class and fraction of the cost in USA.
Dentistry high quality affordable,many Pakamericans come for medicalvacation to Islamabad.
Life expectancy in the city is higher then USA.
This is just Islamabad
The UAE is also fantastic and primarily tax free. Not to forget that if one makes USD, GBP, Canadian Dollar etc. and they live in a south asian country, they could really live big there.
great sharing
Try Morocco - USA has treaty with that country.
MM2H program is stilll not available. No date when the program will be open.
We have been in it for 23 years now!
@@joepkortekaas8813 We've been waiting to apply but just bit the bullet and went to Sarawak - SMM2H.
@@joepkortekaas8813 no one can currently apply. The scheme is not open to new applicants.
So does Pakistan has tax treaty with USA?
You can avoid taxes very easily in Pakistan,just pay usa taxes and its all accepted.
You've never heard of the FEIE Program??
We unfortunately don’t qualify for the FEIE since I do visit the US for more than 35 days per year.
What are your running away from?
Have you looked into the retirement benefits? In Malaysia? In USA? In Pakistan? Right now you "saved" money but in the long run you may lose out a lot.... wise to check it out.
Before you leave i hope u meeet american stay in malaysia how them manage the income taxes . Maybe them help you .
Do not listen/ask mdec staff they are incompetent.... if you go the day after you will get another answer. For this kind of sensitive topic the best is to ask to a lawyer in both countries or a professional tax consultant
Salaam alaikum sister, Your videos have more clarity & straight forward & appreciate that. Have been thinking of moving to Malaysia because it being muslim country with indian culture & food. Weather is definitely the best part along with cost of living.Your thoughts about 3rd option - either deposit in bank or M2H ? Few years to retire, Hate freezing temperatures in chicago & the social benefit will not be sufficient.
Sorry I don’t think I understand your question? In order to get the MM2H, you’d need to make a deposit in a Malaysian bank account
Wa Alaykum as Salam!
@@sairathemusafir Jazakallah khair.
Get lhdn for the advise that is tax department not mdec lol 😂 even now I don’t pay tax yet because I am jobless. U only will be tax from monthly salary. In certain amount of your salary. But if low no tax.
OfCourse that Unjust, pay double on Tax and risk your money on a non-permeant residency.
then why leave US anyways if you gonna pay 2 tax?
Please stay !
Malaysia has tax arrangement with UK ie to declare where you wanted to be tax
Nice! Lucky UK citizens!
I'm indonesian, and been in jakarta for 3 years. It's packed, traffic is crazy, living cost in apartment it's way expensive rather than house. Well, with 30% tax, that's definitely no fun. Alhamdulillah my husband no need to pay tax because it's spouse sponsor.
And Alhamdulillah now you are in Muslim country too. Should share us some amazing culinary and sight seeing while you there too.
We still put eyes on Oman or Sharjah In shaa Allaah. Will see how things go.
Hello. Salaam. Are you suggesting Indonesia 🇮🇩 - not worth investing or moving due to high expenses and traffic?
UAE is even worse.
What about Bangdung, Bogor?
@@i-95toafrica83 wa'alaykum salaam warrāhmatullāhi wabarākaatuh.
it's definitely worth to try, Bandung, Bogor is nice place, I've heard a lot about Bandung.
Lot's of nice places in Indonesia, such as Lombok, Bali, Kalimantan, Aceh especially Sabang Island, Weh Island, and more other great places which I don't know. That's more like natures green scenery.
Medan, JaBoDeTaBek (Jakarta, Bogor, Tanggerang, Bekasi area), Batam, Bandung are more malls, more options and varietas of cuisine too.
So ya, do check and see how it fits what you need
Lol There is another Saira on RUclips talking about why you should move to Malaysia. 😅
Yup!
Lol but she is her UK counterpart
So Malaysia is implementing tax not the obligatory Zakat?
Most Malaysian Muslim paid the obligatory Zakat and it will serves as a rebate in our annual income tax.
jazak-Allah-khair for the income tax tidbit.
Some more research is needed from the Californian perspective.
We’re investigating this very scenario where our passive income gets taxed and at what rate.
You should ask the experiences of other expats who have been in Malaysia for years and some of them are popular on RUclips. They don't face any problems and even some of them get tax relief.
How do you cope facing the daily onslaught of poverty, pollution and sad circumstances of struggling animals and children?
The same way we do in usa.
It's definitely a lot to take in, and the poverty is more in your face in Pakistan. I've shared some thoughts in my latest video: ruclips.net/video/-klooX23euE/видео.html
Dude go to any usa city and see massive homelessness,drug use and gun violence
@@nomorenews THANK YOU!! 💯 agree with you. There’s this glorified illusion of the US/west and i wish more people could see through it.
