#PASSIVE INCOME TAX FOR FREE#
#PASSIVE INCOME TAX HOW TO#

Malay people have it good with ASB, but the rest of y’all have to research a bit more on brokerage fees that’ll eat into your income

Choose the right vehicles for you – probably the hardest part.

I’m grouping a few types of investments here because they’re similar: Mutual funds (ASB, ASW, etc), fixed deposit, unit trust, stocks/shares from blue-chip companies that give dividends (big, stable companies that everyone has heard of), ETFs (Exchange-Traded Funds) and REITs. Pro: Lower start-up cost infinite income potentialĬon: Most IP don’t make much money due to too much competition piracy lack of marketing/advertising Passive Income Malaysia #3 – Lower Risk Investments

Receive royalties when people buy/use it.

Market/advertise the heck out to the target audiences.

Package it to the right target audience.Make said intellectual property and trademark it/proof ownership (stealing happens).Research what’s in demand (commonly overlooked).To make it ‘passive’, you can outsource and/or automate this. To make this profitable, networking/marketing/advertising efforts must be ongoing so you can expose the product to new audiences.

What this entails: Create/make software, apps, websites, books, songs, graphics, photographs and sell them on online platforms (either directly or via advertising revenue). Passive Income Malaysia #2 – Intellectual Property Similar to above, but the property management team will do the work for you.

#PASSIVE INCOME TAX FOR FREE#

Pro: If you get tenants for the whole duration of the mortgage, you are essentially getting the property for free by the end of the term.Īlternative: REITs (Real Estate Investment Trust). Receive rental checks monthly or according to agreed schedule.Hire property manager to look after the property (optional, but not uncommon.Hire property agent to handle rental inquiries and draw contracts.Renovate it (optional, but common in order to attract tenants and get good price).The (oversimplified) steps if you want to do this type of passive income: To make this profitable, the amount of rent must exceed the amount of monthly/yearly payments you make (not just mortgage, but also insurance, taxes, etc). What this entails: Buy and rent out property spaces to tenants. To the best of my ability, I have researched all the possible ways to earn passive income in Malaysia. I think that’s true! 6 Types of Passive Income in Malaysia They say that true financial freedom comes when you can quit your active income and rely on your passive income.

#PASSIVE INCOME TAX HOW TO#

For example, RM2.4 million will generate you RM10k monthly income for life (Related: How to Get RM10000 per Month in Passive Income.) When you can’t work – by choice or by force – this will be the money to keep you going. It is important to have a few steady sources of passive income. Which is cool, because then you get to do the funner things in life. There is upfront effort/cost to start it, and there might be some ongoing work to maintain it, but after that, for the most part you can leave them to do their thing. Note: No passive income in Malaysia is totally passive. It requires inactive participation – perfect for lazy smart people.

Passive income, on the other hand, requires one-time massive work, then will generate income ‘as you sleep’.My writing business is an example of this. Active income is income derived from constant effort, on an ongoing basis.Passive income meaning – how is it different from active income?įirstly let’s make the distinction between passive and active income: This guide will help you to navigate most, if not all available options and help you decide which ones to consider doing, based on your interest and/or skillset.Īt the end of this article, I’ll also share the passive incomes that I personally have. There are many ways to earn passive income in Malaysia.

Passive income tax