Updated date:

Guide to Tax Clearance in Malaysia for Expatriates and Locals

Author:

Born and raised in Malaysia, Mazlan is proud of his Malaysian and Asian heritage and likes to share its mysteries, culture & current issues.

If you want your last month's salary to be credited to your account and not be withheld by the Inland Revenue Office, then read these guidelines on how to make tax clearance in Malaysia for expatriates and local Malaysians.

guide-on-tax-clearance-in-malaysia-for-expatriate-and-local

What is a Tax Clearance?

A tax clearance is a certificate or letter from Malaysian Inland Revenue (LHDN) that says you either do or don't owe any outstanding income tax.

Upon getting this letter, your employer will release the balance of any money withheld from you after you settle the outstanding taxes (if any) as shown in the tax clearance letter/certificate. This money is either be your salary, overtime payment, gratuity or compensation due to you.

The Tax Clearance Letter or Certificate (Surat Penyelesaian Cukai, SPC) applies to both Malaysians and expatriates or foreign workers.

Who Needs to Apply for Tax Clearance?

You need to apply for a Tax Clearance if you are retiring, leaving employment at the end of a contract, resigning, terminated from your employment, or leaving Malaysia for a period exceeding three months. When a taxpayer dies, their next of kin needs to apply.

guide-on-tax-clearance-in-malaysia-for-expatriate-and-local

When to Apply for Tax Clearance?

For LHDN to expedite the issuance of the Tax Clearance Letter, you must apply 30 days BEFORE the expiration of your work contract, your date of resignation or termination of employment, or the date of your departure from Malaysia.

In the case of death, the next of kin must submit the application within 30 days after the date of death.

How to Apply for a Tax Clearance?

To apply for a Tax Clearance, get your employer (usually the HR department) to complete one of the following forms:

  • Form CP21 (if you are leaving the country)
  • Form CP22A (for retirement, resignation or termination of employment if you work in the private sector)
  • Form CP22B (for retirement, resignation or termination of employment if you work in the public sector).

In the case of death, the beneficiary of the deceased taxpayer must inform the taxpayer's employer; then make sure the employer informs LHDN immediately of the death.

The submission can be done online through e-SPC (by the employer only) or manually through the LDHN office that handles your income tax file.

To expedite the issuance of the Tax Clearance Letter, make sure you submit the latest income tax return form. This will update the current status of your tax assessment.

What to Do if You Leave, Resign or Retire Before the Income Tax Return Due Date

If you are eligible for the Monthly Tax Deduction (MTD), and you leave the country, retire or resign before 30th April (Income Tax Return Due Date), then you are not required to submit the income tax return.

For example, if you leave, retire or resign in November 2016, then you don't have to submit a 2016 income tax return (which would be due for submission end of April 2017).

But if the date of departure, resignation, or termination is in 2017, say on 31st March 2017, then you must submit your 2016 income tax return (to be submitted before 30th April 2017). This is to declare your income for the period 1st January 2017 up to 31st March 2017.

If You Are Not Eligible for MTD

If you are NOT eligible for the monthly tax deduction (MTD), then you have to submit your income tax returns for the prior years AND the current year of your departure, resignation or retirement.

guide-on-tax-clearance-in-malaysia-for-expatriate-and-local

What If Your Application for Tax Clearance is Delayed?

Delay in submitting the application for tax clearance may be subject to penalty. Even though LDHN will take the employer to task, it is also your responsibility to ensure this does not happen. And by doing so, you get money due to you as soon as possible.

So, what is the penalty?

The penalty will be in the form of fines between MYR 200 and MYR 20,000 and imprisonment for up to six months.

LHDN might take legal action against an employer who fails to pay the outstanding tax as per the Tax Clearance Letter. So this is no laughing matter.

Tax Guide for the Expat

  • Malaysian Tax Issues for Expatriates and Non-Residents
    If you are an Expat or a Foreign Worker working in Malaysia, but still unsure of the Malaysian Income Tax requirement, then read this article that lists all the things you must know about the tax requirement in the country.

How Soon will LHDN Process My Application?

If you submit all the required documents and there are no further queries, LHDN will process and issue the Tax Clearance Letter within ten working days.

Do You Need to Close Your Tax File?

If you are leaving the country for good or are retiring and will not be receiving any future taxable income then you should close your tax file.

Apply in writing to the LDHN office that handles your file (provided there are no outstanding monies due to LHDN) and ask for your tax file to be closed.

If You Are An Expatriate or Leaving the Country

Additional Income After Your Departure Date

If you are entitled to bonus payments or any additional salary after your departure date, you are required to declare this income, which may be taxable.

Cancellation of Employment Pass

Your employment pass or professional visit pass must be canceled before you leave the country.

