06 Jul 2015 12:00:00 AM

How to Claim the REP Benefits

  • OPTIONAL FLAT TAX RATE
    Optional 15% flat tax rate on chargeable employment income for a period of five consecutive years.

    Deduction of 15% Flat Tax Rate

    Agency Inland Revenue Board (IRB)
    Purpose To exercise the 15% deduction on employment income (Beneficial for applicant earning RM12,500 per month (gross employment income) or RM135,000 per annum (total chargeable employment income))
    Related documents EA Form

    Note:

    • PCB will be deducted at 15% by the employer before the REP expiry date.
    • 15% will be taxed from annual chargeable income after submission of tax return.
    • If there is any surplus paid to IRB, the amount will be refunded to applicant.
  • TAX EXEMPTION ON CAR
    Purchase of one (1) new locally manufactured Complete Knocked Down (CKD) or bring back one (1) fully imported Complete Built Up (CBU) car per successful application exempted from duty/taxes up to a maximum of RM150,000 worth of duty/taxes.

    Requirements for applicants looking to bring back CBU car from abroad;

    • The car must be owned for at least 9 months before submission of the REP application.
    • The car must be registered under REP's applicant name.
    • The car must be registered in the same country from which the applicant is applying from, for the REP (domiciled - based on overseas correspondence address when applying for the REP).


    Claiming the CKD/CBU Cars Tax Free

    Agency Tax Analysis Division (Bahagian Analisa Cukai), Ministry of Finance (MoF)
    Purpose Exemption for the purchase of one (1) locally assembled / manufactured Complete Knocked Down (CKD) vehicles or bringing back one (1) fully imported Complete Built Up (CBU) car
    Related Webpage Register for an account with MoF MyCukai portal to submit your form online. Click here for the link.
  • family benefits
    The foreign spouse and children will be eligible for Permanent Resident (PR) status, subject to approval and at the discretion of the Immigration Department of Malaysia. This PR status is only applicable for Peninsular Malaysia.

    PR Application Process

    Agency Immigration Department of Malaysia.
    Purpose Fast tracking of Permanent Resident (PR) status of foreign spouse / children.
    Related documents The form - Borang Permohonan Permit Masuk IM.4 Pin1/93 - is obtainable from the Immigration Department of Malaysia, Putrajaya.
    Procedures:

    1. Applicant must obtain a valid Approval Letter, Surat Akuan Tarikh Kembali and PR support letters from Talent Corporation Malaysia Berhad (TalentCorp).
    2. Application can ONLY be submitted at Immigration Department HQ in Putrajaya.
    3. Application for PR will be processed at the discretion of the Immigration Department of Malaysia. For Sabah and Sarawak, applicant must have been residing there for a minimum of five (5) years prior to submitting the PR application.
    4. Applicants need to personally submit their completed documents to:

      Jabatan Imigresen Malaysia
      Bahagian Visa, Pas dan Permit
      Tingkat 3 (Podium), Persiaran Perdana
      Presint 2, Pusat Pentadbiran Kerajaan Persekutuan
      62550 PUTRAJAYA 
  • TAX EXEMPTION ON PERSONAL EFFECTS
    Tax exemption for all personal effects brought into Malaysia, limited to one shipment.

    Tax Exemption on Personal Effects

    Agency Royal Malaysian Customs Department
    Purpose To obtain the tax exemption of personal effects brought into Malaysia.
    Related documents The Declaration of Goods Imported form - Borang Kastam No.1 - can be obtained from the REP Secretariat when reporting to TalentCorp or from the Royal Malaysian Customs Department

    Note:

    • Personal effects encompass furniture & fittings, electronic gadgets and other household items.
    • Motorised vehicle do not fall  under the category of personal effects.