News & Articles Q&A: Do I Need to Pay Taxes If I’m Purchasing a House in Malaysia While Working in Singapore?
Q&A: Do I Need to Pay Taxes If I’m Purchasing a House in Malaysia While Working in Singapore?
29 Jun 2016
Question:
The 2 of us (both sisters) went to Singapore to work since August 2015. We have decided to purchase an apartment in Malaysia that costs RM 450,000. We will be taking a loan of 80%.
We are not required to pay taxes in Singapore since our salaries have not exceeded the minimum requirements. Also, we did not pay any taxes in Malaysia.
1) Do we need to pay any taxes in Malaysia?
2) If the amount of loan taken is small, do we need to submit any pay slips or taxpayer receipt as evidence?
3) If we have financial assistance from family, and we decide to pay off the loan, will we be questioned? How do we report to the tax department?
Answer:
As long as there’s official payslips and it’s your first property, there shouldn’t be any problems. If a property on sale is sold within 5 years, there is a tax to pay. If it’s more than 5 years, most probably you will be able to get a tax exemption.
Although the bank will have several terms and conditions, there shouldn’t be any problem to pay off the loan in full or monthly.
Also, if the source of money is legal, it is totally okay to receive financial support from family.
If you have decided to pay off the loan in full, you should first write to the bank to get an approval before taking the next step.
(中文版请看这里: http://goo.gl/T1VS3X)
The 2 of us (both sisters) went to Singapore to work since August 2015. We have decided to purchase an apartment in Malaysia that costs RM 450,000. We will be taking a loan of 80%.
We are not required to pay taxes in Singapore since our salaries have not exceeded the minimum requirements. Also, we did not pay any taxes in Malaysia.
1) Do we need to pay any taxes in Malaysia?
2) If the amount of loan taken is small, do we need to submit any pay slips or taxpayer receipt as evidence?
3) If we have financial assistance from family, and we decide to pay off the loan, will we be questioned? How do we report to the tax department?
Answer:
As long as there’s official payslips and it’s your first property, there shouldn’t be any problems. If a property on sale is sold within 5 years, there is a tax to pay. If it’s more than 5 years, most probably you will be able to get a tax exemption.
Although the bank will have several terms and conditions, there shouldn’t be any problem to pay off the loan in full or monthly.
Also, if the source of money is legal, it is totally okay to receive financial support from family.
If you have decided to pay off the loan in full, you should first write to the bank to get an approval before taking the next step.
(中文版请看这里: http://goo.gl/T1VS3X)
Source: DurianProperty.com