The Year 2010 Malaysian Budget proposed for a special 15% tax rate scheme for qualified knowledge workers (returning Malaysians and new expatriates) in Iskandar Malaysia (IM).

Prior to this, there were no preferential income tax incentive for knowledge workers in IM. This measure is aimed at attracting both Malaysian and foreign knowledge workers to reside, work and value-add in the promoted sectors in IM.

Definition of a Knowledge Worker

  1. Possesses at least:
    • A Bachelor’s or Master’s degree from a recognised university with more than 10 years of professional work experience in a qualifying activity; OR
    • A Ph. D. from a recognised university with at least 5 years of professional work experience in a qualifying activity (Refer to Schedule II).
  2. Must not have derived employment income at least two (2) years prior to date of application.

Qualified Knowledge Worker

Knowledge workers must apply to MOF, via IRDA, to opt for this tax rate.

  1. Employed by a designated company in Iskandar Malaysia between 24 Oct 2009 – 31 Dec 2020
  2. Submits application within a 1 year window period from date of employment commencement.
  3. Add-value (expert) to any of the eight (8) promoted sectors

Designated Company in Iskandar Malaysia

An IDR or MSCor BioNexus status company or any company conducting a qualifying (Refer to Schedule I) as its core business. The company must be located in Iskandar Malaysia.

Facilitation for expatriate’s Employment Pass by Iskandar Service Centre

In anticipation of the influx of foreign investors in Iskandar Malaysia, ISC has been working closely with the Immigration Department to facilitate the issuance of employment passes to the expatriates attached to these investors and local companies who may need to employ expatriates.

IRDA has been empowered by the Ministry of Home Affair to process and approve the expatriate’s Employment Pass for investors within the five promoted service sectors in Iskandar Malaysia. This is done through Iskandar Malaysia Expatriate Committee (IMEC), of which ISC is the Secretariat.

There are two categories of services offered by ISC:

  • DP 10 is theEmployment Pass issued by Malaysian Immigration to expatriates who work and draw salaries in Malaysia. The maximum validity of this pass is 24 months for each period. This Pass will enable the expatriate to live and work in Malaysia legally.
  • The application for DP 10 must be made by the employer.  In general, the main qualifying criteria are based on the “core business” of the company. Employers who fit within one or more of the following criteria are eligible to apply for DP 10 via IMEC:-
    1. IDR-Status Company or
    2. Approved Developer or
    3. Approved Development Manager or
    4. Company with Flagship Incentives Iskandar Malaysia (FIM) or
    5. Development / project / business within the following five key sectors recognized by IRDA as major and strategic in nature:-
      • Creative and its related field
      • Healthcare and its related field
      • Tourism
      • Logistics
      • Education
  • The criteria for the employer to qualify for Expatriate Post are:isc-microsite-16
  • The criteria for expatriates to qualify for DP 10 are:-
    1. The appropriateness of the scope of the job in relation to the company’s activity.
    2. Minimum monthly salary of RM5, 000.00
    3. Minimum education qualification of Diploma in any discipline relevant to the designated job.
    4. The applicant age is suitable for the job and has the relevant working experience.
    5. A recommendation letter from the related monitoring agencies is required if the company’s activity falls under the purview of these agencies.
    6. Release letter from a previous employer when switching to a new employer must be presented during application.
  • ISC also facilitates other types of application related to the expatriate’s Employment Pass
  • DP11 is a process of endorsement by Immigration Department to Expatriates who have successfully obtained DP10 approval via Iskandar Malaysia Expatriate Committee (IMEC)
  • Visitor’s Pass (Professional) can be issued to a foreigner with acceptable professional qualifications or specialized skills to enter Malaysia and take up professional work for short term period not exceeding twelve (12) month.
  • These pass holders are however prohibited from receiving a salary or any mode of payment in Malaysia.

This facility is accorded to the family members of the expatriate employment pass holders (DP 10).  The following are eligible for the Dependant Pass:-

  • Husband/wife.
  • Children under the age of 21.
  • Handicapped/disabled children.
  • Legally adopted children.

1. WHAT IS MACS?
With the intention to support the economic development of Iskandar Malaysia, MACS is developed to provide fast-track immigration clearance for non-Malaysian investors, business persons and professionals. The scope of MACS service is expanded to frequent travelers among the Citizens and Permanent Residents of Singapore and also for those who are holding relevant long term immigration pass, and frequently travel between Malaysia and Singapore for the purpose of working, studying and staying in Malaysia.

Hence, MACS holders can benefit from faster immigration processing during entry and exit via MACS lanes at:

a) Bangunan Sultan Iskandar, Johor Bahru.
b) Kompleks Sultan Abu Bakar, Tanjung Kupang, Johor.

MACS holders are also exempted from filling up the immigration arrival card (IMM.26).  Entry and exit records to and from Malaysia shall be kept online and the usage of passport pages for stamping will be minimized.

Spouses and dependents (children) of MACS holders are also entitled to apply for this service, provided that they have obtained the relevant immigration pass.

Note: MACS is simply a form of fast-track facilitation and does not act as an immigration pass or visa. Visitors are still required to obtain visa (if applicable) and will be issued with relevant immigration pass.

2. PERIOD OF STAY
MACS holders are entitled to enter and remain in Malaysia according to the duration as stated in the relevant immigration pass issued.

MACS STICKER
There are two (2) types of MACS sticker: –

Category A
a) Issued to Short Term Immigration Pass/ Social Visit Pass Holders.
b) Issued to non-Malaysian daily travelers and for Citizens and Permanent Residents of Singapore who are frequently traveling to Malaysia on social visit purposes.

How to apply?
Applications for MACS under this category can be submitted to MACS branch office in Singapore.

