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 Receiving and Holding Foreign Currencies

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TSdarthbii
post Sep 20 2021, 02:09 PM, updated 3y ago

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Hi all,

I've did my homework and read up on some threads discussing a similar topic here but not as specific to the circumstance outlined here.

The scenario goes that:
1) A local MY freelancer providing online services in exchange for USD payments from overseas clients.
2) Routinely, there would be costs denominated in the USD that the freelancer has to incur monthly (eg software costs) which the freelancer has to incur.

The freelancer is looking for a solution to:
a) Hold the USD payments received instead of having it be converted directly to MYR upon receipt (eg. like how TransferWise is doing it now)
- This is so that there wouldn't be double FX conversions as the freelancer has to pay for USD operational costs

b) Be able to remit money back to MY for own personal expenses and tax purposes as when necessary at lowest fees and favorable rates

Of course, the best solution was TransferWise's borderless account before it got shut down here.

Among the alternatives right now could be:
1) Using Payoneer
2) Opening a multi currency account with a local bank

Are there better alternatives? Is it possible to open an SG Wise account despite being an MY resident?

Look forward to some suggestions notworthy.gif
MUM
post Sep 20 2021, 02:19 PM

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While waiting for responses, you can try this tread,
Transfer money from US to Malaysia
https://forum.lowyat.net/topic/5193147

Ramjade
post Sep 20 2021, 02:31 PM

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QUOTE(darthbii @ Sep 20 2021, 02:09 PM)
Hi all,

I've did my homework and read up on some threads discussing a similar topic here but not as specific to the circumstance outlined here.

The scenario goes that:
1) A local MY freelancer providing online services in exchange for USD payments from overseas clients.
2) Routinely, there would be costs denominated in the USD that the freelancer has to incur monthly (eg software costs) which the freelancer has to incur.

The freelancer is looking for a solution to:
a) Hold the USD payments received instead of having it be converted directly to MYR upon receipt (eg. like how TransferWise is doing it now)
    - This is so that there wouldn't be double FX conversions as the freelancer has to pay for USD operational costs

b) Be able to remit money back to MY for own personal expenses and tax purposes as when necessary at lowest fees and favorable rates

Of course, the best solution was TransferWise's borderless account before it got shut down here.

Among the alternatives right now could be:
1) Using Payoneer
2) Opening a multi currency account with a local bank

Are there better alternatives? Is it possible to open an SG Wise account despite being an MY resident?

Look forward to some suggestions notworthy.gif
*
No cannot open sg wise. What you can do is wait for sg border to open. Then go to dbs hq and open up dbs Vickers with their Multicurrency account (you need dbs vickers before they let you have the Multicurrency account. You don't need to use DBS vickers). Dbs Multicurrency account can store USD.
TSdarthbii
post Sep 20 2021, 03:17 PM

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QUOTE(Ramjade @ Sep 20 2021, 02:31 PM)
No cannot open sg wise. What you can do is wait for sg border to open. Then go to dbs hq and open up dbs Vickers with their Multicurrency account (you need dbs vickers before they let you have the Multicurrency account. You don't need to use DBS vickers).  Dbs Multicurrency account can store USD.
*
Any solutions if I'm based locally instead and don't intend to cross over to SG just to create an account?

QUOTE(Ramjade @ Sep 14 2021, 09:25 PM)
Go open Ibkr account. Go open CIMB sg account if you already have CIMB my. Transfer in the shares to Ibkr. Sell the shares. Convert using USD at Spot rate using IB (real time rates without any markup) into SGD. Withdraw out SGD into CIMB sg.
Use CIMB sg to send money back to Malaysia. They have rates almost simar to money changer rate for RM.
*
This post has been edited by darthbii: Sep 20 2021, 03:21 PM
TSdarthbii
post Sep 20 2021, 03:19 PM

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QUOTE(MUM @ Sep 20 2021, 02:19 PM)
While waiting for responses, you can try this tread,
Transfer money from US to Malaysia
https://forum.lowyat.net/topic/5193147
*
Read it through again, possible to just open an IBKR account just to use it to store USD?
MUM
post Sep 20 2021, 03:20 PM

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QUOTE(darthbii @ Sep 20 2021, 03:19 PM)
Read it through again, possible to just open an IBKR account just to use it to store USD?
*
try post 6 and 18 of that link?

hmm.gif after some many years after the large accumulation of the money,...how to get it back to Malaysia without being queried by the authorities? will they query?

