Documents & Taxes
Do I have to pay the U.S. withholding tax for my U.S. investments?
As a non-U.S. resident, you will be subject to a 30% withholding tax rate for dividends received from U.S.- listed shares that you own. Any dividends received in your bank account or cash accounts with us will already be net of the withholding tax as our tax agent will facilitate the deduction prior to crediting the dividends into your account. There will be no withholding tax charged for capital gains you made on the U.S. investments.
How much stamp duty do I have to pay for every transaction?
The applicable rate for stamp duty is RM1.50 per RM1,000 of investment amount. For USD-denominated transactions, the stamp duty will be calculated based on the investment amount’s equivalent value in Ringgit Malaysia.
The stamp duty legally binds all the contract notes every time you transact with us, both for Malaysia and U.S. investments. The amount is determined by and payable to the Lembaga Hasil Dalam Negeri (LHDN).
What is W8- BEN?
W8-BEN Form is a form where a non-U.S. resident fill-up to obtain Certificate of Foreign Status of Beneficial Owner for U.S. Tax Withholding. This certificate is used by non-U.S. residents to establish both foreign status and beneficial ownership, and to claim income tax treaty benefits between Malaysia and the U.S. with respect to income received from dividends (amongst other various types of income from U.S. sources).
We are currently working toward enabling our Customer to enjoy a lower withholding tax rate through submission of W8-BEN Form in order to obtain the W8-BEN certificate from the U.S. Inland Revenue Service office.
What are Common Reporting Standards (CRS)?
CRS is a global standard for automatic exchange of information on financial account information between the governments in order to combat offshore tax evasion and protect the integrity of taxation systems.
Malaysia is amongst more than 100 countries or jurisdictions that have committed to CRS. The full list of the countries or jurisdictions committed to CRS can be found via https://www.oecd.org/tax/transparency/AEOI-commitments.pdf
More information on CRS can also be found on Lembaga Hasil Dalam Negeri’s website: http://www.hasil.gov.my/bt_goindex.php?bt_kump=6&bt_skum=2&bt_posi=1&bt_unit=2&bt_sequ=1&bt_lgv=2
Are all Malaysians being considered as Malaysia Tax Residents?
Any person, whether Malaysian citizen or not, who has resided in Malaysia for more than 182 days (or accumulated) during the assessment year is considered as a Malaysian Tax Resident.
If I’m a student or housewife, am I still considered a Malaysia Tax Resident?
Yes, so long you have resided in Malaysia for more than 182 days (or accumulated) during the assessment year.
When am I considered a non-Malaysia Tax Resident?
If you did not reside in Malaysia for more than 182 days (or accumulated) during the assessment year.
What is the Taxpayer Identification Number (TIN)?
TIN is a unique identification number issued by each country’s tax authority to taxable individuals or entities. For Malaysians, TIN is commonly known as “Nombor Cukai Pendapatan” or Income Tax Number, issued by Lembaga Hasil Dalam Negeri (Inland Revenue Board of Malaysia).