Oleh AZIZAM AZIZAN
Is Your Employment Pass Worth the Tax? Why 2026 is the Year to Switch to PVIP or MM2H Platinum
With the upcoming RM20,000 minimum salary requirement for Employment Pass (EP) in 2026, many business owners and international professionals are doing the math. At Malaya Corporate, we’ve crunched the numbers, and the results are eye-opening.
If you are running a business in Malaysia, staying on an Employment Pass might be costing you a fortune in “burnt money.
The "10-Year Tax Trap"
Let’s look at the reality of a RM20,000 monthly salary. When your income hits this bracket, your PCB (Monthly Tax Deduction) increases significantly due to Malaysia’s progressive tax structure.
Estimated Monthly Tax: Roughly RM3,500 – RM4,000 (depending on tax reliefs).
Annual Tax Bill: Approximately RM42,000 – RM48,000.
10-Year Total: You are looking at paying over RM450,000 just in taxes!
In 10 years, that is nearly half a million Ringgit gone. That amount is enough to purchase a high-end property or a luxury asset in Malaysia. Instead of building your wealth, you are simply paying for the “right to stay.”
The Smart Alternative: PVIP or MM2H Platinum
For business owners and investors, there is a more strategic way to maintain residency without the heavy tax burden of a high fixed salary.
Why We Are Advising a Shift in Strategy
At Malaya Corporate, we believe in quality over quantity. The 2026 policy change acts as a natural “quality control” for the industry. Our advice to clients is simple: Stop paying for a permit, and start investing in your residency.
Wealth Retention: Transitioning to PVIP (Premium Visa Programme) atau MM2H Platinum allows you to manage your income more efficiently (e.g., through dividends), potentially saving you hundreds of thousands in tax over a decade.
Peace of Mind: You no longer have to worry about the hassle of EP renewals or changing government policies every two years.
Asset Building: Funds placed in an MM2H Fixed Deposit remain your asset, earning interest while securing your future in Malaysia.
| Feature | Employment Pass (EP) | PVIP / MM2H Platinum |
|---|---|---|
| Salary Requirement | Min RM20,000 (Mandatory) | Flexible / Not required |
| Tempoh | 1–2 years (Renewable) | 20 years (PVIP) / Life-long (MM2H) |
| Tax Impact | High PCB (RM40k+ annually) | Tax-efficient (Structure your own income) |
Final Thoughts
If you are projected to pay RM450,000 in taxes over the next 10 years just to maintain an Employment Pass, it’s time to rethink your strategy. Moving to a premium residency visa is not just a migration move; it’s a smart financial decision.
Want to see a personalized cost-comparison? At Malaya Corporate, we specialize in helping foreign investors navigate Malaysian corporate law and immigration pathways. Contact us today for a consultation.