What is a Tax Clearance Letter and when do I need one?
A Tax Clearance Letter records HASiL’s clearance position for the case concerned. Company closure and employee departure have different procedures. Employer notification can apply when an employee leaves Malaysia for more than three months; it is not limited to foreign employees. Check the relevant notification, exceptions and withholding requirements before releasing final payments.
Sources: HASiL employer responsibilitiesHASiL employment termination guidance
Also asked as: TCL malaysia; tax clearance closing company; surat penyelesaian cukai; SPC lhdn.
HASiL lists CP21 notification at least 30 days before expected departure. For applicable cases, its employer guidance requires money payable to be withheld for 90 days or until clearance is received. Regular travel in the course of employment and other exemptions require separate assessment.
For company closure, your tax agent should check the closure route, outstanding returns, liabilities and clearance documentation with HASiL. Do not treat an employee-clearance procedure as the company-closure checklist.
Key facts
- Company and employee clearance are separate procedures
- CP21 can apply to departures exceeding three months
- Notification, withholding and exceptions require case-specific checks
Call +60 10-383 5988 (a licensed secretary replies within one working hour (Mon–Fri 8:30am–5:30pm MYT; outside hours, first thing next working day)) or walk in at J-3A-15, Solaris Mont Kiara.