KCLau's Money Tips Forum

[tsschin]

Dear All,

Could anyone let me know what is the Malaysian taxation regarding interest earned on fixed deposits in local banks here.

Is it true that interest earned from the first RM100,000 capital are exempted?

If so, I have 2 fixed deposit accounts in 2 different banks, each amounting to RM60,000.00

I would like to leave these accounts alone to them compound into the future years. Could you let me know what are my tax implications here?

Any reply will be appreciated. Thank you.

Tim

[sh33poh]

Hi there..

For interest income received by individuals from moneys deposited in all approved institutions, it will be fully exempted from tax with effect from 30 August 2008. There is no threshold or condition on the fixed deposit ("FD") amount for the interest income received to be exempted (prior to this, exemption is :

a) up to RM100,000 placed in approved institutions for FD placed less than 12 months.
b) full exemption of interest income received from FD account that is held for 12 months or more.)

You may referred to here:
http://www.hasil.gov.my/lhdnv3e/individuIndex.jsp?process=21000&menu=2&expandable=1&pg_title=Tax%20Exemptions

Hope you will get my message even though I'm a lil late (just signed up after received KCLau's email.. =P).