Submit your application (done by your employer) to cancel the pass within one month of your departure date.

Do You Have Any Comment?

If you have any comment to make on this guide to tax clearance In Malaysia, or you want to share your experience on tax clearance, let me know in the comments below.

Cheers.

Important Notice on Your Questions

There are instances where questions posted here are already answered in the previous queries by other readers OR the answer is already in the article.

Hence, I will not be replying to those questions.

I will also NOT answer any questions that you send via emails. Any questions, please submit through the comment box.

Thank you for your understanding.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

Questions & Answers

Question: Can I let someone take care of my tax clearance since I'm out of Malaysia?

Answer: Yes, you can appoint an agent to handle this for you.

Question: LHDN is asking me to request my HR for a Tax Borne letter (taxes are borne by me) but HR doesn't want to give it. Do I really need the letter to proceed with the tax refund?

Answer: I don't understand why your HR is refusing this request. LHDN may need this to verify the amount paid as there are cases where such amount although deducted from your salary, is not paid to LHDN.

Question: Do Malaysian expats need to do tax clearance?

Answer: Yes, when you resigned to work aboard, or when you are about to retire.

Question: I have a question about tax clearance in Malaysia. I have submitted all of my tax clearance documents on 18 Dec 2018. As of 4 Jan 2019, I still have not received the Tax Clearance Letter. How can I check on this and who I should talk to?

Answer: Give them 14 working days to reply. Otherwise, go to the office where you submitted your form.

Question: What if the termination is immediate? There is no way to file tax clearance within 30 days.

Answer: You mean your company gave you a 24-hour termination notice? Then give this letter to LHDN as a proof

Question: I am not going to continue my job, and my last day is on July 15th. During this period, I am going back to India for medical treatment for my wife (18 days). Am I eligible for any tax deduction? (182 days not completed).

Answer: Any income is taxable, so you have to file your tax return before your departure date.

Question: My employment pass is canceled, but my income tax is not cleared. Can I still live in Malaysia legally?

Answer: If your visa has expired, you cannot stay legally in the country.

Question: If I have done tax clearance at LHDN, but due to some reason my last day has been extended by another two months, what are the documents I need to prepare for resubmission?

Answer: Same as before, but now to attach a letter from your employer to explain the extension. This two-month extension needs to be within your work visa period.

Question: Can we go to any LHDN office to get the tax clearance letter or only the one who keeps our tax file?

Answer: I think you have to go to the Malaysian Inland Revenue office that keeps your tax file.

Question: if I lost my tax clearance copy, how can I get it from LHDN?

Answer: If you are registered online, you can reprint from your account. Otherwise, you have to request for another copy from LHDN

Question: I got a Tax Clearance Letter from LHDN. My Visa is expiring on 15th Dec 2018. Do I still need to cancel my Employment Pass?

Answer: If you are not going to work here anymore, then you should.

Question: I have submitted all necessary documents to LHDN for my tax clearance, but I have received no reply after fourteen working days. What should I do?

Answer: If you are in a hurry, pay them a visit and bring all the required documents.

Question: I began working in Malaysia on 1st Nov 2018(employment pass) and resigned and my last working day was on 29th Dec. Do I still need to pay tax because I worked for less than 60days?

Answer: Yes, you are exempted from tax.

Question: What if my company delays my tax clearance in Malaysia? Is there a way for me to complain to LHDN and avoid the penalty?

Answer: You can lodge your complaint but not necessarily mean no penalty

Question: I have engineers from my HQ in France working in Sabah. They are working under Professional Visit Pass, and paid in France. Are they liable to pay any income tax in Malaysia?

Answer: If no income is derived from Malaysia, then no.

© 2016 Mazlan

Comments

Mayble on July 11, 2020:

Hi Mazlan,

I received my June Salary and got the June payslip on June 26 and on the June 30 I received the HR letter stating I was retrenched due to company downsizing.

During meeting, the HOD mentioned that termination benefits will be received after 7 days but the amount received is lesser that what being stated in the letter. The HR doing the tax clearance for me and I was being told that they only submit the CP22a to IRB 2 days after I received termination payment. I have request them to email the supporting document but they mentioned they can show, what are those deduction made in July payslip by asking me to come to office to sign July payslip stating I acknowledge it to be true and correct.

I have been doing my own e filing though my earning per year 33K per year.

My question is :

1) can I request the HR to email details of those deduction for my tax purpose?

2) is it common practice to have the July payslip whereas I no longer attached with them?

3) can i check with the IRB if the form have been submitted by my previous employer, if let say they submit late, am i being penalised or how?

