Guide to Tax Clearance in Malaysia for Expatriates and Locals

Updated on January 30, 2018
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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.

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.

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.

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 monies 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.

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.

Questions & Answers

© 2016 Mazlan

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    • profile image

      sar 

      2 weeks ago

      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.

    • profile image

      shiv12 

      3 weeks ago

      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

    • profile image

      Ragu 

      4 weeks ago

      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..

    • profile image

      Vaishnavi 

      6 weeks ago

      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?

    • greatstuff profile imageAUTHOR

      Mazlan 

      7 weeks ago from Malaysia

      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

    • profile image

      Vaishnavi 

      7 weeks ago

      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

    • greatstuff profile imageAUTHOR

      Mazlan 

      8 weeks ago from Malaysia

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

      Thanks

    • profile image

      denise 

      8 weeks ago

      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

    • greatstuff profile imageAUTHOR

      Mazlan 

      2 months ago from Malaysia

      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.

    • greatstuff profile imageAUTHOR

      Mazlan 

      2 months ago from Malaysia

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

    • profile image

      hi im ramon bahadur 

      2 months ago

      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

    • profile image

      Nguyen Thanh Huynh 

      2 months ago

      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,

    • greatstuff profile imageAUTHOR

      Mazlan 

      2 months ago from Malaysia

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

    • profile image

      nisni 

      2 months ago

      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

    • greatstuff profile imageAUTHOR

      Mazlan 

      2 months ago from Malaysia

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

    • profile image

      MJ 

      3 months ago

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

    • profile image

      LIM 

      3 months ago

      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?

    • profile image

      Karri 

      3 months ago

      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!

    • profile image

      Krish 

      3 months ago

      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.

    • greatstuff profile imageAUTHOR

      Mazlan 

      3 months ago from Malaysia

      Lee, yes you still have to submit your returns

    • profile image

      Lee 

      3 months ago

      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

    • greatstuff profile imageAUTHOR

      Mazlan 

      3 months ago from Malaysia

      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.

    • profile image

      PriyangaMani 

      3 months ago

      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?

    • profile image

      Sptan 

      4 months ago

      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

    • profile image

      Anthony 

      4 months ago

      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.

    • greatstuff profile imageAUTHOR

      Mazlan 

      4 months ago from Malaysia

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

    • profile image

      Benn 

      4 months ago

      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

    • profile image

      Maddy 

      5 months ago

      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?

    • greatstuff profile imageAUTHOR

      Mazlan 

      5 months ago from Malaysia

      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

    • profile image

      Sia 

      5 months ago

      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.

    • profile image

      Madhu 

      5 months ago

      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?

    • profile image

      Kumar 

      5 months ago

      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.

    • profile image

      rahsk 

      5 months ago

      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

    • greatstuff profile imageAUTHOR

      Mazlan 

      5 months ago from Malaysia

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

    • profile image

      dineshani3d4 

      6 months ago

      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 ???

    • greatstuff profile imageAUTHOR

      Mazlan 

      6 months ago from Malaysia

      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

    • profile image

      JJ 

      6 months ago

      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

    • profile image

      annaalh 

      6 months ago

      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!

    • profile image

      Ahmed Bin Tariq 

      6 months ago

      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.

    • profile image

      Trazer 

      7 months ago

      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?

    • profile image

      Sandy 

      7 months ago

      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?

    • profile image

      ttp 

      7 months ago

      hi, i have submitted the requirements for the tax clearance. is there a way for me to check if they have completed the tax clearance letter?

    • greatstuff profile imageAUTHOR

      Mazlan 

      7 months ago from Malaysia

      PHGuyinKL. If you have income from Jan 2018 onwards, yes you still have to declare that income. Penalties are imposed on the late declaration.

    • greatstuff profile imageAUTHOR

      Mazlan 

      7 months ago from Malaysia

      Mal, this secondment is on 'permanent basis' and you will not be coming back to work for the company in Malaysia?

      If so, then you have to do your tax clearance and since your new income is from your Singapore-based company, you need to pay Singapore tax and open a new Singapore tax file

    • greatstuff profile imageAUTHOR

      Mazlan 

      7 months ago from Malaysia

      Richard, do you have all the records of MTD that are deducted monthly from your salary ( to pay to Income Tax Office). Make copies of these plus your latest EA form and all your previous years tax record. Scan and submit to the Tax office ( pls quote your tax ref number) and explain your predicament. cc the email to your employer

    • profile image

      Richard 

      7 months ago

      Mazlan does the employer have an obligation to ensure the tax clearance is correct. I left in May in July owed amount was emailed to me nothing paid by firm and then in Dec I was told I need to pay tax as non resident incl fine. The assessment was done on my passport stamps which is not always stamped when you leave MY. This is incorrect and HR could have verified against travel records. What should I now do ?

    • profile image

      Mal 

      7 months ago

      Hi Mazlan,

      I am in a dilemma and could use your expert advice. I recently took up a secondment to Singapore and was just told that i had to clear my tax in Malaysia and open one in S'pore. I am only here for 3 months on secondment. So what should i do now? What's more frustrating is my local HR has not adviced anything on it to me. Looking forward to your advice.

      Cheers!

    • profile image

      PHGuyinKL 

      7 months ago

      Hi Mazlam,

      I am resigning from work, currently my work permit is until march 18, 2018. first thing, do I have to file for my tax from January 1-march 18, 2018? will I not be pay any penalties? because last time my colleague also was terminated by my company during the same month, as ask to pay some penalties because there is some number of days to stay in Malaysia so that no penalty will be impose upon leaving. hoping you can help me on my inquiry.

    • profile image

      Celine 

      7 months ago

      Hi Mazlan, I'm a Malaysian and going to work outside Malaysia so my current employer had requested me to submit income tax clearance just 2 weeks before my last day of work. Understand from your sharing that income tax clearance must be submitted 30days before my resignation or departure date. So would this cause an issue to me because I do the tax clearance in less than 30 days from my departure date?

    • profile image

      hughumans 

      8 months ago

      Hi Mazlan! After reading this article for the past few months battling a notorious employer in Malaysia, it was really helpful for us expatriates learning so much about your taxing system. It became a tool to enslave us because we don't have the knowledge regarding your taxing system. We are done with our tax clearance and submitted to the evil employer. However, we are suppose to fly within this week and the bad chinese lady won't release our last pay. What can be the best rescourse? Thank you in advance and keep on writing!

    • profile image

      Pra10 

      9 months ago

      Hi Mazlan,

      I am an expatriate who commenced my employment in Malaysia from 17 july 2017 until 03 Nov 2017. I am leaving Malaysia on 13th Nov. I asked my Employer to cancel the Visa and I have submitted passport to do so. If I submit documents for tax clearance on 06 Nov 2017 and if I dont get tax clearance letter before 13th Nov will I be held at the immigration? Can I get the acknowledgement letter for tax clearance from LHDN to travel on 13th Nov?

    • profile image

      Pradeep 

      9 months ago

      Hi Mazlan,

      I am an expatriate who commenced my employment in Malaysia from 17 july 2017 until 03 Nov 2017. I am leaving Malaysia on 13th Nov. I asked my Employer to cancel the Visa and I have submitted passport to do so. If I submit documents for tax clearance on 06 Nov 2017 and if I dont get tax clearance letter before 13th Nov will I be held at the immigration? Can I get the acknowledgement letter for tax clearance from LHDN to travel on 13th Nov?

    • profile image

      Shahzaaib Shahid 

      9 months ago

      Hey, I am working in Malaysia as Expatriate. I entered in Malaysia on 15 June,2017 and joined my company on 19 June,2017. I left Malaysia for 12 Days on vacations and came back on 10 Sep,2017. Now i am resigning from company and my EP cancellation date will be 31 Dec,2017. so if we calculate my stay in Malaysia from 15 June,2017 to 31,Dec 2017 that is 186 Days (Excluding those 12 days when i were not in Malaysia).I am paying 28% Tax as Non-Resident.

      So i apply for tax clearance in mid of November 2017, for 15 June,2017 to 31 December,2017. Should i be able to get refund my tax? My Status from non Resident to Resident will be change on 31 or 30 December,2017.

    • profile image

      tobats1971 

      9 months ago

      Hi ,

      This is my question, my contract here in Malaysia is from Aug 10, 2017 to Sep 9, 2018 as expatriate (13 months). my tax deduction started at August 2017 amounting to 28%. They said that I need to complete 182 days per year to be a resident here in Malaysia and to get a tax refund , but they said. since i cannot complete my 182 days in 2017 (august to dec 31 2017), my 182 will be reset on 2018, and they will still continue to deduct 28% on 2018 until i reach my 182 days on 2018. is this true? they said my status in 2017 (aug to dec 2017) is still non-resident and i cannot get any amount for my tax refund when i file may tax on apr 2018. so , the 182 days is not commulative or carry over ? since from aug 2017 to dec 2017, the count is 5 150 days already. and it will be reset to 0 on 2018 since i did not complete the 182 days for 2017. please kindly enlighten and explain to me. thank you so much

