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Tax Clearance Mandatory before exiting the country..?

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muralipsna

Hi Experts,

I got new job in Malaysia. My current company cancelling EP and their not providing NOC. so my next company asked me to exit country and ready to process EP in India. Right now i filled the tax clearance in LHDN they provided the acknowledgement as well. But it seems it will take another 15 days to get the tax clearance certificate. In that case i have to exit the country by coming 4th August. Is tax clearance will affect in Next EP processing..? Pleas Help me to clarify before i exit the country what and all document i should keep..?

Gravitas

The tax clearance and settlement is needed before any new EP is issued. This is to separate the liability from each of the companies i.e. if the first one has not remitted enough tax, the second company cannot be liable. You may well find you cannot actually leave, as immigration can stop you at the airport these days if the tax process is not complete. Remember tax and immigration databases are now linked.

muralipsna

Thank you Admin.
In that case until my current company clear the tax i cant come back to Malaysia and My new company also cant proceed EP right..?

Gravitas

Right. And you may have difficulties leaving on 4th August.

Usually what happens is the employer retains the last month's salary. That is used to pay off any liabilities. Any amount remaining is then remitted to your usual account. Any shortfall needs to be paid before the clearance certificate is issued.

You then have the DP10 process to go through. This is going to take some time as well. Realistically I think you may not be ready to return to Malaysia until September some time. We have some more national holidays coming up and they always cause delays.

venkatr

Yes, Gravitas is right.  Anyway tax clearance is mandatory. You cannot exit the country if you still have tax arrears as immigration can stop you as you are leaving.  Please have all the forms, copies of returns (even if you did e-filing) etc. with you.

mama_sing8

Hello expats,

I need your advise as well, I am leaving the country as well and have a bunch of questions, that I hope I could clarify, I submitted my tax clearance, and got the clearance letter, saying that "They are permitted to release a"ll monies withheld to me,", I was expecting them to deduct the payment for the tax from my March salary, which they didn t do. So I am really confused now, I should exit the country on the 14th, and I couldn t get any logic answer for my employers on what the next step. If there is sth to pay or not and what should I take with me when I ll exit the country, so here are my questions:
1- For the tax, what should be my next step? is the tax clearance letter enough for me to submit at immigration while exiting, or should I provide other doc as well?
2- Is there any other documents required beside the tax clearance?
3- I planned a short trip with my friends to Indonesia, so I booked already two ways tickets and now I am not sure whether I should wait till this tax thing is more clear or I can just go and come back to handle it later?
4- I also got one short term assignment, a job for 3 months with a different company, so should I take it, considering that my EP is cancelled, what would be the process to go through, and would It have any impact on my tax clearance?

I guess that would be it, I hope i could have some answers soon, cz my mind is going wild with all of those unclear processes.

Thanks and Regards

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