Thanks

Kasp on June 21, 2020:

I am an expat who is about to go on cooling off period since I have used the maximum 3 years for Category III visa. My current company intend to re-hire after the cooling off, however, due to the current situation of outbreak, I am afraid to leave Malaysia as I may not be able to return even after the 90 days. I have tried to look for a job that can help me climb to Category II. I got accepted in a new company and currently complying the requirements. Will there be any issue with my tax status or papers especially in applying for a Category II EP considering that I have applied for the CP22, which are for leavers?

Thank you.

Mark on June 19, 2020:

Hi Mazlan, I am an expat and this is my case. I have filed my tax clearance already. However, they gave me a BE form to file my tax for year 2020 (my 2020 shows I got a tax refund). And my refund for 2019 is still pending from them (meaning I haven't received my 2019 refund).

My question is when can i expect to receive my tax refund for 2019 and 2020.

Angel on June 11, 2020:

expat who already left Malaysia last year and receive bonus this year, what category of tax they are? resident or non resident?

DileepKV03 on June 10, 2020:

I am an Indian citizen started job in Malaysia on 22nd April 2019. I am resigned my job and my last employment date is 21st April 2020. I have submitted my tax clearance letter and having a due of 896 RM. Due to Covid, I extended my stay in Malaysia, but I don't have any income in Malaysia. Want me to apply for tax clearance once again? Want me to file tax clearance for 2020?

Mazlan (author) from Malaysia on June 08, 2020:

I am not sure what tax refund you are referring to as regards to expat buying gadgets.

Marie Hortaleza on June 05, 2020:

I am an expat who recently got rentrenched. I am planning to buy gadgets before I go home. Will I still be entitled for a certain amount of tax refund for that? Though I didn't work full year?

Sue on May 03, 2020:

Hi Mazlan,

I am an expat with a talent visa and have decided to return to Europe in July for a year. I contacted a tax consultant who shared that I need a CP21 form from my last employer for tax clearance. However, I thoght this was only for employees who had a visa through their employer. Thanks.

Mazlan (author) from Malaysia on March 10, 2020:

Hi Adam, it is in MYR and from LHDN

Adam yusof hassan on March 06, 2020:

May I know the letter of tax should be shown the value in USD or MYR? and it shoud come from LHDN or ministry of work office?

KCK on December 23, 2019:

Hi Mazlan

I have been working in Sabah for more than 20 years and my HQ is in KL. My last day with the company is 31st Dec and hv need to do tax clearance before the company can release my salary. Can I go to the Inland Revenue in Sabah to do it or do I have to go back to the IRD where my file was opened 20 years ago in West Malaysia in KL ?

Mazlan (author) from Malaysia on December 14, 2019:

Hi Irian. Sorry for this late reply. Well, it is better than not submitting at all. Have you done this now?

Irlan on December 06, 2019:

Hi Mazlan,

I worked in Malaysia for two years (10 September 2017 - 10 September 2019) and I've been back to Indonesia for two months (without processing the tax clearance because my latest company said it's okay to process it after I back again to Malaysia. Now I am in Malaysia to process tax clearance after two month in Indonesia. is it okay? kindly advise, Thank you.

JLLC on June 21, 2019:

Hi! I will finish my contract next 31st july 2019, and in total I have been out of Malaysia for 20 days, and in Malaysia for 184 days. Will I be considered as tax resident? On the 5th of july I will join another company in Malaysia for 2years contract. This can also affect resident status?

If for this period tax clearance I am not considered resident and I have to pay, for next year taxes (after join the new company and stay in the whole 2019 more than 182 days) I am resident, would I get initial tax clearance refunded as I should be considered resident?

Thanks

Gabriel on June 19, 2019:

Hi Mazlan,

After receiving the Tax Clearance letter let's say in year 2017, does it mean that I don't have to keep those old receipts (from year 2010 to 2017)?

Thank you..

Santhosh Sunkari on June 09, 2019:

I have claimed for the year 2017-18 and got the amount in 2019 and now planning to leave the country by june 30th and went to India multiple times due to personal issues in which total of some 130 days only stayed .

But last year i was resident and now again in 2019 do we need to complete 182 days .My Agent is conveying that again have to pay tax and Go .Please help with the query

Thanks

ELWD on June 09, 2019:

Hi - I work as a sole trader/consultant and will be leaving Malaysia in July. How do I apply for tax clearance? Thank you.

Dinesh2211 on June 08, 2019:

Hai, I am a E pass foreign worker and past two years working in Malaysia. Now I want to leave this country with proper tax clearance letter. Last month I gave my resignation letter to the company and they provide tax clearance form 2018, is this enough to close my tax clearance or I want ask tax clearance form 2019. If i am eligible for this year tax(2019) because I didn't complete 182 days this year. Kindly guide me regards this issue.

