Quick answer: Approved Global Services Hub companies can ask for a special 15% income tax rate for up to three non-citizen individuals in C-Suite positions who earn at least RM35,000 in basic monthly salary. The executives must be Malaysian tax residents for each of three consecutive years of assessment. The application is submitted together with the Global Services Hub application, and approval is not guaranteed.
- Rate: 15% for three consecutive years of assessment.
- Up to three non-citizen C-Suite individuals.
- Basic monthly salary of at least RM35,000.
- Apply together with the Global Services Hub application.
- Budget 2027 did not change this rate.
Your Questions Answered
What is the 15% rate?
Approved Global Services Hub companies can ask for a special 15% individual income tax rate for selected expatriate executives. It sits on top of the company incentive, and it is considered together with the company's Global Services Hub application.
Who can claim it?
Up to three non-citizen individuals who hold a C-Suite position and receive a basic monthly salary of at least RM35,000. Each must be a Malaysian tax resident for each year of assessment across the three consecutive years.
How long does it last?
Three consecutive years of assessment.
How do you apply?
The company submits the individual application together with its Global Services Hub application to MIDA, online, before the project starts. The special rate can be considered, so approval is not automatic.
Did Budget 2027 change it?
No. The Ministry of Finance's Budget 2027 tax measures say the Global Services Hub proposal does not change the 15% individual rate.
Hiring a regional executive? We will check the individual rate with the hub application.
Eligibility Checklist
- The company has, or is applying for, an approved Global Services Hub incentive.
- The executive is a non-citizen in a C-Suite or key position.
- Basic monthly salary is at least RM35,000.
- The executive will be a Malaysian tax resident in each of the three years.
- The individual application goes in with the Global Services Hub application.
- No more than three individuals are nominated.
Frequently Asked Questions
More questions on the executive tax rate.
What is the Global Services Hub 15% individual tax rate?
A special 15% income tax rate for up to three non-citizen individuals in key or C-Suite positions at an approved Global Services Hub company.
Who qualifies for the 15% rate?
A non-citizen who is a Malaysian tax resident, holds a C-Suite position and receives a basic monthly salary of at least RM35,000.
How many executives can claim it?
Up to three non-citizen individuals may be considered.
How long does the 15% rate last?
Three consecutive years of assessment.
Do I need to be a tax resident?
Yes. The individual must be a Malaysian tax resident for each year of assessment across the three consecutive years.
When do I apply?
Submit the application for the special individual rate together with the Global Services Hub application.
Is approval guaranteed?
No. The special individual rate can be considered, and approval is at the discretion of the committee.
Did Budget 2027 change the 15% rate?
No. The Ministry of Finance's tax measures say the proposal does not change the 15% individual rate.
Does the individual rate apply to Malaysia Digital?
No. It is a Global Services Hub benefit. The MD guidelines do not offer a special individual rate.
What is the normal Employment Pass requirement for such an executive?
An executive at this salary is in Employment Pass Category I, which has a minimum basic monthly salary of RM20,000. See our salary guide.
About This Guide
This guide was prepared by Neutral Consulting PLT, a Kuala Lumpur firm of chartered accounting and advisory professionals with 10 years in practice. We help foreign and local companies set up, stay compliant and hire talent in Malaysia. Every figure and rule here was checked against the official sources listed below in November 2026.
Sources
Official sources
- MIDA, Global Services Hub Tax Incentive guidelines
- Ministry of Finance, Budget 2027 tax measures
- Immigration Department (ESD), Revised Employment Pass Salary Policy
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with MIDA and the Ministry of Finance, or with us, before you act. Checked November 2026.
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