Employees who are given special tax incentives:

Iskandar Knowledge Worker

The Iskandar knowledge worker program is designed to encourage development in the Iskandar region in Johor.

An employee under the Iskandar knowledge worker program will be taxed at a flat rate of 15%.


To qualify for the knowledge worker program an employee needs at least a bachelor’s degree and several (5-10) years’ experience in a relevant field of work.

There is no requirement for Malaysian citizenship.

The employee must be working for an approved company within the Iskandar zone and apply by 31 Dec 2020.

The Iskandar knowledge worker programme is limited to companies working within 9 sectors:

  1. Biotech

  2. Green tech

  3. Education

  4. Creative

  5. Healthcare

  6. Global business services

  7. Logistics

  8. Tourism

  9. Motorsports

For a full list of conditions see Iskandar Knowledge Worker Tax Rate Scheme

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Some frequently asked questions...

Employees under the Returning Expert Program in Malaysia enjoy the following tax incentives:

  • Flat tax rate of 15% for five years (as opposed to 25% typically).
  • Tax exemption for a car, with a maximum value of RM150,000.
  • Tax exemption for personal effects brought into Malaysia, limited to one shipment.

To qualify for the Returning Expert Program, an employee must:

  • Be a Malaysian citizen.
  • Reside and work abroad continuously for at least 3 years at the time of application.
  • Not earn employment income in Malaysia continuously for at least 3 years leading up to the application.
  • Hold at least a diploma qualification, possess relevant working experience, and have a monthly salary equivalent to at least RM20,000.

The Iskandar Knowledge Worker Program in Malaysia is limited to companies operating within the following 9 sectors:

  • Biotech
  • Green tech
  • Education
  • Creative
  • Healthcare
  • Global business services
  • Logistics
  • Tourism
  • Motorsports

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