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Job change while in EP -III and tax clearence.

Last activity 25 June 2018 by shanmugha1990

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shanmugha1990

Hi,

I am Shanmugha, from India . I have been working in Malaysia for almost two years. My current EP  is expiring by September-2018.
I got a new offer from another company and i am willing to take it . I have a few uncleared questions.

1. For stage 1 for the new company do i need to give a release letter from the old company or release letter needed for stage 2 only?
2. As i am currently in Malaysia and working , for change of company within Malaysia do i need to do tax clearance for 2018 or just previous year tax declaration would be enuf for joining the new company?
3. Employment pass from my current employer can be cancelled after the stage 1 approval from the new employer ?


Kindly help on the above .

Thanks

Gravitas

Yes, you need a release letter (NOC) for Stage 1.
Yes, need to do tax clearance

See paperwork requirements: Annex D
https://esd.imi.gov.my/portal/pdf/TC-ES … r-2017.pdf

Current company will cancel your EP once you resign and you are working your notice period.

BUT
If you are on EP Category III (3) and the new job is also Category III* - you have a 3 month cooling off period so will leave the country and enter for the new job on a Visa with Reference (VDR)

*Category III - salary RM3000-4999

shanmugha1990

Hi Gravitas,

Thx for ur reply .

I came to know that tax clearance only if i need to exit out of Malaysia and come back . If i just change company within Malaysia without exit from malaysia do i still need to clear the tax for 2018 .

Is it not possible to declare the tax next year in 2019 show the EA forms of my old employer and new employer ?

Gravitas

Always need to do tax clearance when changing job.

Read the link provided earlier as it states what paperwork for tax is required for the Stage I approval with new employer (i.e. its part of the Stage I process).

Cooling off period is potentially relevant

shanmugha1990

Thx for ur reply,

I would also like to know regarding my EP .

I am currently in EP III and my new company offered me a salary above 5k that is (4000 basic+ 1500 allowance), so my new salary will be 5.5k  this one will be considered as EP II or still its is under EP III?

Gravitas

I think mmigration only take basic salary into consideration so it would still be category 3 and you would need cooling off 3 months. The company should realise that I would have thought? and adjust your salary.

Gravitas

You don't say what the allowance is for but that sort of remuneration is taxed at a higher rate. I think it is 30%.

shanmugha1990

Hi,

My the salary for me is revised and they mentioned that i ll be getting a basic of 5k rm . and my pass will be moved from EP III to EP II . Since its is moved from iii to ii should i still need to exit malaysia or just change employer without exiting .

And moreover if i not required to exit malaysia do i need to do tax clearence ? or just tax declaration for the previous year is enuf to proceed .

Later next year i can do the tax clearence (from previous employer and new employer )? together in 2019 .???

Kindly need advise

Gravitas

You don't need to exist if Stage I approval has been obtained before the end of your current EP

Tax clearance is always required when changing jobs

shanmugha1990

Hi,

Thx for the reply .

But my new employer HR told me that tax will taken under them from the previous employer and not necessary to do tax clearance.

I still got clarifications on that part .

I haven't yet spoken to my hr on this  .

thx

Gravitas

https://esd.imi.gov.my/portal/pdf/TC-ES … r-2017.pdf

shanmugha1990

Hi ,

May i know how long does it take to do the manual cancellation of my employment pass if submitted to mdec.?

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