This post has been edited by MUM: Sep 20 2021, 03:24 PM
TSdarthbii
post Sep 20 2021, 03:23 PM

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QUOTE(MUM @ Sep 20 2021, 03:20 PM)
try post 6 of that link?
*
Essentially that'll bs a double conversion as well right if intending to remit back to MYR? USD -> SGD -> MYR using a HSBC global account

This post has been edited by darthbii: Sep 20 2021, 03:24 PM
MUM
post Sep 20 2021, 03:26 PM

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QUOTE(darthbii @ Sep 20 2021, 03:23 PM)
Essentially that'll bs a double conversion as well right if intending to remit back to MYR? USD -> SGD -> MYR using a HSBC global account
*
try post 18?...there is a summary of the "possible" fees

my immediate concern is how to bring it back to Malaysia after years of accumulation without any chance of being queried by the authority?
TSdarthbii
post Sep 20 2021, 03:32 PM

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QUOTE(MUM @ Sep 20 2021, 03:26 PM)
try post 18?...there is a summary of the "possible" fees

my immediate concern is how to bring it back to Malaysia after years of accumulation without any chance of being queried by the authority?
*
For the scenario on that link, I think it should be fine as long as there's documents to prove that it's via capital gains which doesn't attract any tax.

For the scenario outlined in this thread, definitely be looking to pay taxes here yearly.
MUM
post Sep 20 2021, 03:39 PM

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QUOTE(darthbii @ Sep 20 2021, 03:32 PM)
For the scenario on that link, I think it should be fine as long as there's documents to prove that it's via capital gains which doesn't attract any tax.

For the scenario outlined in this thread, definitely be looking to pay taxes here yearly.
*
thumbup.gif

just remember to properly keep a documented details of your "overseas" income and your money into those investment.....for the duration of the investment
for you will not have record of those 'overseas" money banked or going thru local banking system

i suppose there is a need to have documented details showing the tally of your local income + overseas income and tally with the declared tax submission too

Ramjade
post Sep 20 2021, 03:44 PM

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QUOTE(darthbii @ Sep 20 2021, 03:17 PM)
Any solutions if I'm based locally instead and don't intend to cross over to SG just to create an account?
*
The only option in Malaysia is need to open foreign currency account. Need to keep lime rm10k lockup inside there.

For interactive broker, unless you hav us bank account then it's cost effective as you can do a local tranasfer into interactive broker but the one who pay you can't do it.

This post has been edited by Ramjade: Sep 20 2021, 04:26 PM
dwRK
post Sep 20 2021, 04:05 PM

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QUOTE(darthbii @ Sep 20 2021, 03:19 PM)
Read it through again, possible to just open an IBKR account just to use it to store USD?
*
the issue is your customer (3rd party) cannot deposit into your ibkr account... it will be rejected
SUSxander83
post Sep 20 2021, 07:43 PM

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QUOTE(darthbii @ Sep 20 2021, 03:19 PM)
Read it through again, possible to just open an IBKR account just to use it to store USD?
*
No point because the source has to be your own account

QUOTE(darthbii @ Sep 20 2021, 03:23 PM)
Essentially that'll bs a double conversion as well right if intending to remit back to MYR? USD -> SGD -> MYR using a HSBC global account
*
No double conversion if the source currency pay direct to your HSBC account

The question is the bank fees are the killer coupled bank conversion rates

QUOTE(Ramjade @ Sep 20 2021, 03:44 PM)
The only option in Malaysia is need to open foreign currency account. Need to keep lime rm10k lockup inside there.

