Employers use CP22 to inform LHDN about new hires, while CP22A applies to departing employees. To ensure proper tax file setup and clearance, employers must submit CP22 within 30 days of hiring and CP22A at least 30 days before an employee leaves.
CP22 Explained: Telling LHDN About a New Employee
CP22 is the form that tells the Inland Revenue Board (LHDN) about a new hire at your company. It helps LHDN start or update the employee’s tax file and apply the right Monthly Tax Deduction (MTD/PCB) rates from day one. Who Needs to Submit CP22? Every employer who hires a new employee likely to have chargeable income must submit CP22. In some cases, you might not need to submit it:- When employees earn less than the MTD threshold
- If employees don’t have to pay tax
- For jobs where ending work doesn’t lead to any payout
When Must CP22 Be Submitted?
Employers need to submit CP22 within 30 days after an employee starts working.How to Submit CP22?
Starting September 2024, employers must file CP22 online through MyTax’s e-CP22. MyTax no longer accepts paper forms. Penalty for Not Submitting If employers don’t submit CP22, they may face:- Fines between RM200 and RM20,000
- Jail time up to six months
CP22A in Focus: Reporting When an Employee Leaves
While CP22 informs about job starts, CP22A tells the government when someone stops working in a private company. It kicks off the tax check and makes sure all taxes are paid up. When You Need to Send CP22A You need to send CP22A when a worker leaves because they:- Quit
- Retire
- Get fired
- Leave Malaysia for good
- Send CP22A at least 30 days before the worker’s last day, or
- Within 30 days of finding out about the worker’s death
CP22 vs CP22A: Main Differences
| Aspect | CP22 | CP22A |
| Purpose | Notify LHDN of a new employee | Notify LHDN of cessation of employment |
| Timing | Within 30 days of start date | 30 days before cessation / 30 days after death |
| Employer Duty | Ensures correct MTD calculation | Ensures tax clearance (SPC) |
| Effect | Activates tax file and PCB deductions | Allows LHDN to verify outstanding taxes |
Who Must Submit CP22A?
Every private-sector employer needs to submit CP22A when a worker leaves — no matter the company’s size or field. This includes:- Small and medium businesses
- Big companies
- Startups
- Firms that hire foreign workers who pay income tax in Malaysia
Why CP22 and CP22A Matter
Some bosses don’t realize how crucial CP22 and CP22A are, but these forms have a big impact on Malaysia’s tax system:- Makes sure employees’ tax records are correct
- Checks PCB deductions are right
- Stops problems during audits
- Shows the employer follows the rules
- Stops future arguments about wrong reports
How to Get and Submit CP22 & CP22A
Now, both forms are online. Here’s how it works:1. Sign In to MyTax
- CP22: Use e-CP22
- CP22A: Use e-SPC
2. Give Necessary Information
- CP22: Worker’s details, company info first day, expected taxable earnings
- CP22A: Why the job ended final pay info, perks, extras, and take-outs
3. Hand In On Time
- CP22: Within 30 days of hiring someone
- CP22A: 30 days before the job ends or 30 days after hearing about a death
4. Hold Back Last Payments
For CP22A, keep all payments until LHDN gives the SPC tax clearance.5. Keep Good Records
Save digital and paper files to be ready for checks. A payroll or HRMS system makes this much easier. What’s New for Employers- You must submit CP22 & CP22A through MyTax / e-SPC (paper forms are out)
- Big companies can now do batch submissions
- Mistakes in NRIC, dates, or pay details might slow down SPC issuing
- It’s on you to hold payments until you get the go-ahead
What Could Go Wrong If You Don’t Follow the Rules?
If you miss the CP22 or CP22A deadlines, you might face these issues:- Fines ranging from RM200 to RM20,000
- Jail time up to six months
- Held-up salary payments for workers
- Higher chances of getting audited
- Harm to company image
Ways HR & Accounting Programs Can Help
It’s a real headache to keep tabs on new hires, people quitting, and due dates — this goes double for small businesses where staff come and go often. New software makes following the rules easier by:- Tracking hire and exit dates without human input
- Creating payroll reports for LHDN filings on its own
- Putting all worker info (start date NRIC last day) in one place
- Helping with e-SPC group filings
- Cutting down on slip-ups and holdups
To Wrap Up
CP22 and CP22A might seem like basic notices, but they play a key role in Malaysia’s payroll compliance system. Knowing when and how to submit them helps companies steer clear of fines, keep accurate tax records, and build employee trust. With the right tools — an all-in-one solution like Info- HRMS & Accounting Software — handling CP22 and CP22A becomes a smooth part of your payroll process.Frequently Asked Questions:
How do CP22 and CP22A differ?
CP22 tells LHDN about a new employee starting work, while CP22A reports when employment ends. You need to submit CP22 within 30 days of hiring someone. For CP22A, you should submit it 30 days before the employee leaves.
Do I have to file CP22 for every new hire?
You must file CP22 for employees who will have taxable income. Employees earning below the PCB threshold might not need it. Check LHDN’s current rules to be sure.
When should CP22A be submitted?
The employer needs to submit CP22A at least 30 days before the employee’s final work day. In case of an employee’s death, the submission should happen within 30 days of learning about it.
Can final salary be paid before CP22A clearance?
No. Employers must hold back all final payments. They can release these after LHDN gives them the tax clearance letter (SPC).
How can software help with CP22 and CP22A compliance?
HRMS and payroll software make CP22 and CP22A compliance easier. They send automatic reminders, keep employee records, create payroll reports, and simplify e-SPC submissions. This cuts down on the risk of non-compliance.