Foreign independent contractors must submit IRS Form W-8BEN or W-8BEN-E to certify their foreign status and claim any applicable tax treaty benefits. The US company may also need to file Form 1099-NEC if certain conditions are met, though this is more common for domestic contractors.
Similar to any employees in Malaysia, foreign employees receive all the protections in the Employment Act 1955.
However, the IRS doesn't require a company to withhold taxes or report any income from an international contractor if the contractor is not a U.S. citizen and the services provided are outside the U.S. filing forms 1099 is required if: The contractor is located internationally but is a U.S. citizen.
Requirements & Steps to Hire Expats in Malaysia There are 4 Stages in the Whole Process: STEP 1: Registering Your Company. STEP 2: Activating Your Account. STEP 3: Expatriate Application via MYXpats CENTRE. STEP 4: Passport Endorsement & Collection at MYXpats CENTRE. Additional Notes on Visa Application:
In Malaysia, foreign workers can be employed in the manufacturing, construction, plantation, agricultural, services and domestic help sector.
Those wanting to live and work in Malaysia for an extended period will need to obtain a residence visa or work permit prior to their arrival.