As an employer, are you aware of your obligation to report an employee’s retirement, death, departure from Malaysia, or cessation of employment to the Inland Revenue Board (IRB) by furnishing the Employee Related Notification Forms? Even if you are running a small business with fewer employees, it is crucial to familiarize yourself with the Employee-Related Notification Forms. In this article, we will explain these employee-related notification forms, including their respective deadlines for submission. 

Types of Employee-Related Notification Forms  

1. Form CP 22 – Notification of New Employees 
   Form CP22 is a form for Notification of New Employees. Employers are responsible for reporting new employees who are or are likely to be chargeable to tax within 30 days from the date of commencement of employment using Form CP22. 
   
   The completed Form CP22 must contain particulars of employer, particulars of new employee, particulars of monthly remuneration, and duly signed declaration.  
    
2. Form CP22A - Tax Clearance Form for Cessation of Employment of Private Sector Employee  
   
   Form CP22B - Tax Clearance Form for Cessation of Employment of Public Sector Employee 
   
   Form CP22A is a tax clearance form for private sector employees who ceased employment, whereas CP22B, on the other hand, is a tax clearance form for public sector employees who ceased employment.  
   
   Employers are responsible for submitting these forms to inform the IRB about an employee's resignation, retirement, or death. Detailed information such as employee's employment income up to the date of resignation, retirement, or death, shall be provided.  
   
   According to the tax regulations, employers are required to notify the IRB and apply for a tax clearance letter not less than 30 days before the cessation of employment. However, in the case of an employee's death, employers should notify the IRB not more than 30 days after being informed of the death.  
   
   Additionally, employers shall use the applicable notification forms (CP22A or CP22B) based on their business sector (private or public) to ensure compliance. 
    
3. Form CP21 - Notification by Employer of Departure from the Country of an Employee 
   
   Form CP21 is a form used to notify the IRB when an employee who is chargeable to tax for income from employment, is about to leave or intends to leave Malaysia for a period exceeding 3 months. Employers shall furnish Form CP21 not less than 30 days before the expected date of the employee’s departure.    

Furthermore, employers are responsible for withholding monies payable to employees until 90 days after the receipt of the form by the IRB, except with the permission of the IRB. In fact, there are certain circumstances where employers are not required to submit the above-mentioned forms. Are you interested in learning more about this topic?