My Visa closing date is 14-Jun-2019. My flight date is 12-Jun-2019.

Thanks.

Sudhakar on June 08, 2019:

Hai. I am a E pass foreign worker and working for past two years in the company. Now my Visa close on upcoming Friday. So I ask my company for tax clearance last month, but they provide last year tax clearance form (2018), is this enough for leaving this country or pleasr guide me, I want to request this year tax clearance letter from my company... Reply ASAP... My flight date 12-Jun-2019. My Visa closing date 14-jun-2019.

Quan on May 23, 2019:

Hi! I joined my company in Dec 2018. Will I receive the tax return if my last working day is end of June 2019? 182 days for tax return is working days or staying days? What if I resign earlier than 182 days? Thank you!

Mazlan (author) from Malaysia on May 15, 2019:

Hi Gabby. For your information, LHDN and Immigration Department share data of expats working in Malaysia and if you have outstanding or unpaid taxes, you might be barred from leaving the country. So, if you are intending to shorten your notice period, I suggest you visit the LHDN office, pay any outstanding taxes if any, and get them to expedite your tax clearance letter.

Gabby on May 14, 2019:

Have given 3 months notice as is contractual to finish work as an employee of a Malaysian company in KL. However I wish to negotiate with the company a shorter time period time of notice of resignation. Can I leave Malaysia before my tax clearance has been approved, given that my company employer will hold back my last months pay until Tax clearance is given

Mazlan (author) from Malaysia on April 10, 2019:

Jayson, you have to inform the tax department that you are no longer working in the country. Otherwise, in their record, you have not filed in your tax return for the subsequent years.

Mazlan (author) from Malaysia on April 10, 2019:

Yes, that is right. This is assuming that you are an expat.

Jayson on April 08, 2019:

I am an expat fromMalaysia and already in Philippines. The company pays me upto Dec 2018 and they dont pay my leave til Jan 11. I leave Malaysia Jan 20 and my employment pass will expire on July 2019. I asked my company before I leave to settle my tax clearance but they said I should do it but they have to prepare a form. I already filed my income tax return for year 2018. Do i need to inform LHDN that I am no longer working in Malaysia and already back Philippines last Jan 20, 2019? Do i still need to close my tax file?

DADS on April 07, 2019:

Hi Mazlan, I worked in Africa for the whole of 2018. I understand that income from foreign sources is non-taxable. So do I input into the BE form for 2018 as zero income?

Jenelyn barrogo baclas on March 18, 2019:

Me and my turkish national boyfriend planing vacation in malaysia for 3 to 5days,do we need an exit clearance before we leaving malaysia?

Asif on March 15, 2019:

I am working in Malaysia for the past 7 years..I have been a resident in for all years since 2012.

I went to India on 30th Oct 2018 and came back on 26 Feb 2019

I am leaving the country on march 30th for good... will I be considered a resident for 2019 ?

Paolo on March 02, 2019:

Dear Mazlan,

I am a foreigner about to leave malaysia.

I am now in the process of applying for my income tax clearance.

I realized sometimes I used the foreigner e-gate so my passport does not show the necessary stamps to demonstrate I have stayed more than 182 days in Malaysia. Is there any other way I can do? Perhaps showing all my pay slips as I am subjected to MTD?

Thank you in advance for your help.

Yee Kuan on February 19, 2019:

Hi Mazlan,

I'm a Malaysian. My last working day in my former company is on 4th Jan 2019, and i do receive all my salary during end of Jan.

I received my working visa on end of Jan and decided to leave Malaysia to New Zealand on 19th March 2019 for at least 6 months

Do i still need to submit the CP21 form for tax clearance?

Mazlan (author) from Malaysia on January 31, 2019:

You can download the form, fill in as much as you can and give it to your employer to fill in the rest of the info. I suggest you hand it to LHDN by hand as your employer may take awhile to do it.

You can stay in Malaysia as long as the visa is still valid.

Sungeun Heo on January 22, 2019:

Hi. I am a foreign worker in Malaysia. My last day with my company is 20 Feb 2019. My employer did not provide tax clearance form yet to me. By when should I provide the tax clearance form to the LHDN to avoid any fines?

Also, some say that I need to leave Malaysia on the day of my last day which is 20th of February to avoid residence taxes. Is that true? I have already bought the flight ticket for 1st of March. Could I get any advice on this?

Mazlan (author) from Malaysia on January 14, 2019:

Dloris, it is now 2019 and almost 3+ years since you left the company. I think it is best you write to LHDN and seek their guidance.

Mazlan (author) from Malaysia on January 14, 2019:

Teoh, since you worked for more than 60 days, so your income is taxable and hence, you have to do your tax clearance.

