A Borneo Escape - MM2H Sdn Bhd, Sarawak

A Borneo Escape - MM2H Sdn Bhd, Sarawak Live in Malaysia on a Sarawak Malaysia My Second Home (S MM2H) Visa

13/04/2026

Our office is all set up in Kuching! Malaysia My 2nd Home A Borneo Escape - MM2H Sdn Bhd, Sarawak

13/04/2026

Kuching, we are in town!

09/04/2026

Foreign‑sourced income (FSI) exemption – what it means for MM2H holders.

Many people ask whether their overseas investment income is taxable in Malaysia. The basic rule is: individuals are taxed on income that is “derived” from Malaysia – for example, local employment, local business or rental of Malaysian property. Income that arises from outside Malaysia (foreign‑sourced income) is treated differently.

Under the current foreign‑sourced income (FSI) exemption, foreign‑sourced income received in Malaysia by individual taxpayers is exempt from Malaysian income tax up to 31 December 2036, as long as it is genuinely derived from outside Malaysia and the conditions in the latest LHDN guidelines and Exemption Orders are met. This is highly relevant for MM2H participants and other resident expatriates who fund their living expenses here using overseas pensions, investments or trading accounts.

In practice, if your funds are generated from assets and activities outside Malaysia (for example, foreign brokerage accounts, foreign properties or overseas employment) and you then remit that money into Malaysia, it normally falls under the FSI exemption instead of being taxed here. However, income that is actually generated in Malaysia – such as local salary, fees for work done in Malaysia, or rental from Malaysian properties – remains taxable in the usual way.

For anyone interested, you can read LHDN’s own explanation in their “Who is Taxable?” guidance here (I’m sharing the link together with this post). It’s always a good idea to check the latest LHDN guidelines or speak to a qualified tax adviser, especially if your situation is more complex (e.g. active business operations or structures in multiple countries).

More than a music festival—it’s a place for families to connect.From interactive workshops to kids’ activities in the da...
29/03/2026

More than a music festival—
it’s a place for families to connect.

From interactive workshops to kids’ activities in the day,
to shared rhythms and dancing at night,
every moment brings you closer together.

That’s the magic of Rainforest World Music Festival 2026.

📅 26 – 28 June 2026
🎟 rwmf.net

Good news: for SMM2H participants, interest from savings and fixed deposits with licensed Malaysian banks is NOT subject...
27/03/2026

Good news: for SMM2H participants, interest from savings and fixed deposits with licensed Malaysian banks is NOT subject to Malaysian income tax.

The Inland Revenue (LHDN)’s guidance and explanatory notes provides that “pendapatan faedah yang diterima oleh individu bermastautin daripada wang yang didepositkan dalam institusi berikut adalah dikecualikan cukai: (i) bank atau syarikat kewangan yang dilesenkan …” which means “for interest on deposits by individuals with licensed banks and finance companies”.

The Income Tax Act 1967 – Schedule 6: interest-related exemptions explicitly list interest on deposits with licensed banks as exempt for individuals.

💬 **Important:** This is about Malaysian tax only. Your home country may still tax worldwide interest income, so SMM2H clients should check with a tax adviser in their home jurisdiction.

Knowing the costs and timeline helps you to plan better.
16/03/2026

Knowing the costs and timeline helps you to plan better.

Knowing the total costs-outlay and timeline ahead of time can help you to better budget effectively throughout the whole application process.

24/12/2025

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1st Floor, Lot 2141, Jalan Buangsiol
Limbang
93700

Telephone

0168641333

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