Maybe you can stop paying tax to US government since the president is considering to send 18b to israel and jets to support the war.
I wish I could! The only way to stop paying US taxes is by giving up the passport, which I can't do because my family lives there.
Sister as salamun alykum.great speech u delivered. Homeland is like mother out of comparison.
Turkey is my 2nd home but bangladesh is my motherland like mother. I love pakistan also for muslim brothers.
Turkiye is so beautiful as well!!
Why not give it up 😀🤙🏼
Nice
What a cute Pakistani 😍
Salaam, if taxes is your main concern, you can give up your residency in the US. It's beautiful to have your cake and ear it but the western countries are designed to always keep their hands deep in your pockets, unless you have a business or self employed then the game changes.
Very true! But because our closest family members still live in the US, we need to keep our passports to be able to go back. Additionally, we want to keep that option open for our children, should they choose to study or live there when they're older (many years down the line).
Newyork Fitna its wierd,inflation is crazy
I ain't paying no taxes in the middle East it's written off after a few years, then maybe Malaysia one day insha'Allah
It would be amazing if Malaysia didn't tax as well!
If you work abroad then, You don’t pay usa taxes unless you make more than 120k/year as a single person or 250k/ as a couple…you must file taxes but there will be no payment if you earn below this amount.
That’s true only if you don’t earn US based income
you are making this too hard...if it is usa salary then create an LLC or DBA and create another salary to report to Malaysia....this will lower your taxes....you may not have to even report salary to malaysia just visit as tourist
Sucks to be a US citizen
So have you completely abandoned US and hope to never go back? Please do a video on this if you haven't already on the reason why. Much respect as not many people go against the grain and leave the West even with all the obvious issues both short & long term.
It is your personal decision .who cares . RUclips video titles are getting strange and stupid.You went to Malaysia.so, your decision to stay or leave.
You look malaysian btw ...
Yup, mamak style
why not settle in south thailand ? muslim majority and very similar with malaysia + tax agreements with USA .
Woah, did not realize there was a tax treaty! Thanks for the rec. I’ve been wanting to visit Thailand
@@sairathemusafirjust residing beside the Msia Thai border, easy to commute to penang or kl by train, 2 hrs to penang n 6 hrs u will reach kl😊
Which city/ town in Thailand @@kamrulz659
@@sairathemusafir Southern Thailand is a conflict area between Malay separatist and the Thai government. Occasionally, three are sporadic bombing in the area. Bangkok will be a better stay but difficult to find halal food.
Alternatively, to get advise from Andrew Henderson of Capitalist Nomad of how American can give up citizenship and get other citizenship e.g. Turkiye, Pakistan etc or a second passport.
I think Pakistan would be the top choice as it is the only Muslim country in the world that has the military strength to protect itself from the rest of the world. We are also planning on relocating from the US to Islamabad or Karachi.
What motivated the move from US?
Lmao that's actually sad reason
Pak army generals are locating to US/Europe after retirement
Come off it, the entire culture in pakistan is hindu,
What about the rampant corruption in Pakistan and lack of security?
What about Uzbekistan?
very promising nation
I'd love to visit! It looks like a gorgeous country. I've also had traditional Uzbeki food a few times, and I'm so impressed with their cuisine. InshaAllah one day I'll get to see it.
Is it same person saira hayati & saira musafir ?
No, I’m a different Saira
If you work in Malaysia and earn in Malaysia, you do have to pay Malaysian taxes, but you probably could exclude $112k from paying US taxes with FEIE.
Thanks, but we don’t qualify for the FEIE because we spend a few months a year visiting family in the US.
@@sairathemusafir Malaysia is good for retiring people who live on their investment coz no capital gain tax.
Please do share your experience in Islamabad. We are also planning to locate to Islamabad, Pakistan from Canada.
Will do!
Where in Canada. Planning same.
@@wasim3145 Toronto
Im canadian also and planning to move, can i ask why you are choosing Pakistan
@@Bella-nr8mi pakistan has an entirely hindu culture.
It is better to be in your origin country... You are free in your home land.
Unfortunately, no law or order in Pakistan.
So sorry you left Malaysia. You will have a perfect life here as a Muslim. Why would you live in countries fill with Infelds when you have the opportunity to live in the midst of all the believers. So what if you have to pay taxes. Isn't the path Jennah more important than any taxes?
Glad you left US! Hopefully it’s for good. Better off outside
Where Muslims to help to buy 🏡 .
I think you have this wrong. If you are a US citizen and you stay outside the US for more than 6 months continuously then you don't need to pay the US federal taxes. I know because I have done that.