Dloris Chew on January 12, 2019:

Hi Mazlan

I'm Malaysia my partner is expart. I left company was 2015. And now I'm not in the country. Which form that I suppose to use?

Thanks

Teoh on January 09, 2019:

Hi Mr,

I have a question.

I'm a malaysian and fresh. I have leave my company since it is 24hrs notice period but i work more than 3 month. And I gave the reason of leaving for the employer is planning to work in oversea. So, the employer want me to do tax clearance with cp21 form since i gave them reason is planning to work abroad. I still fresh don have any tax, my company didn't hold my salary and i still planning to work abroad (havent work yet). So, i must do tax clearance for this situation? or i can ignore it?

Mazlan (author) from Malaysia on January 07, 2019:

Kavisha6, CP22 is the Tax Clearance Form for Cessation of Employment of Private Sector Employees (CP22A) and Public Sector Employees (CP22B). Leaving the country is CP21.

CP22 must be submitted by both local and expat.

Mazlan (author) from Malaysia on January 07, 2019:

Bassel, you left the country for more than 14 days and hence, your earlier 3-month stay cannot be part of your 182-day calculation. So, your 4 months working period is short of the 182 days for resident status.

kavisha6 on January 02, 2019:

Hi mazlan,

Is CP22 submission only for those who are leaving malaysia (expatriate or malaysian to work at oversea) am iright? Does the foreign worker who were categories under direct labor also need to submit the CP22?

Bassel on January 02, 2019:

Hi mr.

I have a question please

I stayed in Malaysia 3 months social pass without working..

I left the country 1 month and then i got back to here and worked for 4 months only

Now i resigned my job before completing the 182 days..

My question do i consider as a resident now? The full period of staying in Malaysia 3 months social pass and 4 months working?

Mazlan (author) from Malaysia on December 30, 2018:

rara, I check the CP22A form and you are to enter your Start Work Date and Date of Stop Work/Retirement/Death. Not sure what is your 01.01.2019 when your date of stop work is 28.12.2018

Mazlan (author) from Malaysia on December 30, 2018:

Tax Clearance Letter is issued within ten working days of receipt of your completed documents. Both you and your employer will get this letter. If you don't receive it by this date, contact the LHDN office that handles your file.

rara on December 28, 2018:

i would like to ask,

We understand that “End date” in CP21/CP22A form has to be as per employee’s termination date however, if EE is terminated in January 2019 retrospectively from Dec 28, then how it should be reported in 2019 CP21/CP22A forms. Currently, start date is showing as 01.01.2019 and end date is 28.12.2018 in CP22A form. Please confirm if this is the right process.

Phanomphon Bunchaiyo on December 27, 2018:

I've submitted tax clearance 12 day ago. My Question is how to check status of tax clearance letter.

Mazlan (author) from Malaysia on December 25, 2018:

Just explain your predicament to LHDN as most companies will do exactly like what your company is doing.

Vijai Ananth on December 24, 2018:

Dear Mazlan,

I'm a Malaysian and currently working for a Malaysian company in Malaysia. I've got a job offer overseas, for an overseas company. My last day of service for my Malaysian company shall be 9th February 2019, and my joining date for my new overseas company is 15th February 2019.

I read that for tax clearance, application has to be done 30 days prior to resignation. As such, since 9th Feb 2019 is my last day of service, my application for tax clearance shall be a month earlier, approx. latest by 9th Jan 2019.

However, my company is claiming that since my last day of service is 9th Feb 2019, they will only proceed to mail me the completed CP21 and PCB2 forms upon payroll lock after 9th Feb 2019.

This would mean that I'll violate the 30 days requirement, but the delay is absolutely due to the company HR and completely out of my control.

Can you advise what I should do? Thank you in advance.

Mazlan (author) from Malaysia on December 15, 2018:

Yes, you should.

Chin on December 13, 2018:

I am an Expatriate and working with my current company since 15 sep 2017. I am resigning from my current job and the last day of my current company will be 11/01/2018 and I am joining new company 1 st of February. Do I have to do my tax clearance?

Mazlan (author) from Malaysia on December 06, 2018:

Your tax clearance

sarah on December 05, 2018:

Hi, I am an expatriate who will be leaving Malaysia in February 2019. Which one comes first - cancelling my EP or do tax clearance?

LLGN on November 09, 2018:

Hi, I got my PVP one month ago and I will stay in malaysia for 12 months but my company in Spain will continue paying my salary. Do I have to pay any tax in Malaysia? My stay will be longer than 183 days

BH on October 12, 2018:

I would like to know if there will be any refund if you exit Malaysia within 3 months. Tax was deducted at 28% for 3 moths.