    • profile image

      wayne 

      9 months ago

      hi sir,

      my father age 55, he is a self-employed wish to close the tax file due to not receive any income already.

      he declared borang B, may i know how to close the tax file ?

      isn't only by writing to the branch?

      thank

    • greatstuff profile imageAUTHOR

      Mazlan 

      9 months ago from Malaysia

      nuj, the 31st Dec applies to the calculation for status as a RESIDENT where if your stay in Malaysia is less than 182 days for that calendar year (e.g. 20 days in 2016) but your stay continues in 2017 for another 162 days or more, PROVIDED you are in the country on the 31st Dec 2016 AND 1st Jan 2017

    • greatstuff profile imageAUTHOR

      Mazlan 

      10 months ago from Malaysia

      Raghvender, I am not familiar with banking requirement but I suppose it is OK if the money received is not related to work income. If it is then you have to declare as income received.

    • profile image

      Raghvender 

      10 months ago

      Hi,

      If I have a friend transferring some money in my salary account (MYR) and then I am remitting it to him outside of MY, is it ok or will it be taxed as gift or sth?

    • profile image

      Thirdie 

      10 months ago

      Hello Mazlan,

      How can I check the 14 days rule? For example, I left Malaysia to have a short visit in the Philippines last Aug 31, 2017. My flight was scheduled at 0120 AM. In this case, I should be considered to have stay in Malaysia on Aug 31 right? My return date was on Sept 5. I am thinking that the count should work only on Sept 1 to Sept 4. (4 Days). To add, my passport was stamped by immigration at around 1130 pm, Aug 30 before leaving Malaysia.

      Hoping for your help on this. Thanks!

    • greatstuff profile imageAUTHOR

      Mazlan 

      10 months ago from Malaysia

      Dear Hongtao Xie

      Answer to your question

      #1: Yes you can but you can only claim the overpaid tax when you file your income tax next year (for 2017 income)

      #2: Close your tax file if you don't expect any other monies being paid to you and if you will not be coming back to work in Malaysia in the near future. Since you still have to file your tax for 2017 income, you should only close your tax file after this is completed i.e. by mid-2018.

    • profile image

      Hongtao Xie 

      10 months ago

      Hi Mazlan,

      I am an expatriate who commenced my employment in Malaysia from 17 Oct 2016 until 19 Oct 2017. I have already left Malaysia for good on 15 Sep (the remaining days of employment being adjusted against annual leave due).

      Before leaving, I submitted the documents to LHDN office for tax clearance. My employer received the tax clearance letter directly from tax office (as I requested the tax officer to do so) to release all the monies which is due to me.

      I have the following couple of questions. Kindly request your advise:

      1. For period from Oct 2016 till April 2017, I paid excess tax as a non resident. How can I get the refund? Do I need to submit any form?

      2. Should I request LHDN to close my tax file?

      Appreciate your kind reply. Thanks.

    • greatstuff profile imageAUTHOR

      Mazlan 

      10 months ago from Malaysia

      Diesha, if your stay is less than 60 days (as per your 6-7 weeks stint) then you are exempted from tax. Please discuss this with your employer, before they made any salary deduction.

    • profile image

      Diesha 

      10 months ago

      Hi Mazian,

      I'm suppose to move to MY as a short term company transfer in next month(October) and will be working 6-7 weeks in MY with MY offered salary.

      So in this case as I read 28% of my salary will get deducted as tax and also it was mentioned that I should pay the tax only if I stay more than 60 days In MY. (As it was communicated the company will not born this tax and that would directly deducted from my salary)

      So if I were to return to India before completion of the 60 days is there any possibility for me to get claim the tax deduction or I have to forget about that 28% of my salary.

      Thanks in Advance

    • greatstuff profile imageAUTHOR

      Mazlan 

      11 months ago from Malaysia

      Mrs. D, it is best to file and close your account if there are no future incomes derived from Malaysia.

    • profile image

      Mrs D 

      11 months ago

      Hi Mazlan, I am a Malaysian currently employed by a Malaysian company. I will be working until March 2018, and will leave the country in June 2018 to join my husband in the UK. I will definitely file my YA2017 tax return by end of April 2018; I have no income source by end of March 2018, do I need to file for tax clearance in such case?

      Please advise, thanks!

