Thursday, September 23, 2010

Vblog#68: Part 1 Mike Grover, Tax Specialist Senior Partner of Ernst & Young

VBlog #68: Part 1 Mike Grover, Tax Specialist Senior Partner of Ernst & Young ... Rockwills Malaysia Will Writing Malaysia Estate Planing ... Malaysia Will Writing & Online Rockwills Estate Planning Professional Blog - 24 Sept , 2010

Speaker#5: Mr. Mike Grover
Profile: Tax Specialist, Senior Partner of Ernst & Young in Malaysia, Brunei, Singapore, China, Hong Kong & Australia
Topics#5: Labuan Tax Efficiency and Wealth Planning for Malaysians

Q1: For Expats and their underlying tax issues
A1: it's common for expats coming to Malaysia marrying the locals, when they decide to return to their home country. When the expats pass away, his transfer of estate to his Malaysian wife is not exempted from tax. The Malaysian spouse will suffer from huge losses paying inheritance tax. In UK, it's 40%!!!
To avoid heavy taxes, the recommendation is to place the assets into trust, so that the wife can then enjoy the inheritance tax free.

Q2: We all thought Malaysians are not subjected to inheritance tax, but why you say Malaysians fall into paying inheritance tax if we own property overseas?
A2: Malaysians do not need to pay inheritance tax but if their property is located in countries that has inheritance tax, they are subjected to PAY the TAX. WOW !!! THIS IS SOOO DISTURBING TO ME NOW.
However, the inheritance tax does not apply to movable assets (shares, cash, unit trust etc)

It's so simple to side step and avoids the tax - plan ahead and structures your assets

Key point: there's a time to make money, there's a time to protect your money. Plan ahead to protect your money from the claws of the IRB.

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