PEGGY NG on October 02, 2018:

I haven't file CP22 to LHDN while my foreign worker start to work for my company. and my foreign worker never pay any pcb as well as submit income tax thus there is no tax file number with IRB. do i need to obtain tax clearance when my foreign worker leave malaysia?

Sherwin Jumao as on September 23, 2018:

Hi,

Need your help if there's a way to download an authorization letter to get my tax clearance. I already applied my tax clearance on 3 Sept, but I'm currently in the Philippines right now.

I will just authorize my ex colleague to get it for me so they can release my last pay.

Thanks,

Sherwin

Jenna on September 06, 2018:

Hi,

I will be leaving the company without completing the 182 days, will I be entitled for the tax refund?

Anonymous on September 05, 2018:

Hi,

If let say that I am a foreigner and worked in Malaysia before, I have cleared all my tax and currently in cooling period. (I was Residential status). Anytime I come back to Malaysia for working again, will I get 28% tax deduction?

Charles on August 29, 2018:

Due to family urgency, I left Malaysia and my employment has expired(2 years before). I didnt have to time to do the tax clearance at that time but according to the LHDN online report, LHDN still owes me around 15K RM for tax return. I was wondering if it is OK for me to go back to Malaysia on tourist visa to close this case? Any concern or issue while passing custom check point?

Mazlan (author) from Malaysia on August 17, 2018:

Yes, it is best to do this as you may not know if in the future you may have other incomes in Malaysia

Lee on August 14, 2018:

Hi, I paid my income tax for FY2017 and migrated to other country since Jan 2018 (no income in Malaysia since Jan 2018), do I have to apply for tax clearance? Thank you.

sar on July 25, 2018:

I have started working in Malaysia in April 2018. My 182 days will be completed by end of September 2018 and become tax resident here. But my current contract end by December 2018.

Is it possible for me to submit tax clearance before I leave Malaysia in December and get refund of excess tax I paid during initial 6 months? or I have to wait till yearly tax return in April 2019 for refund.

shiv12 on July 19, 2018:

Hi Mazlan,

Need one help for information related to Tax Clearance letter ( TCL) for my case below:

I have resigned from my 1st employer and my 2nd employer is filing my New Employment Pass ( EP). I need to know that is Tax clearance letter a mandatory document for EP filing. If yes, Since my 1st employer does not have TCL now so can it be substituted with Tax Position statement issued by IRBM so that EP can be processed and once TCL is received by 1st employer, it can be submitted to 2nd employer later.

Thanks

Shiv

Ragu on July 11, 2018:

Hi,

I want know the my tax slab and resident or non- resident details, my employement started here in Malaysia from June and my cotract perioed is 1yr So which tax slab is applicable for me and what is the status resident or non- resident??

Can anyone help me by replying.

Thanks In Advance..

Vaishnavi on July 02, 2018:

Hi Mazlan,

I was taxed as resident in 2017,I continued to stay in Malaysia only for 4 months in 2018,Will I be taxed as a non resident for 2018?Is it mandatory that I stay for 182 days every year?

Mazlan (author) from Malaysia on June 27, 2018:

Vaishnavi, I don't have your full detail and I assumed it is from the amount outstanding from your monthly tax deduction (on your salary) made by your company

Vaishnavi on June 26, 2018:

I have received my tax clearance which says I have tax liability.I have stayed 182 days in 2017 and received the returnsI have been asked to pay the pending tax now even though I was taxed at resident rate already for 4 months in 2018.Can this happen

Mazlan (author) from Malaysia on June 18, 2018:

Hi denise, for the full explanation, please refer to my article https://toughnickel.com/personal-finance/Quick-Gui...

Thanks

denise on June 17, 2018:

question the 14 days visit limit outsjde malaysia does it imply for every time you are out of malaysia or for the whole duration of the 182 days as an expat

Mazlan (author) from Malaysia on June 08, 2018:

ramon bahadur, you have to give more info like when you start work/arrive in Malaysia, the year that you are referring to (as in your stated Dec and Fe) etc.

