KUALA LUMPUR: The Government hopes to woo more Malaysians working overseas by offering them an income tax rate of 15% for five years under the Returning Experts Programme (REP), Datuk Seri Najib Tun Razak said.
The Prime Minister also said a new Residence Pass would be introduced for highly-skilled foreign workers, which would allow them to stay in Malaysia for 10 years.
He added that the REP would offer greater emphasis on relevant work experience as opposed to qualifications.
The returnee will also be allowed to buy two locally-assembled vehicles tax-free compared to being allowed to import two cars, as previously practised.
“I hope the changes will encourage more Malaysians with expertise to return to play an active part in the economic transformation,” he said at the opening of the Invest Malaysia 2011 conference yesterday.
He also launched the second Capital Market Plan (CMP2) which will cut red tape in financial services and launched a private pension fund framework.
Meanwhile, Talent Corp Malaysia Bhd (TalentCorp) said the transitional income tax incentive under the REP was to target higher value talents to return to Malaysia.
The incentive only applies to employment income for the first five consecutive years on their return to the country, and can be claimed commencing in the 2012 assessment.
Diploma holders with at least 10 years of overseas work experience can now qualify for the REP if they have the relevant industry experience in a National Key Economic Area (NKEA), it said. Previously, they had to be degree holders. Bernama
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