DIGITAL NOMAD

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Join the De Rantau Nomad Pass Facebook Group HERE (applicants only)

EXCLUSIVE DE RANTAU NOMAD PASS Q&A

NOMAD PASS:

1. With the multi-entry Nomad Pass, is there a limit on the number of entries?
There will be no limit on the number on entries with the multi-entry Nomad Pass.

2. Will there be restrictions for remote workers taking on local contracts after arriving in Malaysia?
We highly recommend remote workers taking contracts from local companies to convert their pass to an Employment Pass.
The local company hiring them as remote worker should be the ones responsible for the application of the Employment Pass application.

3. What are the tax implications for freelancers and independent contractors with local clients?
Local companies hiring foreign freelancers and independent contractors are subjected to Withholding Tax (Seksyen 109A dan 109B of the Tax Act).

4. As the listed domain of professions is quite broad, are there any other specific criteria or restrictions that can affect eligibility?
MDEC welcomes IT and digital professionals to apply for the DE Rantau Nomad Pass.
Those who are able to prove that they are working in the IT and Digital domain, they should be eligible to apply for the pass.
Other criteria that may affect eligibility includes the inability to prove that your status as a freelancer or a remote worker, and the inability to produce the mandatory supporting document e.g. employment contract, purchase orders, and proof of income.

5. As the Nomad Pass is open to all foreign nationalities, will protected persons or UNHCR holders be eligible?
The protected persons or UNHCR holders are eligible to apply as long as he/she has valid passport.

6. How is the length of the visa determined (currently shows 3-12 months) and is the RM1,000 cost prorated or a set fee regardless of visa length?
The fee of RM1,000 is fixed, regardless of the length of pass. The length of pass is determined based on contract validity period (minimum of 3 months validity).

7. Can a participant (or spouse/children) travel from another country back into Malaysia with less than 6 months validity on their passport?
It is an international rule that passport validity must be valid and more than 6 months for travelling purposes. (you will need a passport with 14 months validity to apply for the visa)

8. If a passport is lost or stolen while a participant is in Malaysia or abroad, what is the process/cost of issuing a new Nomad Pass on the new passport?
Once a new passport has been obtained, the individual may submit the new passport with police report from the Royal Malaysia Police (PDRM) to process the “Transfer of Endorsement (TOE)”. The cost incurred will be be a visa charge by the Immigration (varies according to the nationality).

TAX RELATED:

9. Although foreign sourced income is tax exempt, will nomads that exceed 182 days residency in Malaysia trigger a tax residency status?
MDEC is currently in talks with the Inland Revenue Board of Malaysia (LHDN) on this issue and will issue an updated FAQ soon.

10. If a participant takes on local contracts after arriving in MY, what will the tax implications be?
MDEC is currently in talks with the Inland Revenue Board of Malaysia (LHDN) on this issue and will issue an updated FAQ soon.

11. Is foreign sourced income remitted into Malaysia taxable? (via Western Union, e-Wallet etc)?
MDEC is currently in talks with the Inland Revenue Board of Malaysia (LHDN) on this issue and will issue an updated FAQ soon.

MISCELLANEOUS:

12. How much insurance coverage is required? If you have partial-pay from an employer in Malaysia, will that suffice?
There is no limit imposed on the insurance coverage required. Those who are employed by a Malaysian employer is not eligible for DE Rantau Nomad Pass.

13. Can the sponsor organization be any corporate entity in Malaysia (sole proprietor etc.)? What are the specific requirements/restrictions, if any?
A sponsoring organisation must be a company registered in Malaysia that gets services and awards project(s) to the Digital Nomad. The sponsoring organisation shall sign a personal bond document.
If an applicant is unable to find a sponsor, MDEC shall be the sponsoring organisation. The following terms and conditions apply:
— A deposit is to be paid to MDEC. The amount is similar to the security bond amount. The payment can be made via online transfer or a bank draft.
— An agreement shall be signed with MDEC as a sponsor.

14. Will parents and/or siblings be considered eligible as dependants in the near future?
No. DE Rantau Nomad pass dependants are only for spouse & child/children.

15. What licensing is needed for motorbike rentals? Will international driving licences be needed?
In general, they will need to provide (i) passport; (ii) travel or personal accident insurance; and (iii) local or international driving license. However, additional deposits, requirements and documents may be requested by rental companies at their discretion based on their rental terms and conditions.

16. How will participants/dependants that give birth to children be affected? Will the Nomad Pass be automatically extended until the child gets a passport?
Prior to applying for the DE Rantau Nomad pass for the new born, he/she must obtain a passport.

17. I’ve also been told by an applicant that the payment gateway has been “glitchy” but that’s unverified. Is this a known issue? If so, any workarounds?
We have received completed submissions and payments from applicants via our online platform. We did receive some complaints earlier, but this has been rectified.

All information compiled is for educational purposes only.
No warranties or liabilities are offered in the event of any inaccuracies.
Please contact MDEC for assistance. 

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