taxnews.ey.comPrint

11 July 2023

Malaysia updates Labor Market Testing requirements for Employment Pass applicants

Effective 15 June 2023, Malaysian companies that seek to sponsor foreign workers for an Employment Pass (EP), including individuals with specialized skills, must now conduct a labor market test and advertise the job online for at least 14 days prior to filing the EP application. Employers that seek to hire foreign workers to fill available positions in Malaysia must advertise the positions on the Ministry of Human Resources’ national employment portal and conduct interviews with local applicants (e.g., Malaysian citizens) prior to hiring foreign workers and sponsoring them for an EP. Employers may only submit EP applications on behalf of foreign individuals after obtaining approval (i.e., an Advertisement Acknowledgment Letter) from the Malaysian Social Security Organization (SOCSO).

A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.

———————————————
ATTACHMENT

Full text of Tax Alert

Document ID: 2023-1207

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement