Employer is responsible to notify IRBM at least thirty (30) days before the ceases date if employee is:

1. Soon to retire.
2. Subject to MTD scheme and the employer has not made any deduction.
3. Leaving Malaysia permanently.

The employer must withhold money payable to the employee until Tax Clearance Letter is received from HASiL Office.

However, employer does not require to notify cease from employment or withhold any money payable to the employee if:

1. Employee is subject to MTD and deduction has been made by the employer.
2. Employee's remuneration is less than the minimum income subject to MTD.
3. Employer is aware that the employee is to be employed elsewhere in Malaysia.

Required Forms:

1. CP22A (596.44 KB) Notification of cessation of employment (Employment of Private Sector Employees)
2. CP22B (589.29 KB) Notification of cessation of employment (Employment of Public Sector Employees)

Employer must submit CP21 Form (which can be downloaded here) to HASiL Offices that handle the tax file. Form.

Employers must withhold any monies payable to employees until tax clearance letter are received from HASiL Offices. However, if the employee's departure is for a frequent period in the course of his employment, employers do not have to submit CP21 and withhold any payment to the employee
Akan tetapi, sekiranya pemergian pekerja tersebut adalah bagi tempoh yang kerap dalam perjalanan penggajiannya, maka majikan tidak perlu menghantar CP21 ke HASiL dan menahan apa-apa bayaran kepada pekerja.

Failure to notify IRBM is liable to a fine of not less than RM200 and not more than RM2,000 or to imprisonment for a term not exceeding six months or to both [Section 120(1), Income Tax Act, 1967].

Employer is responsible for any tax due from the above mentioned employee. both [Section 107(4), Income Tax Act, 1967].