Hmm, my accountant in the US says otherwise, as do most tax professionals. But you do you!
@@sairathemusafir Maybe you are talking to wrong tax pros. You never know with these things.
Earlier you were telling that Malaysia gives PR and Nationality and now sudden quit..... again I would like to correct your Knowledge Malaysia don't give any PR or Nationality on the base of MM2H or Business set up.... yes you can get long time visa for entry exit without hassle.... even if you get Married in Malaysia then hard to get Nationality because its a veryyyyyyyyyyyyy long time process.... more or less 15th years... so please my dear Sister share the actual ground Realities...
Anyway God bless you.....
Getting double taxed is CRAZYY
It really is 😭 also very frustrating because we all know what most of the federal funds are used for… “defense”
Saira the US has two exemptions in tax law for those US citizens that live in a country that have no tax treaty with the US.
If you are required to pay taxes abroad there is a Foreign Tax Credit or Deduction that can be taken on foreign earned and taxed income, dividends, interest, and royalties. So you can claim it that tax year or apply it to a future tax year you are resident abroad.
There is also another possibility of reducing your tax burden called the foreign earned income exclusion which does have an exclusion limit of $120,000 for a single submission or $240,000 for a married couple for the 2023 tax year. Here's the catch for the FEIE...you cannot reside in the US for more than 35 days in a tax calender year, ir demonstrate that you are a bona fide tax resident in the foreign country for an uninterrupted period that includes that tax year. This excludes US sourced income so people may opt to use the Foreign Income Credit.
If you stay >182 days or more in a calender year in Malaysia you become a tax resident. This actually places you on the progressive tax schedule and allows you to be eligible for the generous deductions and credits for Malaysian taxpayers. These include child education credits, deductions for mobile phones and computers, health costs, professional memberships, books, etc.
I'd also point out that charitable contributions to Malaysian charities or religious institutions are not deductible on the US taxes but may be on the Malaysian taxes. So if these reduce the tax burden in Malaysia
There are also foreign tax credits if your company pays for your housing (Foreign Housing Exclusion/Deduction). Admittedly the taxation issues may seem daunting and someone who is trained as a tax advisor might be useful the first cycle of submitting taxes to Malaysia and USA.
You don't have to run off to a different country. That said your final net taxes will generally be about that of the higher taxed country. Consider the lower cost of living and the cultural environment.
This is an excellent and thoughtful comment. It doesn't take into account the US self-employment tax, which sole proprietors (many freelancers and some nomads fall into this category) have to pay in the absence of a totalization agreement, even if one qualifies for FEIE. So whatever she's paying in Malaysian taxes (assuming they're higher), she'd pay 15.3% to the US as well.
Thank you so much for taking the time to give such detailed feedback and info on how to reduce the tax burden! The FEIE exemption wouldn't work for us since we have family in the US, and usually go back to visit 2-3 months of the year.
I will definitely reach out to a local Malaysian tax advisor as well, but thanks for pointing me in the right direction!
Well that was quick
Lol
#TXTM
Tribe
Double tax?😮
Whoa!!!!
Yes; US won’t let go of taxes 😭😅
Renounce your US citizenship
Easier said than done brother, SubhanAllah
I hope you do know there is something called foreign tax credit which almost excludes $100,000 in foreign income. Unless you making millions you should be fine
We don’t qualify for this bc we spend more than 35 days in the US. But thanks for the suggestion!
Pakistan is near the top of the list of countries I must visit. I hope you enjoy. Looking forward to your videos from Pakistan.
As for the taxation issue, if I receive Social Security (or a pension) would that be considered foreign income? If you have a portfolio that has dividend and interest income, would that be considered “foreign earned income”?
just do not bargain by your self shopping , let your pakistani auntie do the job and you stay quite and watch .
Hahahaha exactly. We overseas kids are hopeless when it comes to chugaana lol.
So long as your not in the UK I don't care.
We can escape from tax but can't escape from death and Pakistan because we love our Country
Haha so true
Jangan bayar tax.. American government bagi pada Israel
You speak quite eloquently yet regretfully, you didnt do a thorough research on the tax issue matter. Besides MDEC the income tax office should've been the better source of info. Scrolling down you'd discover comments re the matter which you could've gotten frm Msia's IRD saving you frm posting this rather prematured sadly 'odd' posting! Stark contrast too telling of you sis, and your spouse too!
Salam greetings ❤ to you all from Jkrta cty kami-kita-we love Pakistan too Pkstn zindabad
Wasalam, thank you! Can’t wait to visit Indonesia again InshaAllah ☺️
You don't like nasi lemak.
No, I don't like nasi lemak. I LOVE it!!! Seriously, one of the best rice dishes in the world!