Steps to Submit CP22 for New Employees in Malaysia on LHDN MyTax Portal

In Malaysia, employers must submit Form CP22 to notify the Inland Revenue Board of Malaysia (LHDN) about newly hired employees who are liable for income tax.

This form must be submitted within 30 days from the employee’s start date to ensure compliance with Malaysian tax laws.

To simplify the process, employers can submit CP22 online via the MyTax Portal, which is managed by LHDN.

However, only the company director (with an Employer role in MyTax) or an appointed Employer Representative can complete this submission.

Here’s a detailed step-by-step guide to help Malaysian employers submit CP22 online:

Key Deadlines & Digital Compliance Updates (2024-2025)

Starting 1 September 2023, all Form CP21 submissions must be made online via the MyTax e-SPC system. This marks a full move from manual form submission to digital filing under Malaysia’s tax modernisation plan.

What Employers Need to Know

CP21, CP22A, and CP22B must now be submitted through e-SPC.
Employers can track submission status and download the Tax Clearance Letter (SPC) online.
Digital certificate (e-CP55D) is required to access the portal.
CP21 must be submitted at least 30 days before the employee’s departure date.

Make sure your company’s MyTax employer account is active and linked to your authorised representative before 1 September 2024 to avoid disruption.

What Happens if Employee Leaves for Less Than 3 Months vs More Than 3 Months

Before filing CP21, employers need to understand when the form actually applies. Not every overseas trip requires CP21, it depends on how long the employee will be away from Malaysia.

Scenario	Is CP21 Required?	Employer Action
Employee leaves for under 3 months (e.g., training or short project)	No	Continue normal MTD (Monthly Tax Deduction) and keep payroll records.
Employee leaves for over 3 months or relocates overseas	Yes	File Form CP21 at least 30 days before departure and withhold final pay or bonuses until the Tax Clearance Letter (SPC) is received.

Failing to file on time can delay tax clearance and make the employer liable for unpaid taxes.

Impact of MTD (Monthly Tax Deduction) and When CP21 Might Not Apply

Even if MTD has been deducted throughout the year, CP21 still needs to be filed when an employee leaves Malaysia for more than 3 months.

MTD only covers estimated monthly tax, LHDN still needs to confirm the employee’s full-year liability before issuing a clearance.

However, if an employee resigns but stays working in Malaysia, use Form CP22A (private sector) or Form CP22B (public sector) instead of CP21.

Step 1: Log In to MyTax

To begin, employers must log in to the MyTax Portal at mytax.hasil.gov.my.

On the login page, they need to select the Identification Type and enter the Identification Number.

Next, they must use the company’s digital certificate to access the system.

Once logged in, they should navigate to the Role Selection section and choose either Employer or Employer Representative to proceed further.

Step 2: Navigate to e-CP22

After logging in, employers should go to the ezHasil Services section and select e-CP22 from the available options.

This feature allows them to submit a CP22 form online. However, it is important to note that only one submission per day is allowed for each new employee.

Step 3: Enter Employer Information

On the e-CP22 page, the system will display essential employer details such as:

the company’s name,
business registration number, and
employer tax file number.

Employers should carefully review this information and update their address, phone number, and email address if necessary.

Step 4: Choose Submission Method

Employers can submit CP22 using one of two methods:

Option 1: Data Transmission by Data Input (Manual Entry)

Enter the following employee details:
- Full Name
- Identification Type (IC or Passport)
- IC/Passport Number
- Citizenship
- Date of Birth (DD/MM/YYYY)
- Passport Expiry Date (if applicable for foreign employees)
- Monthly Salary
- Previous Employer Details (if applicable)

Click Add Employee after entering all required information.

If the employee was previously employed in Malaysia, provide the relevant details here. Click the ‘Continue’ button once all employee details have been filled in.

Option 2: Bundle Data Transmission (Bulk Upload)

Prepare a text file with employee details following LHDN's format:The file should be named using the format EmployerNo.txt (e.g., 9140005610.txt).
- It must include all required employee data.
- File size should not exceed 6MB.
Click Upload next to the Submission of Employee Data field
Select the prepared text file and upload it.

Step 5: Review and Submit

Before finalizing the submission, employers should thoroughly review all entered details to ensure accuracy.

Any incorrect information may lead to processing delays or penalties. Once verified, they can click Submit to complete the process.

After submission, the system will generate an Acknowledgment Slip, which serves as proof of submission.

Employers should print and keep this slip for their company records.

Step 6: Verify Submission Status

Employers can verify the status of their CP22 submission by logging into MyTax and navigating to e-Filing > e-Acknowledge Receipt.

This section allows them to check if the submission has been successfully processed by LHDN.

If there are any issues, employers should take immediate action to rectify them.

Source: centralhr.my

Common Mistakes Employers Make (and How to Avoid Them)

Even with good intentions, many employers still make small errors when handling Form CP21. Here are some of the most common ones and how to avoid them.

Submitting CP21 Too Late

Many employers only file CP21 a few days before the employee’s departure and causes delays in issuing the Tax Clearance Letter (SPC) and may trigger fines. Always submit CP21 at least 30 days before the employee leaves Malaysia to allow enough processing time.

Using the Wrong Form

A frequent mistake is submitting Form CP22A instead of CP21. While both deal with employment cessation, CP21 is only for employees leaving Malaysia, not those resigning locally. Submitting the wrong form can lead to rejection and delayed clearance.

Releasing Final Salary Before SPC Is Issued

Employers sometimes release the employee’s last salary or bonus before receiving tax clearance. This can make the company liable for any unpaid taxes. To avoid penalties, withhold final payments until LHDN issues the SPC.

Entering Incorrect Employee Details

Errors like the wrong passport number, name spelling, or departure date can slow down approval. Double-check every field before submitting CP21 to ensure smooth processing.

Submitting Manually After September 2024

Starting 1 September 2024, all CP21 submissions must be done online via the MyTax e-SPC system. Manual submissions will no longer be accepted, except for rare cases handled directly by LHDN. Make sure your company’s MyTax account and digital certificate are active to stay compliant.

Important Notes for Employers

Employers must submit CP22 within 30 days from the employee’s first day of work.

The e-CP22 application is available online through the MyTax portal for employers to submit the CP22 Form. Employers can refer to the User Manual for e-CP22 via MyTax > User Guide.

Employers can also access the Role Application User Manual and MyTax FAQ under MyTax > User Guide to facilitate the use of the e-SPC application.

Starting 1 September 2024, employers are required to submit notification forms for new employees through e-CP22. Manual submission of Form CP22 will no longer be allowed.

Failure to comply with Subsection 83(2) of the Income Tax Act 1967 without reasonable excuse may result in a fine of not less than RM200 and not more than RM20,000, or imprisonment for up to 6 months, or both.

Employers shall be liable to pay the full amount of tax due from their employees.

The amount due from the employer shall be a debt to the government and may be recovered through civil proceedings.

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