    • profile image

      Mark 

      11 months ago

      Hi,

      i would like to ask, how is the computation for a foreigner with resident status is leaving Malaysia permanently?

      for example, he is working from Jan'16 to Nov'16, but will leave Malaysia in dec'2016 permanently and salary will continue pay to him until cease of employment (March'2017). in this case, for the computation of income tax part, how can we do?

      for YA2016, we only computing jan'16 to nov'16 only? or we have to do computation from Jan'16 to March'2017?

    • profile image

      SAJIDAS 

      11 months ago

      Thanks for the reply. I am in India now. Visa also expired. Is it possible for me to pay and get the clearance from India?

    • greatstuff profile imageAUTHOR

      Mazlan 

      11 months ago from Malaysia

      Sajidas, was there a monthly salary deduction for tax payment (MTD) made by the company? If yes, then made copies of all your monthly salary slips and submit these to LHDN together with your letter to explain your case. If there is still some outstanding amount for you to pay, then you have to pay and clear this.

      If there is no MTD, then you have to pay all the outstanding tax due.

    • greatstuff profile imageAUTHOR

      Mazlan 

      11 months ago from Malaysia

      Chua, you are still receiving rental income so you still have to file in your tax return

    • profile image

      Sajidas T P 

      11 months ago

      Kindly let me know about my lhdn issue. How can i do the clearence. Because once it cleared only i can join in new company

    • profile image

      Shannen Chua 

      11 months ago

      Im a Malaysian and has been working in Malaysia since 2006. In 5 Feb 2017, I have left Malaysia permanently and working for an overseas employers since then. My Malaysian source employment income ended in FY 2016 as I have not receive any Malaysian salary since 1 Jan 2017. I have been receiving rental income since June 2017. I have no intention of going back to Malaysia to work but I have started to receive rental income since 1 June 2017.

      I have stayed for more than 182 days in Malaysia in YA 2016 and has stayed in Malaysia on 31 Dec 2016 and 1 Jan 2017 but has left Malaysia permanently after 36 days of stay in YA 2017.

      Just want to check if I still need to file as tax resident for YA 2017 or to file M form to declare that I am no longer tax resident in Malaysia

    • greatstuff profile imageAUTHOR

      Mazlan 

      12 months ago from Malaysia

      Clement, if you still have incomes derived from sources in Malaysia, then don't close your account. You will still be paying tax.

    • profile image

      SAJIDAS 

      12 months ago

      UREGENT HELP NEEDED

      Hi Am SAJIDAS T P (expatriate). I worked in Malaysia for past 10 months and I resigned from company due to another job offer. My visa expired in 7th Aug 2017. There is one issue for me to join new company. One letter came from LHDN saying that 14000RM has to pay. My past company holds my last month salary (6500RM).

      I want to clear my income tax for joining new company. My past company is not willing to clear my income tax. I came back to India. I don't know what to do now.

      Kindly let me know if any additional information needed on this.

    • profile image

      Clement Goh 

      12 months ago

      Hi, I am Malaysian, I am transfering to oversea for employment, I have got my CP21 form. I will be going to Income Tax department to declare that I have end my employment with A company.

      However, I do have another income that is as a consultant from another Company - B.

      In this case, what do I do? can an individual still receive income from the company B (based in Malaysia) when he/she is not living in Malaysia?

      or do I have to inform the income tax department do not terminate anything in Malaysia as I do have income from Company B still?

      thank you in advance.

      rdgs,

      Kelvin

    • greatstuff profile imageAUTHOR

      Mazlan 

      12 months ago from Malaysia

      AA, do you have the monthly deductions on your salary for income tax payment? If you do, there's no reason why your office want to withhold two months of your salary

    • greatstuff profile imageAUTHOR

      Mazlan 

      12 months ago from Malaysia

      MrsD, my response as follows:

      Q1: CP21

      Q2: Yes

      Q3: Only if you don't expect to receive any more incomes from Malaysian sources ..e.g. share dividends, house rent etc

      Q4. once you close your account, no need

    • profile image

      AA 

      12 months ago

      Hi, I am Malaysian.

      May I know is there any ruling stated that employer can withheld the salary (how many month of salary they can withheld) until receive the tax clearance letter.

      My last working day is on 31/8/2017, and my company withhold my July and August salary for tax clearance. Is that ok?

    • profile image

      MrsD 

      12 months ago

      Hi! I am a Malaysian who is migrating to the US soon and I'm trying to get myself ready in advance prior to settling all my Malaysian taxation matters when the time comes. I understand that I need to apply for tax clearance so here are my questions:

      1) Which form applies to me, CP21 or CP22A or both? A friend told me CP22A but IRB's e-SPC brochure says CP21 for those who are leaving Malaysia. Confused!