Mazlan (author) from Malaysia on June 08, 2018:

Nguyen, the best thing to do is to visit LHDN's office in person and explain your situation.

hi im ramon bahadur on June 07, 2018:

if my contract finished on july 9 and i go vacation on december and comeback on February 9 but my im not renew my contract, How much my tax as expatriate

Nguyen Thanh Huynh on June 06, 2018:

Dear Admin, I worked in Malaysia before in 2015 with Emerio company during 6 month from November 2014 to April 2015, I could not get tax clearance letter. Now I would come back to work in Malaysia again. How could I get clearance letter back now. Please help me. Thanks and best regards,

Mazlan (author) from Malaysia on June 03, 2018:

nishi, yes the company can do monthly deduction monthly from your salary for your tax payment

nisni on May 24, 2018:

good evening , i'm a new foreign worker ,

i have a question for you if you may,

my question is this : according to my reading on the Malaysian tax system , do my company have the right to do a monthly tax deduction from the salary ?

or am i the responsible of doing my own taxes ?

because according to Malaysian tax codes if an individual is in Malaysia for a period greater or equal than 182 days he is consider to be a resident and therefore i wont be taxed at a rate of 28% because between the starting date (25/06/2018) and the end of the year (31/12/2018) there is 190 days ?

thank you in advance

best regards

Mazlan (author) from Malaysia on May 19, 2018:

If you still receive the salary from home base in Malaysia, yes you have to file your tax

MJ on May 15, 2018:

What if my current employer delays in sharing the CP21 letter required for getting the tax clearance?

LIM on May 15, 2018:

Hi Mazlan,

I am seconded from Malaysia to work in Singapore as an expat( I am a Malaysian) on May 2017. I got my tax clearance that time and pass it to my employer. I still have my salary in ringgit and allowance in SGD .Do I need to file my tax in Malaysia still?

Karri on May 10, 2018:

hi Mazian,

on Tuesday ie 8 may 2018 i have filed and submitted my Taxation in the HASIL for 2017 and it seems i have piad over 20 cents more! i have resigned from my current organization on monday 7 may 2018 and want to leave to my country india as early as possible but my office says you need to wait for atleast 3 weeks get tax clearance for my visa to get cancelled, unfortunately i have to leave before 28th of May 2018 at any cost due to some emergency! how can i get my tax clearance certificate immediately for submitting to my office? your kind suggestion is very much solicited! thanks in advance!

Krish on May 06, 2018:

Hi Mazlan,

This is Krish and working as a IT employee. I have two questions.

1. My Employment started in Malaysia from 1st of January 2018. Now I would like to resign and go back to my country, Due to some personal work.

If I resign now, am I eligible to get the Tax refund which was deducted 28% from my salary. I have one month of Notice period.

If yes please share the details to claim it (Even though if it’s not crossing 182 days).

2. And I have traveled to my home country couple of times for 4days once and one week once.

Will it also consider as I’m out of Malaysia?

It would be a great help if you share few details to claim Tax. Thanks in advance.

Mazlan (author) from Malaysia on May 06, 2018:

Lee, yes you still have to submit your returns

Lee on May 02, 2018:

Hi Mazlan,

I'll be working in another country starting July 2018. I will have employment income until June 2018 and rental income until December 2018. Do i need to submit tax clearance (Form CP21)? Thanks

Mazlan (author) from Malaysia on May 02, 2018:

Priyangamani, submit your tax return for 2017 income online (closing date for online submission is now extended to mid may 2018. Then in June submit your tax clearance together with your income for 2018.

PriyangaMani on April 22, 2018:

Hi Mazlan,

Regarding tax refund.I started working on May2017 to till date.Suppose I need to end the contract on coming july means can you tell me what I need to do?

Sptan on March 29, 2018:

Hi Mazlan,

My responsibility has been made redundant and my contract has been terminated by the company since 11 May 2017. Since then till today I have no job, thus no income. I am 58+old now and has been depending on my saving from EPF since then. I have requested for the EA form EA form/ PCB deduction form of 2017 since my last day of work but only been provided on 1 March 2018. Since I was no able to work and does not have income, I have requested for completed CP22A form filed with LDHN and been provided by my former company on 19 March 2018.

(1) Do I still need to file the BE form since CP22A has been filed by my ex company with LDHN?

(2) If I still need to complete the BE form for 2017, may I know what is the further required to enable me to complete the efiling of BE form of 2017 correctly and to close my tax file adequately with LDHN?

Your kind prompt and kind advise will be much appreciated since the due day is getting nearer. My email address is tsphin@yahoo.com.

Thank you, Sptan

Anthony on March 25, 2018:

My employer purposely waited for more than 60 days before they gave me the CP22A, in which I will submit immediately. Can you tell me what I should bring to the Tax office?. I have printed by 2016-2017 tax return, but not yet done my tax yet. I am an expat, but applying for Talent Corp which is now approved. My employer is in the process of cancelling my EP.

Mazlan (author) from Malaysia on March 25, 2018:

Benn, it is best for you to visit LHDN office and explain the situation to get the correct clarification.

Benn on March 23, 2018:

Hi Mazlan

I have a question as my Bro. was in Malysia in 2011 and left in 2012 (need an emergancy to back home) but he didnt clear the tax. Now he again in Malysia in 2017 join in a company now he complete his contract there and plan to back in next month , now the current company notify him regarding pending tax . Do we can pay off it now to regularise it then how much will be the penalty %

Kindly advise

Benn

Maddy on March 04, 2018:

I left my previous employment on 5th January 2018, and did the tax clearance as well and left the country after paying the tax amount I was liable for.

