[Malaysia] How to generate CP21 form?

The CP21 form is a tax clearance document required when an employee plans to leave Malaysia for more than three months. Employers are obligated to notify the Inland Revenue Board of Malaysia (LHDN) at least 30 days before the employee’s departure to ensure compliance with tax regulations.

When is CP21 Required?

Employers must submit the CP21 form in the following situations:

• The employee is permanently leaving Malaysia.

• The employee is relocating overseas for a new job.

• The employee is going on a long-term international assignment.

Employer Responsibilities

To complete the tax clearance process, employers must provide the following details:

• The employee’s full personal information.

• The date of departure from Malaysia.

• The employee’s tax details, including income tax deductions and any outstanding tax liabilities.

Important Submission Guidelines

• CP21 must be submitted at least 30 days before the employee's departure.

• Any pending salary payments should be withheld until tax clearance is completed.

• If the employee has outstanding tax dues, the employer must deduct the owed amount from the final salary and submit it to LHDN.

Follow the steps below to generate the CP21 form using HReasily:

1. Click on Manage Company from the left sidebar.

2. Navigate to the Payroll tab.

3. Scroll down to the CP21 File section and expand it.

4. Select the employee’s name and specify the resignation date range. Click SEARCH to retrieve relevant records.

5. Click ACTIONS > Edit to enter or update the necessary details. After updating, click Download to generate the CP21 form for the selected employee.

6. Lastly, select the employees' names from the list and click Download Selected PDF to generate and download CP21 forms in bulk.

Additional Notes:

CP22A File for multiple employees will be zipped into a folder.

Zip folder name: {companyName}_CP21_{downloadDate}

E.g: EatNowKL_CP21_04042025