      2) Do I need to file my YA 2017 tax at the same time as the tax clearance application?

      3) Am I allowed to submit a letter requesting for my tax file to be closed permanently at the same time as my YA 2017 advance filing? I'm fully aware that the file will only be closed provided that there are no owings to IRB.

      4) Do I actually still need to file taxes with IRB for YA 2018 and beyond (will be leaving Malaysia before end of 2017) when I will already be filing taxes with US tax authority, IRS?

      If you can shed some light, I would greatly appreciate it. There's no clear guides online that I could refer to and I prefer to familiarise myself with the process than going into it blindly. LOL. Thanks in advance.

    • profile image

      JM 

      13 months ago

      Hi, i'm working as an expatriate.

      My work permit issued in July 2016.

      Company has never paid PCB nor Sumbitted EA 2016 yet.

      Now my company wants to clear the outstanding PCB for me, am i allowed to pay the lump sum amount of PCB?

      Thank you.

    • profile image

      SamAlex 

      13 months ago

      Hi,

      URGENT ATTENTION REQUIRED!!!!!!

      If I need to pay some money to income tax then how can I pay it them ? My employer will pay it OR I can directly pay it ?

      Also If I left Malaysia more than 14 days in last 6 months for a personal purpose like marriage .. Am I eligible for an exception to get the resident status ?

    • greatstuff profile imageAUTHOR

      Mazlan 

      13 months ago from Malaysia

      As per my article, if your stay is 182 days and more, the tax status will be as a Resident.

    • profile image

      Hi Mazlan 

      13 months ago

      I am an expat working in Malaysia. I will be finishing my 6 months at the end of September. My question is as per Tax norms i am charged 28% but suppose i Resign and my last day of stay in Malaysia is on October 1st Can i claim the refund of excess tax i have paid as i would have completed my 182 days.

    • greatstuff profile imageAUTHOR

      Mazlan 

      13 months ago from Malaysia

      Matt, your visa issue is the Immigration Dept matters and I am not an expert in this field. But from what I know, this Residence Pass-Talent Visa is for highly qualified expatriates to continue to reside and work in Malaysia. It gives you lots of attractive benefits, including the flexibility to change employers multiple times during the validity of the pass. It could also include having your own SSM registered sole proprietor company. Yes, any income derives is taxable.

    • profile image

      Matt 

      13 months ago

      Hi Mazlan,

      I am a foreigner with a residence pass talent visa. Do you know if I am able to start my own sole proprietorship with this visa? I intend to freelance and be paid by a foreign company into a Malaysian bank account. I assume this qualifies for Malaysian tax.

      Thanks,

      Matt

    • greatstuff profile imageAUTHOR

      Mazlan 

      13 months ago from Malaysia

      Amit, my best bet is for you to personally go to LHDN's office to check on your status. My gut feel is that you fall under Resident Status BUT check again with LHDN as I might be wrong.

    • greatstuff profile imageAUTHOR

      Mazlan 

      13 months ago from Malaysia

      Lim, you had signed and acknowledged that the tax submitted was correct. if there were errors, you can appeal but within the allowed period. I suggest you go to LHDN's office to clarify your case.

    • greatstuff profile imageAUTHOR

      Mazlan 

      13 months ago from Malaysia

      Employer: It is your responsibility as an employer to notify LHDN and seek tax clearance for this expat. Once the Tax Clearance Letter (TCL) is issued (a TCL is a letter issued by LHDN to notify the employer of the resigning employee’s tax liability, prior to making the final payment of salary/compensation/gratuity to him/her) you will know of any outstanding income taxes owing, and if so, the employer is able to settle the outstanding tax from the monies withheld from the employee.

    • profile image

      Amit 

      13 months ago

      Dear Mazlan,

      I have a query on my residant status.

      In year 2017 , i went to

      my country from 26mar 2017 to 28 may 2017. I went because my mother was ill and i got permission from my company to work from home for three months.

      I have the letter provided by company for work from home arrangement. Do you know if i will be considered as residant for 2017?

      I have now resigned due to my mother not recovering much and will be leaving my company and malaysia on 22 july 2017.

      I have already applied for tax clearance on 21st june and waiting for it. I submitted all documents along with my mother medical certificate obtained from my country and my company work from home letter as well.

      Would be great if you can tell me about my residant status for 2017.

