Definition

  • 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.
  • Approval Committee Meeting (ACM) has fully operationalized in 2011.
  • IRDA act as Secretariate to Facilitate and evaluate for effective delivery of application.

Implementation Guidelines

  • Who can apply?
    • Malaysian citizen or foreign citizen.
    • Application shall be made not later than 31 Dec 2022.
    • Is employed by a designated company in qualified activity by a designated company.
    • Residing within Iskandar Development Region.
    • Submits application within a 1-year window period from date of employment commencement (start working date).
    • Add-value (expert) to any of the eight (9) promoted sectors (creative, education, consultancies service, healthcare, logistic, tourism, biotechnology, green technology, automotive motorsport).
    • Shall duly with P.U. (A) 344 Income Tax 1967.
  • Definition of Knowledge Worker.
    • Possesses at least:
      • A Bachelor’s or Master’s degree from a recognized university by government of Malaysia with more than 10 years of professional work experience in a qualifying activity (Refer to Schedule Paragraph 6(b) in P.U. (A) 344 Income Tax 1967); OR
      • A PH.D from a recognized university by government of Malaysia with at least 5 years of professional work experience in a qualifying activity (Refer to Schedule Paragraph 6(b) in P.U. (A) 344 Income Tax 1967).
    • Must not have derived employment income at least two (2) years in Malaysia prior to date of application.
  • Definition of Designated Company (Qualifying Activities).
    • Granted the IDR status or MSC status or BioNexus status or any incorporated under the Companies Act 1965 company conducting a qualifying activity (Refer to Schedule 1 in P.U. (A) 344 Income Tax 1967) as its core business.
      • Creative Industries and related services.
      • Educational Services.
      • Global Business Services.
      • Logistic Services.
      • Healthcare Services.
      • Biotechnology.
      • Green Technology.
      • Tourism Services.
      • Automotive Motorsport.
    • Must be located in Iskandar Malaysia.

Submission

  • Application must be made by Employer.
  • Complete Checklist and Forms including necessary evidence and supporting document.

Contact

Iskandar Malaysia Investment Service Centre (IMISC)
Iskandar Regional Development Authority (IRDA),
#G-01, Block 8, Danga Bay, Jalan Skudai,
80200 Johor Bahru,
Johor, Malaysia

Email :
masuana@irda.com.my

Definition

  • Fast track immigration passes, visa and work permit for Strategic Projects in Iskandar Malaysia region.
  • Iskandar Malaysia Expatriate Committee Meeting (IMEC) is appointed as Approval Body by Ministry of Home Affairs on 7 Dec 2011 and fully operationalized in 2012.
  • IRDA act as Secretariat and responsible in the aspect of Expatriate selection while the endorsement of the Employment Pass (DP11) processing will be carried out by JIM
  • Employment Pass Category :
    • Employment Pass Category I and Category II – Key Positions & Term Post

Implementation Guideline

  • IRDA Approval guidelines are align with the Immigration Department Malaysia (JIM) guidelines.
  • Six key sectors recognized by IRDA:
    • Creative.
    • Tourism.
    • Education.
    • Healthcare.
    • Logistics.
    • Global Business Service.
  • Employment pass category approved by IRDA:
    • Employment Pass Category I – Salary RM5,000 above and work contract  ≤3 years
    • Employment Pass Category II – Salary RM5,000 and above and work contract 12 months

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Expatriate Post Application – Stage 1 (DP10 Application)

  • DP 10 is the Employment 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.
  • 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:-
    • IDR-Status Company or;
    • Approved Developer or;
    • Approved Development Manager or;
    • Company with Flagship Incentives Iskandar Malaysia (FIM) or;
    • 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.

Expatriate Post Application – Stage 2 (Issuance of Pass)

  • DP11 is a process of endorsement by Immigration Department to Expatriates who have successfully obtained DP10 approval via Iskandar Malaysia Expatriate Committee (IMEC).

Others Passes

  • Visitor Pass (Professional).
    • 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.
  • Dependent Pass.
    • This facility is accorded to the family members of the expatriate employment pass holders (DP 10). The following are eligible for the Dependent Pass:-
      • Husband/wife.
      • Children under the age of 21.
      • Handicapped/disabled children.
      • Legally adopted children.

Contact

Iskandar Malaysia Investment Service Centre (IMISC)
Iskandar Regional Development Authority (IRDA),
#G-01, Block 8, Danga Bay, Jalan Skudai,
80200 Johor Bahru, Johor, Malaysia

Email:
azmah@irda.com.my
shahfiz@irda.com.my

  • 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.