Personal Tax

Any individual who earned more than RM34,000 per annum (after deduction of KWSP, SOCSO and EIS contributions) must register a tax file and declare income tax via e-filling of Form BE or Form M.

Form BE refers to income assessed under Section 4 (b) – 4 (f) of the Income Tax Act 1967 (ITA 1967) and be completed by individual tax residents who have income other than business.

Form M refers to income assessed under Section 4 (b) – 4 (f) of the ITA 1967 and be completed by individual non-tax residents who have income other than business.

Form BE & Form M submission deadline:

• Manually – on or before 30th of April
• Online – on or before 15th of May

Personal Income Tax Rate

• A resident individual is taxed at a scale rate [refer to LHDN Offical Portal – https://www.hasil.gov.my/en/]
• A non-resident individual is taxed at a flat rate of 30% on total taxable income.

Personal Income Tax Clearance

The Tax Clearance Letter (Surat Penyelesaian Cukai (SPC)) is a letter issued by LHDN to notify the employer of a deceased / retiring / resigning employee’s tax liability so that employer may make final payment of salary / compensation / gratuity to the employee.

Employer need to make application of tax clearance when the employee :

• Leaves Malaysia for period exceeding three (3) months; or
• Resign from current employment; or
• Retire; or
• Death

The employer is required to notify LHDN and apply for SPC not later than thirty (30) days before the date of the employee’s expected date of departure / termination of employment or, in the case of death, within thirty (30) days after the death.

Forms to be filled by employer:

• Form CP21 (Notification by Employer of Departure from the Country of an Employee); or
• Form CP22A (Tax Clearance Form for Cessation of Employment of Private Sector Employees); or
• Form CP22B (Tax Clearance Form for Cessation of Employment of Public Sector Employees); and
• SPC request check-list.