CPF only for citizen and PR. I'm holding work pass

IMHO, balanced funds are for "lazy" investors or investors with little capital and wants diversification.

If u can afford to invest in that many funds, u can create your own DIY "balanced"portfolio, e.g. have 50% in bond funds, 50% in equity funds, and perform quarterly re-balancing. Theoretically (and if done correctly), that should give u better returns from investing in balanced funds.

Then make UTs your "compulsory" monthly contribution...otherwise u have zero retirement savings.

Zero EPF is good...no wealth locked away until 55 years old...not contributing to crony and phony government businesses

Yeah I do make compulsory monthly contribution on UTs. Do I need to put in PRS fund or just normal UT?
If PRS, then 70% will be locked, 30% premature withdrawal at 8% tax.
Or I just invest in normal funds eh

Do u pay Meleisia tax ar? If yes, PRS lo...but max RM3K a year...then balance in UTs...SUPER COMBO

No Meleisia tax
So all invest in UTs?

If you are not taxable in Malaysia (ie you pay SG tax) please beware that all dividend/income you receive MUST pay flat non-deductible 26% tax for non-resident taxpayer. Please declare accordingly using LHDN Form M.

Or you can choose to take UT with zero dividend payout...

http://www.hasil.gov.my/pdf/pdfborang/Form_M2012_2.pdf

This post has been edited by gark: Mar 31 2013, 12:21 PM

Then dump all in UTs lo...

I dunno u, but I don't like to over-diversify and having to monitor too many investments. For me, a UT portfolio of less than 10 different funds and a stock portfolio of less than 10 stocks is enuff.

As a non-resident taxpayer you cannot deduct the RM3k from your tax for PRS, all tax are non deductible at flat rate of 26%.

This post has been edited by gark: Mar 31 2013, 12:24 PM

Unker gark, I may be wrong but this is my understanding...

When companies pay dividends, it deduct tax so that shareholders get the net amount after tax. E.g. gross RM1m, net RM750K
UT receive the dividend, it is recognised at the gross amount on the P&L/Income Statement e.g. RM1m, then tax expense of RM250K appear just before the bottom line net income.
If the unitholder is already taxed at the max tier, it makes no difference whether the UT distribute dividend or not...

Pls enlighten me if ayam wrong

UT/Dividend is taxed at 25%, and you can claim some back if you are Malaysian tax resident (after minus all your entitlements, epf, insurance, kids etc), also your tax is on increasing basis (first 10k, next 20 k etc etc).

Non-resident tax payer have to pay 1% more if they are already taxed at 25% and cannot minus ANY entitlement and at flat rate.

I know because i pay the stupid Form M tax every year...

This post has been edited by gark: Mar 31 2013, 12:32 PM

Ok, so for small ant employees like me, it makes little difference. But for bigshot offshore-based Malaysian residents like u, it makes a difference. Noted

That is why i only invest in UT with zero distribution, save all 26%...

The tax applies to all income in Malaysia including rental, commission, dividend, trading, royalty etc etc. The only exemption is interest and capital gains (but not rpgt)...

Haaa I Malaysian need to pay 26% tax as non-resident taxpayer??



Sos kicap LHDN

Tax is already charged at the fund level...

This post has been edited by Pink Spider: Mar 31 2013, 12:40 PM

Yes foreign income received by Malaysian tax resident is exempt from tax, this is true.

Malaysian income received by non-Malaysian tax resident is tax at 26%.

See the difference between these two?

So, are u a MY tax resident?

That means I am exempted by tax? Banyak blur sudah.

Since I pay SG tax, impossible I pay MY tax also.. double taxation.

This post has been edited by jerrymax: Mar 31 2013, 12:43 PM

The tax in UT is for dividend received (now single tier no tax already), the dividend from UT CAN include capital gains which is otherwise not taxable...if they declare dividend everything is now taxable.

No, I am not MY tax resident....thats why i declare form M..