Malaysia bank adds 5% fees/taxes for international payments?

[Novice]

Hi

I have a client who says that every international payment (through banks, credit card, western union or any other method) has 5% fee/tax added automatically on top of payment.

Any idea what's this fee for?

Also, is trying to avoid paying this fee considered illegal? The client is not that open to talk about it, nor to see if it's actually required (legally.)

 

[Novice]

Anyone with financial/banking system experience in Malaysia?

 

[Runway]

The government decided to postpone taxation of foreign remittances
https://www.aseanbriefing.com/news/malaysia-issues-tax-exemption-for-foreign-sourced-income/https://taxnews.ey.com/news/2022-01...-exemptions-for-resident-taxpayers-until-2026

 

[Golden Fleece]

Malaysia continues to shoot itself in the foot. Too bad. It once had a great residency program. Now it seems intent on driving away both foreign residents and foreign investors.