Complete Guide to CP Forms: CP21, CP22, CP22A & CP22B

Tax season often brings a flurry of paperwork and confusion for companies and HR teams. Among the many forms employers deal with, CP21, CP22, CP22A, and CP22B stand out as the ones tied directly to an employee's tax status — hiring, resignation, retirement, or leaving the country. Understanding when each one applies (and how to file them correctly) helps you avoid penalties and keep your payroll compliant with LHDN.

What Are CP21, CP22, CP22A, and CP22B Forms?

Each of these forms notifies LHDN (Lembaga Hasil Dalam Negeri Malaysia / IRBM) of a specific change in an employee's status, so the tax authority can assess or clear their tax record accordingly.

CP22 – Notification of New Employee

Employers must notify LHDN within 30 days of hiring a new employee, so the employee's income tax record can be opened or updated and Monthly Tax Deduction (PCB) can be calculated correctly from the start. For onboarding tasks that go hand-in-hand with this, see our guide on the Employee Income Tax Number in Malaysia.

CP22A – Tax Clearance for Cessation of Employment (Private Sector)

Filed when a private-sector employee resigns, retires, or their contract ends. It's how LHDN reviews the employee's tax position and issues clearance before final payments are released.

CP22B – Tax Clearance for Cessation of Employment (Public Sector)

The public-sector equivalent of CP22A, used for the same purpose when a government-sector employee's service ends.

CP21 – Notification of Employee's Departure from Malaysia

Filed when an employee who is (or is likely to be) chargeable to tax is leaving Malaysia for more than three months, whether permanently or long-term. It's not required if LHDN is satisfied the employee travels abroad frequently as a normal part of their job.

When Must Employers Submit Each Form?

Employers must furnish CP22A or CP22B when an employee is about to cease employment and:

is chargeable to tax on their employment income, or
is likely to become chargeable to tax on that income, or
has died while under the employer's employment.

You're not required to file CP22A/CP22B if the employee's income is already fully covered by Monthly Tax Deduction (MTD/PCB), or falls below the MTD threshold, and the employee is staying employed within Malaysia. Outside of that exemption, you must withhold any outstanding payments to the employee and can only release them once LHDN grants permission — typically 90 days after LHDN receives the form.

CP21 follows a similar withholding rule: employers must hold back salary, bonus, or other payments owed to an employee leaving Malaysia for more than three months, releasing them only after LHDN's 90-day review period (or earlier approval) from the date the form is received.

Important Update: These Forms Must Now Be Filed Online via MyTax

As of 1 September 2024, manual/paper submission is no longer accepted for these forms:

CP22 must be submitted through the e-CP22 application on the MyTax portal — only one submission per new employee is allowed per day.
CP21, CP22A, and CP22B must be submitted through e-SPC (electronic Tax Clearance application), also via MyTax.
Employers need an active digital certificate (e-CP55D) linked to their company's MyTax account to access these services, so it's worth confirming this is set up well before you need to file.
Once submitted, employers can track status and download the Tax Clearance Letter (Surat Penyelesaian Cukai, SPC) directly from the portal.

For a full click-by-click walkthrough of the e-CP22 process, see our guide: Steps to Submit CP22 for New Employees in Malaysia on LHDN MyTax Portal.

Submission Deadlines at a Glance

Form	Submission Period	Method
CP22	Within 30 days from the employee's start date	e-CP22 via MyTax
CP22A	Not less than 30 days before cessation, or within 30 days after being notified of the employee's death	e-SPC via MyTax
CP22B	Same as CP22A	e-SPC via MyTax
CP21	Not less than 30 days before the employee's expected departure date	e-SPC via MyTax

What Happens If You Don't Comply?

Non-compliance under subsection 83(2) of the Income Tax Act 1967 carries real financial and legal risk:

Fines and imprisonment: A conviction without reasonable excuse can result in a fine of between RM200 and RM20,000, imprisonment of up to 6 months, or both.
Employer liability for the employee's tax debt: If you fail to comply, you become personally liable to pay the full amount of tax owed by your employee. This becomes a debt recoverable from you through civil proceedings — meaning LHDN can pursue your company even after the employee has left.

Common Mistakes That Get These Forms Rejected

An incomplete return will not be processed, and LHDN will issue a notification letter instead — delaying tax clearance and potentially exposing you to penalties under paragraph 120(1)(c) of the Income Tax Act 1967. Watch out for:

Submitting the form through an unauthorised method
Missing employee information or remuneration details
Incomplete dates on the form
Incorrect or incomplete entries in the Declaration section
Confusing CP21 with CP22A — CP21 is only for employees leaving Malaysia; CP22A/CP22B is for employment cessation while the employee stays in the country
Releasing an employee's final salary or bonus before receiving LHDN's tax clearance letter

How CP Forms Fit Into Your Broader Payroll Tax Duties

CP21, CP22, CP22A, and CP22B are event-triggered notifications — they sit alongside, not instead of, your regular monthly and annual tax obligations:

Monthly: PCB (Potongan Cukai Bulanan) deductions are due to LHDN by the 15th of the following month. See our PCB Deduction Guide for calculation basics, or our guide to PCB for Foreign Workers if your CP21 case involves an expatriate or foreign employee.
As directed by LHDN: If an employee has outstanding tax from a prior year, LHDN may issue a CP38 directive requiring extra monthly deductions — see CP38 Malaysia: Employer Guide to Additional Tax Deductions.
Annually: Employers issue EA Forms to employees and file Form E (with CP8D) to LHDN — covered in our guide on How to Pay PCB for Employees.
At resignation or termination: CP22A ties directly into how you calculate and release an employee's final pay — see How to Handle Salary Payout After Resignation in Malaysia.

Frequently Asked Questions About CP Forms

What's the difference between CP21 and CP22A?

CP21 applies when an employee is leaving Malaysia for more than three months. CP22A applies when a private-sector employee's employment ends (resignation, retirement, contract completion) but they're staying in Malaysia. Submitting the wrong one can lead to rejection and delayed tax clearance.

Do I need to submit CP22 for part-time or contract employees?

Yes — CP22 applies to any employee engaged under a contract of service who earns taxable income, regardless of whether they're full-time, part-time, or on a fixed-term contract.

Can I still submit these forms manually?

No. Since 1 September 2024, manual submission is no longer accepted for CP21, CP22, CP22A, or CP22B — all must go through MyTax (e-CP22 or e-SPC).

What if I release an employee's final salary before getting tax clearance?

This puts your company at risk of becoming liable for any of the employee's unpaid tax. Always withhold final payments until LHDN issues the Tax Clearance Letter (SPC).

Key Takeaways

CP21, CP22, CP22A, and CP22B each serve a specific moment in the employment lifecycle — hiring, resignation, retirement, or departure from Malaysia. With online filing via e-CP22 and e-SPC now mandatory, the biggest compliance risk isn't just missing a form — it's missing the new digital process entirely. Set up your company's MyTax digital certificate ahead of time, build submission deadlines into your offboarding and onboarding checklists, and always withhold final payments until tax clearance comes through.