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.