DP to EP conversion, Timeline and Process

Hi Gravitas,

I tried to find the post in the forum related to DP to EP conversion, however i was only able to find posting for EP to DP
Could you please help me to get me queries cleared...

I have a DP and had performed couple of visits to malaysia, I have got an option to work in malaysia now. So,

1. How long does it take to process my EP, considering im in india also what if i am in Malaysia?
2. What all the complexities in processing the EP while i have a DP.

3. My employer said to come to malaysia on DP and he can process in couple of days to EP, how possible is it and any risks involved
4. which will be the safest and fastest way , is it if i stay in india and get processed EP and then enter malaysia to work, or is it good to travel to malaysia on DP and convert DP to EP.

Please let me know if i could brief you more.

Thanks & Regards,
Karthik G

You have to get the DP cancelled by immigration so you will need to come to Malaysia as the employer suggests. (Its only possible to have one type of Pass at any one time)

However, I would suggest that the employer makes an initial application for the EP before cancelling the DP, just in case immigration are going to reject the application because a Malaysian can do the job so foreign recruitment not required. I think this is typically the way it's done, to avoid cancelling the DP unnecessarily.

Thanks Gravitas for the prompt response.

Are you aware how long will it take to cancel the DP once i reach Malaysia and process the conversion to EP and get it completed.
Also do i have to stay in Malaysia only, during this conversion process?

It's hard to say because there is such a lot of backlog in immigration at the moment. As you are Indian national the process is generally a bit longer as your country requires certain additional steps.

It's quite possible the change from DP to EP will take up to one month to complete. The process is exactly the same as for any other recruitment of a foreign national i.e. there is no short-cut just because you are holding a DP. You will need the same sectoral clearance and of course the company will be vetted to see if they have the appropriate incorporation and also a quota to hire more foreigners.

I don't know what the current situation is, about whether you need to be outside Malaysia while the Stage 1 approvals are being obtained. This was certainly the case for jobs where the salary was under RM5k previously.

What's going to be important, is that there has been a transparent competitive process which the prospective employer will need to demonstrate to immigration to get approval.

If the company makes the initial application they will then be guided by immigration as to what are their requirements. Remembering everything is changing because of the new government. The employer is best placed to make enquiries.

Great Gravitas, i do really appreciate for the detailed explanation.
yeah that cleared my queries. i will have a word with my consultants and would see how good we can proceed.

Hi Gravitas and other helpful forum members

I am in a similar situation. my wife has been on a dependant pass since Jan 2018 and she is in discussion with potential employer.
below are some queries

1. she is eligible for cat 2 visa. will it be required to leave the country when her stage 1 is being processed ?


2.  the company hr claims that the ep can be processed  in 1 week time but now after reading above post I understand this is just stories made up by the HR. it may take up to month for the EP to be issued.

3. As my wife has been in Malaysia on dp for more than 182 days will she be taxed progressively or flat 28% still apply?

if she joins in Nov then she will be less than 60 days of financial year so no tax ...what scenario is applicable ?



thanks in advance for looking into this

regards
TO.

expat0102 :

1. she is eligible for cat 2 visa. will it be required to leave the country when her stage 1 is being processed ?

No

2.  the company hr claims that the ep can be processed  in 1 week time but now after reading above post I understand this is just stories made up by the HR. it may take up to month for the EP to be issued.

First step is for the company to submit the application. If it gets approved by the sectoral body and immigration (i.e. no Malaysian can do the job) then the DP has to be cancelled first and only then can the Stage 2 be processed.

3. As my wife has been in Malaysia on dp for more than 182 days will she be taxed progressively or flat 28% still apply?

The 182 days is about Tax Residency, and as she has not been earning any salary in Malaysia, she needs to qualify according to the normal rules and until about July 2nd 2019 will pay 28%

if she joins in Nov then she will be less than 60 days of financial year so no tax ...what scenario is applicable ?

As she will have a long-term EP with a validity of 1 or 2 years, the 60 day rule is not relevant.

Thanks for your reply Gravitas.

One more query:
The potential employer says that monthly tax will not be deducted at source and that the employee will have to pay tax on their own.  Is this normal ?
Also, why would the company not want to deduct tax at source ?

No its a legal requirement for the employer to deduct tax from employees and pay it to the tax office (LHDN).

Sounds like a dodgy company or one that has not had foreigners as employees. Local Malaysians who don't need immigration passes may have alternative rules. But certainly the tax should be deducted. There are fines for late payment of tax. You could check the LHDN website for more information.

Basically it is going to cost your wife money to get a tax agent to submit the required income tax, when the company should have the infrastructure to do that. Either way, she needs to make the monthly tax payments.

Hi,
This is Rajeev, would like to know is any EP Validity time frame to accept new DP request.
My EP validity is over on 2nd Jan 2019, I am planning to submit DP for my new born baby. Since My EP is valid less than 60 Days, can MDEC accept application to process DP.
or I need to get first Renewal of my EP and then only apply for DP.
Your reply will be highly appreciated. Thanks

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