Moved to Malaysia on permanent basis. Anyone out there?

[AbdulBasit.com]

Hello and Assalamo Alaikum,

It’s been really busy last few months but very exciting at the same time as well. Due to hectic schedule, I was unable to post much but I think things are settling down a bit at my end from now on wards.

I’m very happy to share that I’ve moved to Kuala Lumpur, Malaysia on permanent basis this month with my family. I also wanted to tell that I’ll continue working as domain investor as this is my sole business. So as of this month, currently I’ve 3,200 domains in portfolio.

Some might think it’s very risky to move straightaway with family and be doing only domain investing. I know it was tough decision to think of moving with family and doing solely domain investing because of the cost of living is pretty high compare to Pakistan. I tend to agree at some extent but what’s a lively life without taking any risks yeah

So here I’m in Malaysia. If any domainer residing in Kuala Lumpur or any part of Malaysia, feel free to get in touch with me and we shall meet soon.

The main purpose of sharing is that I'm solely dependent on domaining and it is possible to live in any part of the world doing this wonderful business. One has to be passionate, dedicated, consistent and have load of patience.

Thanks for reading and feel free to comment if you like to.

 

[Zilla]

I really been impressived by the reading, you are the hero my friend.. I really think u give all of us a real demo how we can change and control our own life thru "passionate, dedicated, consistent and have load of patience."

I normally look domainning as a hobby, and just play it ...I remember I also read another thread somewhere in NP talking about the live cost by memeber located in different country/location, I believe, some of member here is really working very smart and very hard, and look domaining as a real tool to change their life...I repect them..

congratulations for your sales and movement to MY..and all the best wish to you and your family...

 

[AbdulBasit.com]

I really been impressived by the reading, you are the hero my friend.. I really think u give all of us a real demo how we can change and control our own life thru "passionate, dedicated, consistent and have load of patience."

I normally look domainning as a hobby, and just play it ...I remember I also read another thread somewhere in NP talking about the live cost by memeber located in different country/location, I believe, some of member here is really working very smart and very hard, and look domaining as a real tool to change their life...I repect them..

congratulations for your sales and movement to MY..and all the best wish to you and your family...

Thanks for the kind words and compliment

I agree that it really depends on the geographic location as well due to cost of living varies from place to place. Like the cost of living was pretty low living in Pakistan compare to Malaysia where it's pretty high. But when I consider Malaysia with Canada/Europe, Malaysia would be cheaper. So it all depends on this factor as well. Living in Pakistan gave me the leverage to save as much as possible and invest in domains more aggressively. Also the domain income was tax exempted. The good thing is it's exempted in Malaysia as well as ALL kind of foreign income is tax exempted which is very good!

Thank you!

 

[Paul 11]

Same boat, am in Moscow, hence my question. Just in case, there is excellent (and fun) new read on tax optimizaton / geoarbitrage by a Dutch guy Julius VanderBeek "Tax Free Digital Nomad'. Value. Merci @AbdulBasit.com!

wow! It can get complicated with different countries and laws... And we can still to do the best we can to make it work for ourselves.

 

[Jurgen Wolf]

According to the recent thread:
https://www.namepros.com/threads/is...ot-problem-solved.1155164/page-2#post-7406456
Looks that Sedo doesn't allow CC/PayPal payments for MY residents by default... It must be requested individually.
Just FYI.

 

[wot]

How are you getting on with the visa long term stay requirements for living in Malaysia, quite stringent and expensive I believe?

 

[AbdulBasit.com]

According to the recent thread:
https://www.namepros.com/threads/is...ot-problem-solved.1155164/page-2#post-7406456
Looks that Sedo doesn't allow CC/PayPal payments for MY residents by default... It must be requested individually.
Just FYI.

Thanks for sharing but I didn't found anything clear in that thread of FAQ of Sedo that for Malaysia Sedo account holders, CC/PayPal payments are not accepted unless requested individually. Can you give the specific link to Sedo FAQ or particular post reply of any at NamePros?

 

[AbdulBasit.com]

How are you getting on with the visa long term stay requirements for living in Malaysia, quite stringent and expensive I believe?

Yes, there are tough requirements and stringent checking which took long time than expected. However, I'm on MM2H (Malaysia My Second Home) visa which is a 10 years renewable visa. Their 2 main requirements are to deposit MYR300,000 as fixed deposit until you want to live on this visa and can withdraw MYR150,000 after 1 year for approved expenses like schooling, car purchase, house purchase and medical. The remaining MYR150,000 will remain in fixed deposit until you cancel the visa.

The second requirement is to prove foreign income of MYR10,000 for the last 3 months when applying for this visa which is equivalent to around US$2,400.

There are many plus points living on this visa here like I can live anywhere in Malaysia, house purchase is not necessary to get this visa, all foreign income is tax exempted. It's a 10 years renewable visa with multiple entries.

