Switchover from DP to EP

Last activity 18 August 2018 by asimkp

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asimkpNew member18 August 2018 03:07:17

Hi,
We moved to Malaysia couple of years ago. I am on EP and my spouse is currently on DP. She is now looking for jobs and we need some clarification on malaysian DP to EP switchover processes. I have tried searching the forum but couldn't find required information and hence created a new post.

1. Is exit from Malaysia necessary for DP holder to convert DP to EP category II/III?
2. Once on EP from DP, will it be necessary to pay Non Resident tax of 28%?
3. Will it be required to serve cooling off period of three months on change of employer and switching from EP III to EP II?

Note - DP holder is in Malaysia for more than 2 years.

Any help in this regard will highly be appreciated.

Thanks,
Asim.

GravitasViP18 August 2018 03:51:07

9040

1. I dont think exit is required although there was a rule before - but so few people manage to get a job offer it would be hard to verify this.
2. Yes once having earnings the normal tax rules apply and 28% flat rate payable to start with
3. There is no cooling off for anyone if moving from Cat III to Cat II

https://esd.imi.gov.my/portal/pdf/TC-ES … r-2017.pdf

From what I have seen, foreigners who do manage to move across to an EP frequently quit their jobs after about one year because they find the working conditions etc. too tough.

asimkpNew member18 August 2018 04:10:39

@Gravitas - Thanks for swift response. That clarifies the doubts.
From the document you shared, cooling off period is to be honoured only in below two cases -
1. when switching an employer under same EP Category III visa i.e from EP category III to EP category III
2. Switching for Visit Pass(Temp Employment) to EP(all categories)

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