Malaysia – Public Ruling No 1/2011 and the flat tax rate incentive for returning Malaysian professionals |
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Background
The Malaysian Inland Revenue Board issued a new public ruling (PR), effective from the year of assessment 2011. The PR explains the tax treatment of employment income derived by employees from Malaysia who are seconded by their employer to perform duties outside Malaysia. The treatment does not apply to Malaysian citizens employed in public services or a statutory authority.
It was also announced that returning Malaysian professionals may be eligible to a flat rate of 15% income tax for five years, beginning from the2012 year of assessment.