The cons are that I'll never be able to get PR (Permanent Residency), let alone Malaysian citizenship. Also the MYR150,000 cannot be withdrawn/used unless I cancel this visa.

 

[Jurgen Wolf]

It is clearly stated in the mentioned thread... and confirmed by Sedo representative.
OP is from Malaysia... And this country is in Sedo internal antifraud list where payment methods are limited by default.
They didn't publish this list entirely, just briefly stated that payment methods depend on your country.

 

[AbdulBasit.com]

It is clearly stated in the mentioned thread... and confirmed by Sedo representative.
OP is from Malaysia... And this country is in Sedo internal antifraud list where payment methods are limited by default.
They didn't publish this list entirely, just briefly stated that payment methods depend on your country.

Thanks for the heads up! I didn't knew the OP was from Malaysia.
I've noted that for future reference just in case.... However, I'm already operating Sedo account of Pakistan so I've all payment methods available and even in future I change to Malaysia address, I'm sure there won't be an issue for me because my account is overall in good position.

 

[Jurgen Wolf]

Yes...
Probably, your account is already flagged as reliable...
But your endusers from MY (if any) will be limited by default.

 

[Anna_M]

Thank you for your exhaustive explanation, @AbdulBasit.com.

Is MYR150,000 allowed to get any interest or does it just depreciate during 10 years?

 

[AbdulBasit.com]

Thank you for your exhaustive explanation, @AbdulBasit.com.

Is MYR150,000 allowed to get any interest or does it just depreciate during 10 years?

You get interest on full MYR300,000 and the remaining MYR150,000 as well when/if you withdraw it. Can make FD in any bank in Malaysia of your choice so no restriction on it.

 

[Kai W.]

NICE, I'm going to FINALLY start visiting Asia next year because there is where I belive I have the highest chances of moving permanently to, ranked would probably be: Philippines, Indonesia (damn those earthquakes), Vietnam, Thailand (a lot of foreigners here, but I can't exclude it) & Singapore if I'll have the money.
That's my motivation at this moment.

Very happy for you!

Shouldn't go to China for the first time?

 

[eternaldomains]

Should've known that I'll end up triggering things the moment I mention a certain something.

Haven't been in NP for a while since I was dealing with several d@mn3d issues (including a cursed auction)

1st things 1st, before anyone else gets any ideas of moving to M.Y. for the tex.....

WARNING: Do NOT simply assume that ALL foreign income is tax free!!!

Not all written laws are 100% black and white and that's why there are courts making things like "landmark decisions" that will cause laws to be "interpreted differently". So do NOT take written laws at face value!

I don't know who told you this, whether that person has elaborated enough or may have assumed certain things when saying that to you, how you structure your payouts, etc... so the most I can do is to make comments based on assumptions.

TL;DR version: If the person who told you this isn't a lawyer who's well versed in M.Y. laws, and especially if you have already banked in the recent payouts to a bank here, you better get a real lawyer soon and find out thoroughly from them.

Everything that I'm going to tell you next is based on pure memory of what I've researched a few years ago, and disclaimer: I'm NO lawyer.

1) the problem with that law is this part, "income earned/received from outside M.Y.", because there are no precise info on what's really considered "income earned/received from outside M.Y."

2) there was at least an article (URL lost, didn't keep it) about a gov. underling claiming that, if you're inside the country while earning money online from a foreign company, you're still considered to be earning income INSIDE M.Y. There are people warning against assuming this tax free status.

3) that very law was made long ago when many local citizens were physically working in other countries and bringing that income back home to their families and that's why it's tex free, because back then it was so damn easy to identify that the income really came from foreign sources. Now, things are getting more ambiguous & complicated, & the gov. wants more $$$ if they can get their hands on them.

4) it might be different if you have an entity in L/A/B/U/A/N (Sabah), but that's something I didn't research much on.

BUT, if you're still receiving income only to your Pakistani bank and then simply transferring that here, then you're probably good to go (the Pakistan gov. doesn't tex you on domain sales all these while right?) and you can probably ignore everything I've said above.

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On a side note, about Pakistan tex, are/were you earning there as an individual or as a biz entity?

 

[AbdulBasit.com]

Should've known that I'll end up triggering things the moment I mention a certain something.

Haven't been in NP for a while since I was dealing with several d@mn3d issues (including a cursed auction)

1st things 1st, before anyone else gets any ideas of moving to M.Y. for the tex.....



Not all written laws are 100% black and white and that's why there are courts making things like "landmark decisions" that will cause laws to be "interpreted differently". So do NOT take written laws at face value!

I don't know who told you this, whether that person has elaborated enough or may have assumed certain things when saying that to you, how you structure your payouts, etc... so the most I can do is to make comments based on assumptions.

TL;DR version: If the person who told you this isn't a lawyer who's well versed in M.Y. laws, and especially if you have already banked in the recent payouts to a bank here, you better get a real lawyer soon and find out thoroughly from them.

