Close

Employment pass cancellation

Hi Folks,

I am working in Malaysia for past 3.5 months on Employment pass, due to some personal reasons I am moving back to India on short notice. Kindly help me with below questions.

1) Do I need to cancel my EP before I leave to india.
2) Do I need to settle my tax with my company and tax department in Malaysia before I leave or can I do it later also?
3) will the immigration catch hold of me , if I don't get a tax clearance statement while departing to india ( because I have to leave india soon on personal grounds and cannot afford to stay till I get tax clearance statement)
4) what else should I collect from my employer before go back?
5) any possibilities to cancel EP from india?

Please reply me as I am in very urgent situation.

1) Do I need to cancel my EP before I leave to india.

It's your employers liability.

2) Do I need to settle my tax with my company and tax department in Malaysia before I leave or can I do it later also?

Your tax should be PAYE so deduction at source. Get and keep your final salary slip.

3) will the immigration catch hold of me , if I don't get a tax clearance statement while departing to india ( because I have to leave india soon on personal grounds and cannot afford to stay till I get tax clearance

Why does immigration need to know?

4) what else should I collect from my employer before go back?

Salary slip, your tax number etc

5) any possibilities to cancel EP from india?

See 1 above

Sorry but I disagree with what is written above.

1. Your company should cancel your EP because you have a tax liability until it is done so and that could affect any earnings you have in India. You will be reported by the company if you just leave. This will result in a blacklisting.

2. You should have had 25% deduction from your salary as you are non tax resident so there should be no additional tax to pay or no refund. If this is not the case you owe HASIL money.

3. It depends. If they see your EP cancelled but no letter regarding tax clearance they could stop you are the airport and make you stay to settle your tax. Immigration and Tax databases were linked from February this year.

4. Just keep all your documents.

5.As the pass is actually physically cancelled in your passport you cant easily do it from India. Theoretically there may be a possibility to courier your passport back to Malaysia for the cancellation. Don't know how cooperative your employer will be as they need to do that. They must be annoyed at the cost you have incurred for them as well.

Suggest you try and do as much as possible by the book and not to break rules, because it would not be good to be blacklisted here. At the end of the day your employer can advise on how quickly they could cancel the EP - it should only take 1-2 days if they use an agent or attend immigration themselves with your passport.

Check your employment contract to see if there are any penalties for resigning. e.g. they may say you have to give 3 months notice so you will also be liable for tax during that period. Tax clearance will include you paying that amount of money to HASIL via your company or direct to get clearance.

If you are breaking a lease, you are also responsible for the sum total of the rent you agreed e.g. if you took on a place for 1 year at RM2k per month you owe the landlord RM18k i.e. 9 months promised rental. The landlord could sue you if you don't pay this.

Any contract you may have entered (e.g. phone, internet) which you do not fulfil will potentially result in a court summons. You could end up with a Police record which will affect your for many years, if not always.

okay i understood.

How much time will take to clear tax things?

Your HR can tell you how long to cancel EP and you can see from your payslip if you have correctly been paying 25% tax for not - hopefully you have as that makes it easier.

Thanks for your valuable information.

One additional point is that if you are blacklisted you wont to able to get another employment pass in Malaysia in the near future. Also, if you do try to return to work here, in any event the current pass if uncancelled now will have to be cancelled anyway. You are also beholden to your current employer to issue you a NOC letter i.e. no objection to cancellation and new application if this is attempted within the current validity. So do think carefully about your future, if you see it in Malaysia.

okay i will do it. if i have any issues or help i will update you.

Thanks for valuable informations.

If we leave a week prior to employment pass expiry date will it affect our any further visa applications to Malaysia?  Pls advise

No - but you do need to do your income tax clearance, otherwise you will probably be stopped at the airport as you wont have exit clearance from HASIL

There my be a cooling off period of three months if on a EP Category III and any future recruitment would need Stage I to be completed while outside Malaysia.

New topic

Expatriate health insurance in Malaysia

Free advice and quotation service to choose an expat health insurance in Malaysia

Moving to Malaysia

Find tips from professionals about moving to Malaysia

Travel insurance in Malaysia

Enjoy stress-free travel to Malaysia