      Regards,

      Amit

    • profile image

      Lim CH 

      13 months ago

      Dear Mazlan,

      I went to LHDN branch on Dec,2016 for my tax clearance before leaving to Singapore to work. On April 2017, I receive excess paid tax. I did tax filling on March 2017. The amount I receive is a lot different. I assume they paid me based on the tax clearance on Dec 2016 which I have not included personal rebates(magazine,insurance etc). May I know how to proceed with this?

    • profile image

      Employer 

      13 months ago

      Hi,

      I have an expat who is refusing to pay the tax clearance amount. Who will be liable? Is it the employee or company? Tax is borne by individual.

    • profile image

      Ken 

      14 months ago

      Dear Mazlan,

      Thank you so much... I will drop by LHDN when I return for the Raya Holiday.

    • greatstuff profile imageAUTHOR

      Mazlan 

      14 months ago from Malaysia

      Ken. Yes, if based on this information, then you are exempted from tax. But I would suggest when you are back in the country, drop over to LHDN and clarify your situation. I might be wrong (or right).

      On buying property, you should have no problem since you are a Malaysian.

    • profile image

      Ken 

      14 months ago

      Here are some additional info on top of my previous message:

      1) Reside in Malaysia for less than 60 days a year

      2) Work for a Singapore registered company

      3) My first job since graduation

      4) Yearly salary ~ SGD12,000 basic ~ SGD 30,000 tavel allowance

      5) Worked for almost 2 years actually.

      I read from the LHDN website that "With effect from the year of assessment 2004, income derived from outside Malaysia and received in Malaysia by a resident individual is exempted from tax". Since I am not considered a resident based on the days I am physically in Malaysia, and earning foreign income, I believe I am exempted from income tax (correct me if I am wrong). Do I still need to declare the income? Any trouble e.g. purchasing property in Malaysia?

    • profile image

      Ken 

      14 months ago

      Thanks for the reply Mazlan,

      Here was your reply:

      "Ken. Is your Singapore owned company based in Malaysia? If you are employed by this Malaysian based company and your office is in Malaysia, then your tax is paid as per LHDN. It doesn't matter if you are out of the country for 300 days or more. All income must be declared."

      The answer is no. The company is registered in Singapore, I am paid SGD, I work as a maintenance engineer so I do no stay in Malaysia for more than 60 days a year. My pay is transfered directly to my bank in Malaysia so I am not sure if I need to declare them too.

      If you want to ask if I pay taxes to Singapore, the answer is no too. I do not work within Singapore. For example, I work 3 month in Indonesia, then 3 months in Korea, then 3 months in Philippines, then 2 months at Taiwan, having a week or two break at home (Malaysia). So it is rather confusing for me in getting an advice.

      So, let's say I need to declare my source of income, am I eligible to pay tax or own a property in Malaysia?

      I would appreciate anyone that could give me an advice. Thank you!

    • profile image

      Max 

      14 months ago

      Hi,

      I am an expat working in Malaysia from January 2015 up to June 2017. 2015 and 2016 tax filed on time. But for 2017, I was only able to submit the tax clearance letter to Tax office 2 weeks before I leave. Will I encounter any problem in immigration during departure?

      Thanks!

    • profile image

      jayaraman 

      14 months ago

      Sir,

      I am two year working into Malaysia. My income tax clearance how to check

    • profile image

      Jamie 

      14 months ago

      Greetings! My work permit in an international school expired last year November 2016. I am back in the Philippines due to certain circumstances. I am planning to go back to KL this month for a visit. Do I still need to do tax clearance? Thank you for your time!

    • profile image

      Luke 

      14 months ago

      Hi,

      I'm a foreigner working in KL (Salary: less than 5k/month). I have paid 28% of my total monthly income for tax . I have personal work so I have to leave Malaysia by middle of July 2017. Is it possible to claim back the tax I have paid? Will my company be involved in any process?

      If possible, please drop me an email to haphinh90@gmail.com, I would love to discuss with you in private.

      Thanks.

    • greatstuff profile imageAUTHOR

      Mazlan 

      14 months ago from Malaysia

      mun li, are you from the company that employed this foreign worker? There is a penalty for not submitting the tax clearance form. I guess it is best you visit LHDN office and see what can be done

    • greatstuff profile imageAUTHOR

      Mazlan 

      14 months ago from Malaysia

      Hi, Esther. I supposed you had your last month's salary before leaving the country? If you intend to work again in Malaysia, yes, it is good to do the tax clearance.

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