Malaysia offers income tax exemption for foreign workers

Malaysian Deputy Prime Minister Ahmad Hamidi has announced that the tax should be paid by employers on behalf of foreign workers.

The Malaysian government also made it clear that employers were fully responsible for their workers from the time of their recruitment to the time they returned to their respective countries.

It is estimated that about 2.1 million foreign workers in Malaysia will benefit from the new decision by the Malaysian government.  This new decision is expected to lure more foreign workers to Malaysia, easing labor shortages in the fields of construction, manufacturing and services.