For interactive broker, unless you hav us bank account then it's cost effective as you can do a local tranasfer into interactive broker but the one who pay you can't do it.
*
Not all local banks need 10k account these days anymore but a minimum of usd1k is the lowest for new account
Soul Seeker
post Sep 21 2021, 12:24 AM

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QUOTE(xander83 @ Sep 20 2021, 07:43 PM)
No point because the source has to be your own account
No double conversion if the source currency pay direct to your HSBC account

The question is the bank fees are the killer coupled bank conversion rates
Not all local banks need 10k account these days anymore but a minimum of usd1k is the lowest for new account
*
Local bank multi currency account can receive foreign transfer and store as the original currency without convert to ringgit ?
SUSxander83
post Sep 21 2021, 02:28 AM

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QUOTE(Soul Seeker @ Sep 21 2021, 12:24 AM)
Local bank multi currency account can receive foreign transfer and store as the original currency without convert to ringgit ?
*
Still convert otherwise how banks is gonna make money from you doh.gif

The only way is to get multi currency current account which is rarely given to consumers because you need a minimum of at least usd100k in cashback locked up to that’s account
icemanfx
post Sep 21 2021, 05:01 AM

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Before long, the account will be flagged for amr/cft.

TSdarthbii
post Sep 21 2021, 06:57 AM

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QUOTE(MUM @ Sep 20 2021, 03:39 PM)
thumbup.gif

just remember to properly keep a documented details of your "overseas" income and your money into those investment.....for the duration of the investment
for you will not have record of those 'overseas" money banked or going thru local banking system

i suppose there is a need to have documented details showing the tally of your local income + overseas income and tally with the declared tax submission too
*
QUOTE(icemanfx @ Sep 21 2021, 05:01 AM)
Before long, the account will be flagged for amr/cft.
*
For sure going to do it legally by paying taxes on time. cool.gifcool.gif



TSdarthbii
post Sep 21 2021, 06:57 AM

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QUOTE(Ramjade @ Sep 20 2021, 03:44 PM)
The only option in Malaysia is need to open foreign currency account. Need to keep lime rm10k lockup inside there.

For interactive broker, unless you hav us bank account then it's cost effective as you can do a local tranasfer into interactive broker but the one who pay you can't do it.
*
QUOTE(dwRK @ Sep 20 2021, 04:05 PM)
the issue is your customer (3rd party) cannot deposit into your ibkr account... it will be rejected
*
QUOTE(xander83 @ Sep 20 2021, 07:43 PM)
No point because the source has to be your own account
No double conversion if the source currency pay direct to your HSBC account

The question is the bank fees are the killer coupled bank conversion rates
Not all local banks need 10k account these days anymore but a minimum of usd1k is the lowest for new account
*
QUOTE(Soul Seeker @ Sep 21 2021, 12:24 AM)
Local bank multi currency account can receive foreign transfer and store as the original currency without convert to ringgit ?
*
QUOTE(xander83 @ Sep 21 2021, 02:28 AM)
Still convert otherwise how banks is gonna make money from you  doh.gif

The only way is to get multi currency current account which is rarely given to consumers because you need a minimum of at least usd100k in cashback locked up to that’s account
*
From another thread discussing something similar, came across HSBC Everyday Global Account where the requirements are supposedly low with no minimum balance requirement https://www.hsbc.com.my/accounts/products/everyday-global/.

Not sure if there's a catch with regards to the application process there, or the inevitable catch of banks with not very good conversion rates and fees. unsure.gif

Well, the next best thing at the moment would be Payoneer.

icemanfx
post Sep 21 2021, 08:20 AM

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QUOTE(darthbii @ Sep 21 2021, 06:57 AM)
For sure going to do it legally by paying taxes on time. cool.gifcool.gif
*
Paying tax doesn't legalize unlawful activities.
TSdarthbii
post Sep 21 2021, 08:44 AM

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QUOTE(icemanfx @ Sep 21 2021, 08:20 AM)
Paying tax doesn't legalize unlawful activities.
*
How would it be illegal/unlawful if it's derived from rendering digital services like Web/UX Design, Copywriting? 🤔

This post has been edited by darthbii: Sep 21 2021, 08:55 AM

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