Borang CP21 needs to be generated and submitted at least ONE (1) month before the employee is about to depart from Malaysia.

As an employer, you will need to notify LHDN if / when your employee is about to leave Malaysia or intend to leave Malaysia for a period exceeding 3 months.

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Here's a sample case:

Ahmad Hasan has resigned and will leave Malaysia on 30 April 2022.

Therefore, the employer needs to submit Borang CP21 within ONE (1) month before 30 April 2022.

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In addition, you must withhold money payable to the employee at least 90 days until you have received a Clearance Letter from LHDN's Assessment Branch. You will need to state the amount retained in Borang CP21.

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To do this, you will need to ensure that you enter the employee's Resign Date in Employee Profile and tick the "Is Leaving Country" checkbox.

Thereafter, you can head to Payroll > Payroll Settings > CP21 and click on the "Generate CP21" button (blue color).

Do ensure that at least ONE (1) month of salary payment has been processed in payroll before generating the form.

Here's a short video clip to help you along:

Once the employee's details in Borang CP21 are confirmed, you can proceed to download the form and proceed to submit it at the nearest LHDN branch.