Tax Clearance not complete.

uradhan

New member

Member since 23 October 2021

uradhan

29 March 2023 18:13:37

uradhan

29 March 2023 18:13:37

Hi All,

My previous employer in 2021, suddenly cancelled my Visa & asked me to leave Malaysia. But did not provide any tax clearance. Upon checking with LHDN, my pending tax is 8k MYR, which my employer did not paid to LHDN. As this was a huge amount i count not pay.

Now i am having another offer in Malaysia & meanwhile my passport has been renewed.

Can anyone please advise ? As my previous employer is very hostile & dont want to help me at all. What should i do now ? Do i need to clear the previous tax or I can leave it as it is as my passport is renewed.

NadiyaInMY

New member

Member since 31 March 2023

NadiyaInMY

02 April 2023 02:15:11

NadiyaInMY

02 April 2023 02:15:11

You need to do tax clearance if you resign or leave the country or terminate. Your employer needs to complete one of the following forms:

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

Plus, the employer must notify LHDN at least 30 days BEFORE the expiration of the employee's work contract, the date of resignation or termination of employment, or the date of the employee's departure from Malaysia. If tax clearance is delayed may be subjected to a 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 may take legal action against the employer who fails to pay the outstanding tax as per the Tax Clearance Letter.

Hope it help