21 June 2017
MALAYSIA: Tax Evading Expats Face Entry / Exit Ban as of 1 July
Any overseas worker who fails to pay their due tax liabilities will be barred from entering Malaysia or, if still resident, from leaving. As of 1 July, this ruling will apply equally to those discovered to have understated or misrepresented their tax liabilities as well as to those who have existing tax arrears.
In order to implement this new protocol, the Inland Revenue Board (IRB) will now be working in tandem with the Immigration Department to ensure overseas workers cannot avoid paying their due tax. The IRB will also be taking a more stringent approach to auditing the accounts of any company employing overseas workers, with fines, blacklisting and prison sentences threatened for any organisations/individuals found not to be in compliance with the country’s tax requirements.
The measures follow recent reports that, over the last five years, more than RM213 million (US$50 million) in unpaid income tax remains due from overseas workers who have already exited the country.