Hello Members,
I have given my resignation at my Current company... I want to leave the country(Malaysia) immediately as I have my Joining date at my new company in India.... I am really confused with some things.. SOmeone please HELP ME OUT....
* Is the Tax clearance letter compulsory..
*If yes , then who is responsible to fill and submit the Documents for the TAX CLEARANCE LETTER.. Do i have to personally go to HASIL and submit it or is it the responsibility of the Company to do so....
*after the Documents are submitted to HASIL,, Do I have to wait for the letter or can I leave the Country without the letter and ask my Friend to collect the letter from my Employer
*Where does HASIL deliver the TAX CLEARANCE LETTER... Is it on the email or do they send it through courier, or do I or employer have to go to HASIL and collect it...

Please Reply... ITs URGENT

Im afraid i dont know much but ill try to assist you okay with my limited knowledge...huhuhu...
Basically you need to check with tax office you have your file with...
Ask hr of your company to complete form CP21..nowadays they can fill it online via e-SPC..

You need to have last year EA Form (your hr should have it if ur previous tax matter being manage by company)..ask from them...

Complete this year BE Form and please make a copy for all pages in ur passport for verification purposes...

This letter is a proof that you have clear all money owed to irb before left the country. ..normally hr will hold ypur last salary payment any payment that you should receive from the company before irb issue tax clearance letter...if u have money owed to them, they will deduct and credit you the balance later...

Complete all document and irb shall process it within 14 working days (nowadays is more efficient)..and a week after, if no prob...they will post you the tax clearance letter at your former employer...to notify the balance of amount owing by you to irb in that letter and hr will deduct the amount to be paid accordingly to irb...

This letter normally will affect you for obtaining employment pass...because they want the liability owed by former company and soon by new company is not clashed...

Just do this...
Ask hr whether they already did or fill the CP21 Form
Get your EA Form last year copy(all last year/s)
Fill up this year BE Form
Make a copy for all pages in your passport...
Your friend can collect the letter for you...most important submit document that ive mentioned above and let irb do their job...if u nasib baik..2 weeks can get already...if not one month...
Just do it or else later irb will find you and ask why you didnt do clearance before leaving...

This is from my little knowledge...apologise if not complete process...

This post has been edited by niafaz89: Jun 5 2016, 03:11 AM

Sorry..
If you have paid tax for few years...like you work and have EA Form from 2012-2015...please get all of them and bring it to IRB..better prepare if they ask u all EA Form...

Is this inter company transfer or not?
Means your current employer know about you will be leaving soon?
Coz ive seen a case where former employer dunno he"ll leave for overseas and so they just file Form CP22A and he wrote a letter to Irb mentioning that he"ll no longer working in Malaysia. ..
So im not sure which one in your case

AND you have to submit all this document at IRB Branch in which your file being located...

Is this letter needed if working in singapore while staying in malaysia?

No need...cause the first requirement to be deem liable for tax payment is resident test...if you are staying in malaysia for more than 182-183 days...thus you are subject to tax law under malaysian income tax law...

Source from this website:http://incometax.financialplanningmalaysia.com/

Referring item no.2, it states income from overseas are tax exempted. So is it still required to pay income tax to LHDN?

No need...this is part of double tax agreement entered by around 150++ country around the world...you will be taxed at the country where you deem as resident and subject to that land tax law...you income from oberseas is tax exempt according to the 2004 circular regulation...

In your case, you are not subject to tax payment to lhdn but to singapore authority...you might want to check with them...

THank you so much for your reply... Was indeed very Helpful..
Just some more doubts running in my hEad... I f you can please clear it...
* who is responsible to fill and submit all the Documents for the TAX CLEARANCE LETTER.. Do i have to personally go to HASIL and submit it or is it the responsibility of the Company to do so....
*after the Documents are submitted to HASIL,, Do I have to wait for the letter or can I leave the Country(Malaysia) without the TAX CLEARANCE LETTER....

Will be really great if You can reply to these queries...
Thank you

Does this inter company transfer? Means are u serving same company but different branch/department or completely different employer?
If same..hr will do it...if not they only will fill up Form termination of employee ( assuming they dont know you will migrate), then you need to fill it by yourself...

You dont need to wait as employer (previous) will hold the salary and deduct it if any amount stated at tax clearance letter...just put the mailing address to your old company. ..after hr settled with it, ask your friend to keep it for you or scan it for your further references .

So basically the tax clearance letter is to collect from the employee any outstanding tax owed to irb??

I went to Hasil office in Petaling Jaya last January 12, 2021 (Menara Hasil, PJ Trade Centre, No. 8, Jalan PJU 8/8A, Bandar Damansara Perdana, Selangor, 47820 Petaling Jaya) to apply for Tax Clearance Letter as I'm moving to another company.

I'm an expatriate working in Malaysia since April 2019.
Below are the documents Hasil asked me to submit :
1) Completed Form CP22A signed by employer
2) Copies of EA form for Year Ended 2019-2021
3) Offer Letter from new employer
4) Original Passport (for verification only)
5) Photocopies of new and old passport (all pages)
6) List of movement (in/out) of Malaysia
7) Official letter signed by employer on company letterhead verifying tax liability (Tax Borne Letter)
8) Employer's statement on payment of tax, Form PCB 2

Documents 1,2,7,8 will be provided by your HR.
Document 6 (and other unmentioned forms) will be provided by the Hasil officer. You need to fill up manually.
While the rest are self-explanatory.

The processing will take 14 working days. You will receive a call from the officer to inform you when your letter is ready for pickup.
Fortunately, mine took 7 working days.