Everything that I'm going to tell you next is based on pure memory of what I've researched a few years ago, and disclaimer: I'm NO lawyer.

1) the problem with that law is this part, "income earned/received from outside M.Y.", because there are no precise info on what's really considered "income earned/received from outside M.Y."

2) there was at least an article (URL lost, didn't keep it) about a gov. underling claiming that, if you're inside the country while earning money online from a foreign company, you're still considered to be earning income INSIDE M.Y. There are people warning against assuming this tax free status.

3) that very law was made long ago when many local citizens were physically working in other countries and bringing that income back home to their families and that's why it's tex free, because back then it was so damn easy to identify that the income really came from foreign sources. Now, things are getting more ambiguous & complicated, & the gov. wants more $$$ if they can get their hands on them.

4) it might be different if you have an entity in L/A/B/U/A/N (Sabah), but that's something I didn't research much on.

BUT, if you're still receiving income only to your Pakistani bank and then simply transferring that here, then you're probably good to go (the Pakistan gov. doesn't tex you on domain sales all these while right?) and you can probably ignore everything I've said above.

======================================
======================================
======================================

On a side note, about Pakistan tex, are/were you earning there as an individual or as a biz entity?

So in short, are you trying to say that I'm liable to pay tax on my domain income which is coming from foreign?

In Pakistan, I was earning and registered as an individual.

 

[WatchDogue]

Best wishes in your new locale and with your always impressive domain endeavors!

 

[Abdullah Abdullah]

All the best @AbdulBasit.com ,

 

[eternaldomains]

So in short, are you trying to say that I'm liable to pay tax on my domain income which is coming from foreign?

I cannot say that you are, AND I cannot say that you are not as well. Again I must say that I'm NOT a lawyer. I didn't earn enough so I don't have any real experience on this to be certain.

I made a quick search, here are some links for you:

See the comments section on this:

old(dot)liewcf(dot)com/how-to-pay-income-tax-online-using-cimb-clicks-3597/

Many commenting users giving conflicting info, some saying yes, some saying no, some saying that it only applies to residents. (And FYI non tex-residents generally pay more on texas if they have to pay unless they're rendering professional services, and that carries it's own set of definitions, however, domaining is definitely not considered under "professional sevices")

www(dot)3ecpa(dot)com(dot)my/resources/malaysia-taxation/malaysian-taxation-on-foreign-sourced-income/

Operations of business carried on in Malaysia

Determining the locality of the source of income can be complex and contentious. There is no universal rule that can be applied to every scenario to determine whether an income is Malaysian-sourced or foreign-sourced. It depends on the nature of the profits and of the transactions which give rise to such profits.

Some of the factors that should be taken into consideration to determine whether a business is carried on in Malaysia are:

Whether contracts are concluded in Malaysia;
Whether stocks are maintained in Malaysia from which orders are fulfilled;
Whether the passing of ownership and risk of trading stocks in Malaysia;
Whether proceeds of sales are received in Malaysia;
Whether services are rendered in Malaysia.

These factors are not conclusive on their own and must be considered collectively.

Use Google translate to check this one:

iceclim(dot)blogspot(dot)com/2008/05/blog-post_01.html

The so-called "foreign income" must meet several conditions:

Related services must be provided and completed abroad. That is to say, the service you provide for a foreign income must be completed abroad, referring to the entire service process!
You have to have a working platform abroad. That is to say, you have a similar studio in the local area and the related work is there. We call this the Permanent Establishment.
The relevant “foreign income” has already been taxed/paid in the relevant countries. That is to say, the money you bring in is your net income, you can safely bag.

Now let's take a look at the fact that the Malaysian blog's incoming money from the country's foreign exchange does not meet the above conditions:

I believe that the so-called income is due to the effectiveness of the advertising placed on the blog, the accumulated commission. Then ask yourself: Where are you when you build your website? Where are you when you write an article for the blog? These are the service processes you provide!
I think most blogs are "working" at home. Otherwise, it is written in the coffee shop/restaurant in all corners of Malaysia.

It's unfortunate that most sites focus only on blogs since so many locals are into blogs, but it's still online-income-related so it's best not to ignore. And it seems that those who do earn enough ended up paying texas.

My only suggestion to you is that you do NOT associate any of your current online income with anything M.Y. related if it's possible (always stick with is already proven to work, and that is your connection as a Pakistani citizen with online income tex free status).

But if that's no longer possible then I suggest that you get a good lawyer. It's better to spend some and get a true peace of mind than to risk getting a surprise tex fine.

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In Pakistan, I was earning and registered as an individual.

Do you have knowledge if the zero-tex-online-income (in Pakistan) also applies to biz entities and especially foreign biz entities?

 

[Anees Ahmad]

وعليكم السلام

That's brave decision you've taken. Wishing you all success. GBU brother.