Now I have joined another company in February 2018. So, do I need to file my income tax return for 2017 in 2018, as I have already done the tax clearance in January 2018?

Also,since I worked for 5 days in January 2018, so how and when do I fill my income tax return for that period. Is it in 2019?

Mazlan (author) from Malaysia on March 03, 2018:

rahsdk, why don't you see the LHDN and explain your situation with regards to your tax clearance?

On your severance pay, my only suggestion is to see the company HR again as well as the Labour Dept. of the Ministry of Human Resources

Sia on March 01, 2018:

Hi Mazlan, I have a question. To fill in the inside and outside Malaysia duration tax clearance form, I was in the Malaysia since 2013, do i need to fill the whole year from 2013 till present in the form? Thank you.

Madhu on February 23, 2018:

I am madhu I worked in Malaysia on july 2015 to july 2017 previous company not cleared my tax amount in 2016 now I got new company in Malaysia they are applied for visa but application is rejected because of tax is there any solutions for this problem?

Kumar on February 22, 2018:

Hi Mazlan, Thank you for all the help you do in this forum.

I am in a massive pickle. My employer had promised to pay my taxes. They had paid for 2015 (28k), but for 2016 then paid only 15k of 46k (31k in arrears) and now for my 2017 tax there is additional 46k. So in entirety the tax is 76k!

There was no monthly deduction been done. I was told it would be taken care of. I do have one or two emails where they have responded to my tax being paid by them. My contract does not specify explicitly. The last 2 payments are directly from the company current account, if that is of any proof.

I certainly dont have that kind of money and now cannot even join another company in malaysia. What should I do? I am losing sleep over this.

rahsk on February 19, 2018:

my contract got terminated due to company department closure on jan 31st. I still have not gotten tax clearance and severance payment. company says waiting for tax clearance. is there any thing i can do?

Thanks

Mazlan (author) from Malaysia on February 16, 2018:

dineshani3d4, I don't think you will be stopped at the immigration for not filing your tax clearance

dineshani3d4 on February 14, 2018:

Hi mazan,

I am an expat started working in Malaysia from August 2017 and recently my employment got cancelled since I resigned.my last day in Malaysia is Feb 28th 2018 . Since I don't want to come back to Malaysia again and since I want to leave the country immediately in few days ,can I pass the immigration in airport if I don't have the tcl ?? Or will they send me back to get the tcl even if I don't want to come back to Malaysia again ???

Mazlan (author) from Malaysia on February 12, 2018:

annaath, it's better to declare nil every year if there's no income in case you need might need to declare actual income in the future

JJ on February 08, 2018:

Hi Mazlan, question about tax clearance.

I have already left Malaysia for permanent employment for almost 2 years now, and when I left Malaysia i submitted all my tax filling up until 2015. I was employed overseas since 2016 till now.

When i left, i did not know what is tax clearance as I was unemployed before i got this job offer, so i end up leaving without submitting for any tax clearance.

Should I still do a tax clearance with LHDN now?

P/S: My 2016 filling for 2015 already indicated lesser income where i also stopped employment in May 2015.

Thanks,

JJ

annaalh on February 06, 2018:

Hi Mazlan. I am Malaysian but have not been deriving income from within Malaysia for some time now. Do I still need to close my income tax file, or can I just declare 0 every year during tax season? Please help me, I am very confused. Some people say to close, some say don't. Thank you!

Ahmed Bin Tariq on January 23, 2018:

Hi Mazlan, I am an expat and left vendor company on 22nd of December, and joined client on 9th of Jan 2018, all the while I was in Malaysia. Now client HR is saying that I have become a non tax resident again as there is a break in employment. What does your expert opinion say about this case.

Trazer on January 16, 2018:

I would like to ask a quick question on CP21. If an employee was terminated in say July, employer has filed a CP21 form for him. Then the employee received an additional amount of income say in September. Shall employer issue another CP21 form to reflect this amount? If yes, whether the employer should issue one OR one form containing all the earnings for the year?

Actually, is there anything in the Income Tax Act asking the ER to issue another CP21 if the earning changed?

Sandy on January 15, 2018:

Hi Mazlan,

If we have employees seconded in Malaysia or an expat until mid-2016 and for the year 2017, they are fully receiving salary income in Malaysia (apparently absorbed by Malaysian employer since mid-2016)

How and what will be the treatment if they received income coming from here in PH that was based on their performance in 2016 (late charged of performance)? Will still report this on their 2017 income?