What Is It

A Tax Clearance Letter (Surat Penyelesaian Cukai - SPC) is an official document issued by the Inland Revenue Board of Malaysia (LHDN). It certifies that a worker has fully settled their income tax liabilities. Under Malaysian law, employers must withhold the final salary/gratuity of employees who resign, retire, or leave the country until they receive this letter.

Who Must Apply

  • Employees resigning from their current job to join another company.
  • Employees retiring from service.
  • Foreign expatriates ending their employment contract and leaving Malaysia permanently.

    • Required Documents

  • Form CP21: (For employees leaving the country).
  • Form CP22A: (For private sector employees retiring/resigning).
  • Form CP22B: (For public sector employees).
  • EA Form: Copy of current and past years' EA forms.
  • Passport: (For foreigners) Copies of all pages showing entry/exit stamps and work passes.
  • Resignation Letter: Copy of resignation or retirement notice.

    • Step-by-Step Procedure

    1. Notify Employer: Inform your HR division of your resignation or departure date at least 30 days in advance. 2. Submit Form online: The employer or employee submits the relevant form (CP21, CP22A, or CP22B) online via the MyTax LHDN portal (mytax.hasil.gov.my). 3. Tax Audit: LHDN reviews your historical Monthly Tax Deductions (MTD/PCB) against actual declarations. If there is unpaid tax, LHDN issues a payment slip. 4. Settle Taxes: Pay any outstanding tax balance immediately. 5. SPC Issuance: Once the tax is clear, LHDN issues the SPC to both the employer and employee. The employer is now legally cleared to release your withheld salary/gratuity.

    Cost & Processing Time

  • Cost: Free.
  • Processing Time: Take 10 to 14 working days from the date of complete document submission.

    • Where to Apply

  • LHDN MyTax Portal: Online (mytax.hasil.gov.my) or visit the nearest LHDN branch office.