MEVAS ONE STOP CENTRE
No 1, Tanglin Road
#03-10/11/12 Orchard Parade Hotel
Singapore 247905
Tel        : +65 6733 4207
Fax       : +65 6735 5705
E-mail  : general@thirdlink.com.sg

Category B
a) Issued to Long Term Immigration Pass
b) Issued to non-Malaysian daily travelers (involved with the development activities in Iskandar Malaysia) who have obtained long term immigration pass (i.e.: Employment Pass, Professional Visit Pass, Student Pass, Temporary Working Visit Pass) to work or provide related services that shall benefit and contribute to the development of Iskandar Malaysia.

This sticker is also issued to Citizens and Permanent Residents of Singapore who have obtained long term immigration pass (i.e.: Employment Pass, Temporary Working Visit Pass, Student Pass, Professional Visit Pass) which enable them to frequently travel to Malaysia for working, studying and staying.

3. VALIDITY AND FEE OF MACS STICKER
MACS sticker shall be valid for one (1) year from the date of issuance. A RM30.00 fee is charged for every issuance. Payment must be made in the form of cash.

4. REQUIREMENTS

Long Term Immigration Pass Holder/Dependent/Student
a) Completed Application Form (Fill Up Manually)
b) Original Passport (validity must exceed 13 months)
c) Employment/Dependent/Student Pass (validity must exceed 9 months)
d) One Passport Size Photograph
e) Official/Supporting Letter from Company/School/University

Photocopy:
a) The Personal Identification (Passport and I/D)
b) The Employment Pass/Dependent Pass/Student Pass

Malaysia My Second Home (MM2H) or Resident Pass
a) Completed Application Form (Fill Up Manually)
b) Original Passport (validity must exceed 13 months)
c) Employment/Dependent/Student Pass (validity must exceed 9 months)
d) Passport Sized Photograph (1)

Photocopy:
a) The personal identification (Passport I/D)
b) The Malaysia My Second Home or Resident Pass Sticker

Spouse Program (Husband, Wife or Children Of Malaysian Citizen)
a) Completed Application Form (Fill Up Manually)
b) Original Passport (validity passport must exceed 13 month)
c) Relevant Long-Term Immigration Pass (validity must exceed 9 month)
d) Original Marriage Certificate (For Spouse)
e) Original Birth Certificate (For Children)
f) One Passport Sized Photograph

Photocopy:
a) Passport Front Page /Biodata Page
b) Relevant Long-Term Immigration Pass
c) Malaysian Sponsor’s Identity Card
d) Marriage Certificate
e) Birth Certificate (For Children)

Property Owner
a) Completed Application Form (Fill Up Manually)
b) Original Passport (validity must exceed 13 months)
c) One Passport Size Photograph
d) Original Official/Supporting Letter from Developer (Sales & Purchase Agreement/Land Title)
e) Original K Form (Renunciation of Malaysia Citizenship) from National Registration Department (Jabatan Pendaftaran Negara, JPN) for Applicants Who Has Bought a House or Married Before Renunciation of their Malaysian Citizenship
f) Original Marriage Certificate for Spouse (If Name Not Stated In S&P).
g) Original Birth Certificate for Children Under 18 Years Old Only.
h) Visa (If Applicable) – Validity Must Exceed 9 Month

Photocopy:
a) The Personal Identification (Passport I/D) & Latest Entry Stamp/Endorsement
b) Sales & Purchase Agreement/Land Title (Where Applicable) Each Applicants
c) Form K: Renunciation of Malaysia Citizenship from National Registration Department (Jabatan Pendaftaran Negara, JPN) for Applicants Who Has Bought a House or Married Renunciation of their Malaysian Citizenship
d) Marriage Certificate for Spouse (If Name Not Stated In S&P).
e) Birth Certificate for Children Under 18 Years Old Only.

5. MACS APPLICATION COUNTER
Iskandar Regional Development Authority (IRDA)
#G-01, Block 8
Danga Bay, Jalan Skudai
80200 Johor Bahru
Johor, Malaysia
Tel No: +607-2333000
Fax No: +607-2333001

The opening hours:
Sunday to Wednesday
8.30 am – 4.00 pm         Operation Hour
1.00 pm – 2.00 pm         Lunch Hour
8.00 am – 5.00 pm         Office Hour

Thursday
8.30 am – 1.00 pm         Operation Hour
8.00 pm – 3.30 pm         Office Hour

Closed (Friday, Saturday & Public Holiday)

6. RENEWAL OF MACS STICKER
MACS sticker must be renewed before expiry date.  To renew MACS, applicants are required to: –

  • Obtain the hard copy application form at the MACS counter at IRDA office and fill it up manually.
  • Submit the completed application forms and relevant supporting documents at MACS counter at IRDA office.
  • Furnish one Passport Sized Photograph (with light colored background) at the MACS counter.
  • Be present in person during application process. Failure to be present or to complete the application form (including relevant supporting documents) may result in the delay of process.
  • Bring original documents for first time application and each renewal. This is
  • For cases of lost and stolen passports, MACS holder shall follow as above (renewal) procedure.

7. CLIENT CHARTER
Completed MACS application shall be processed on the same working day.

REMARKS:

  • Kindly be informed that thumbprint biometric data will be captured upon registration. Thus, applicants are required to be present in person during application process. Failure to be present or to complete the application form (including relevant supporting documents) may result in the delay of process.
  • Completed MACS application shall be process on the same working day.
  • Please note that PHOTOCOPYING SERVICES ARE NOT PROVIDED at the MACS Counter at IRDA office. Please ensure that all your supporting documentation are duly photocopied before  submitting the application.//