Malaysian Income Tax Reporting For Professional Visit Pass Holders

The Malaysia Inland Revenue Board (IRB) has graded the non-compliance of income tax reporting in relation to Professional Visit Pass (PVP)  holders as one of the common violations and has been actively pursuing the tax audit on the local sponsor. 

PVP is an immigration pass to legalize a foreign individual to work in Malaysia for short term business reasons. Generally, such pass is applied for employees of foreign vendors, suppliers or colleagues from related companies located outside Malaysia as well as young French professionals under The International Internship Program (VIE Program). 

If in any case, your Company has acted as the local sponsor of any PVP holders to Malaysia, you will be regarded as “deemed employer” of these foreign individuals under the Malaysia tax laws.

A deemed employer is required to comply with its tax obligations and any non-compliance of such is a tax offence. 

If you wish to find out more, feel free to reach out to Laurent Varlet (lvarlet@deloitte.com) or Christelle Didesch (christelle@mfcci.com)