KUALA LUMPUR: Employers in both private and public sectors must notify the Inland Revenue Board (LHDN) of employee terminations or deaths to facilitate tax clearance.
LHDN Revenue Collection Department public relations officer Azharuddin Mohd Ali said the notification must be submitted through Form CP22A for private sector employees and CP22B for government employees.
It should be sent at least 30 days before termination or no later than 30 days after being informed of a death, allowing LHDN to issue a tax clearance letter.
“Employers are required to withhold any payments due to the employee for 90 days or until the tax clearance letter is issued.
“This applies in cases of termination, death or when an employee leaves Malaysia for more than three months with no intention to return.
“This measure ensures that any tax arrears are settled before the employee starts working for another employer or returns to their home country,” he said as a guest on LHDN’s Tax Clinic programme.
Effective Sept 1, 2024, all requests to amend or add employee information must be submitted through the e-SPC system on the MyTax portal, while cancellation requests can still be made manually at the relevant HASiL office handling the employee’s tax file.
Azharuddin also reminded employers to prepare and issue EA statements (for private sector) and EC statements (for public sector) to employees by Feb 28 each year.
“These EA and EC statements must be provided on time to ensure employees can fulfil their tax obligations by submitting their tax returns to HASiL within the stipulated period,” he said.
He added that these statements are essential for taxpayers to report their income through e-filing, which will begin on March 1.
