CP22 Form — New Employee Notification (Malaysia)
BORANG CP22 — PEMBERITAHUAN OLEH MAJIKAN
CP22 FORM — NOTIFICATION BY EMPLOYER OF COMMENCEMENT OF EMPLOYMENT OF AN EMPLOYEE
Income Tax Act 1967 (Act 53), Section 83(2) | Income Tax (Deduction from Remuneration) Rules 1994
Lembaga Hasil Dalam Negeri Malaysia (LHDN) — Inland Revenue Board of Malaysia
Deadline: Within 30 days of the employee's commencement date. Late submission is an offence under Section 120(1)(b) of the Income Tax Act 1967 — fine of RM 200 to RM 20,000 and/or imprisonment up to 6 months.
PART A: EMPLOYER DETAILS
Employer Name: [Employer Name]
LHDN Income Tax File No. (E-Number): [Employer Tax File]
Business Address: [Employer Address]
Contact Number: [Employer Phone]
PART B: NEW EMPLOYEE DETAILS
Full Name: [Employee Name]
MyKad / Passport No.: [Employee NRIC]
Date of Birth: [Employee DOB]
Gender: [Employee Gender]
Nationality: [Employee Nationality]
Residential Address: [Employee Address]
LHDN Tax Reference No.: [Employee Tax File]
Work Permit Type: [Work Permit Type]
Work Permit No.: [Work Permit Number]
Work Permit Expiry: [Work Permit Expiry]
PART C: EMPLOYMENT DETAILS
Date of Commencement of Employment: [Commencement Date]
Job Title / Designation: [Job Title]
Employment Type: [Employment Type]
Expected Monthly Remuneration (RM): [Monthly Remuneration]
Previous Employer / Prior Income in Same Calendar Year: [Previous Employer]
MTD/PCB Commencement: The employer confirms that Monthly Tax Deduction (MTD/PCB — Potongan Cukai Berjadual) will be calculated and remitted to LHDN from the first month of employment in accordance with the Income Tax (Deduction from Remuneration) Rules 1994, using LHDN's PCB Calculator.
EPF/SOCSO/EIS: Employer and employee contributions to EPF (Act 452), SOCSO (Act 4), and EIS (Act 800) will commence from the first month of employment as required by law.
DECLARATION
I declare that the information provided in this CP22 is true and accurate to the best of my knowledge and belief. I understand that providing false or inaccurate information is an offence under the Income Tax Act 1967 (Act 53).
Date of Notification: [Submission Date]
Employer Representative: _________________________ Date: _____________
Name and Designation: _________________________________________________
Employer / Authorised Representative
________________
Signature
What Is a CP22 Form — New Employee Notification (Malaysia)?
A CP22 Form — New Employee Notification in Malaysia records the wages, deductions, and contributions reportable for an employee.
The CP22 is distinct from the CP22A, which is the notification required when an employee ceases employment, retires, or leaves Malaysia permanently. Together, the CP22 and CP22A bookend the employee's employment period and enable LHDN to reconcile the employee's tax affairs throughout their career. The CP22 is part of the thorough employer tax compliance framework under Part VIII of the Income Tax Act 1967, which imposes obligations on employers to deduct, remit, report, and account for the tax affairs of their employees.
Employers in Malaysia are required to implement the Monthly Tax Deduction (MTD) scheme, also known as Potongan Cukai Berjadual (PCB), under the Income Tax (Deduction from Remuneration) Rules 1994, from the first month of a new employee's employment. The amount deducted each month is calculated based on the employee's gross remuneration, tax relief claims, and applicable rebates under Schedule 1 of the Income Tax Act 1967, using the PCB calculation table or LHDN's PCB Calculator (Kalkulator PCB). Failure to implement MTD from the commencement of employment can result in under-deduction and LHDN compliance issues.
For new employees who are foreign nationals, the CP22 must also capture their tax residency status and work authorisation details, as the applicable tax rate differs for tax residents (progressive rates 0-30%) and non-residents (flat rate 30% on Malaysian-source income) under Section 7 of the Income Tax Act 1967.
The legal framework governing the CP22 Form — New Employee Notification (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a CP22 Form — New Employee Notification (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Employment Act 1955 (Act 265) sets the foundational requirements.
When Do You Need a CP22 Form — New Employee Notification (Malaysia)?
A CP22 form must be completed and submitted to LHDN in Malaysia in the following circumstances.
A CP22 is required within 30 days whenever a new employee — whether Malaysian or foreign national — commences employment with a Malaysian employer. The obligation applies regardless of the employee's income level, contract type (permanent, fixed-term, probationary), or whether the employee is expected to meet the income tax threshold.
A CP22 is needed when a company hires its first employee, formalising the employer-employee relationship with LHDN and establishing the employer's obligation to remit Monthly Tax Deductions (PCB) under the Income Tax (Deduction from Remuneration) Rules 1994.
A CP22 is required when an employee who previously worked elsewhere joins a new employer, as the new employer must independently notify LHDN of the commencement of the new employment relationship, enabling LHDN to reconcile the employee's cumulative income across multiple employers in the same year.
A CP22 is needed when a company director commences receiving directors' fees or remuneration from the company — directors' remuneration constitutes employment income under Section 13(1)(a) of the Income Tax Act 1967 and must be reported from the date remuneration commences.
A CP22 is required when a foreign employee on an Employment Pass, Residence Pass — Talent (RP-T), or Professional Visit Pass issued by the Immigration Department of Malaysia commences work, as the employer must register the foreign employee's employment with LHDN for income tax withholding purposes.
A CP22 is needed when a retired or previously unemployed individual rejoins the workforce and becomes an employee, re-establishing their status as an assessed employee under the Income Tax Act 1967 framework.
Parties in Malaysia should prepare a CP22 Form — New Employee Notification (Malaysia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your CP22 Form — New Employee Notification (Malaysia)
A complete CP22 / Borang CP22 for Malaysia must contain the following information.
Employer information: The employer's full legal name as registered with SSM, LHDN Income Tax File Number (E-Number for employers), employer reference number with LHDN, registered address, and principal place of business. The nature of the employer's business (industry type / MSIC code) may also be required.
Employee personal details: The new employee's full legal name as per MyKad or passport, MyKad number (for Malaysians) or passport number (for foreign nationals), date of birth, gender, residential address in Malaysia, and personal income tax reference number with LHDN (if already registered). For foreign employees, the work permit type (Employment Pass, Professional Visit Pass, etc.) and expiry date.
Employment commencement details: The date the employee commenced employment (the trigger date for the 30-day notification period under Section 83(2) of the Income Tax Act 1967), the employee's job title and department, and whether the employment is permanent, fixed-term, or probationary.
Expected remuneration: The employee's agreed monthly salary or remuneration, including basic salary, fixed allowances, and any expected regular payments. This enables LHDN to pre-assess the employee's income tax obligation and verify PCB deductions.
Previous employment income: If the new employee was previously employed in the same calendar year, their gross income from previous employment(s) during the year must be disclosed to enable accurate cumulative PCB calculation under the Income Tax (Deduction from Remuneration) Rules 1994. The new employer should request the employee's EA Form or cessation documentation from their previous employer.
Declaration: A declaration signed by the employer (or authorised signatory such as the Finance Manager or HR Director) confirming the accuracy of the information, with the date of submission. Electronic submission through LHDN's e-Data system or e-Payroll constitutes the official record.
Additional compliance elements for a CP22 Form — New Employee Notification (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
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Forms Legal. (2026). CP22 Form — New Employee Notification (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/employment/forms/cp22-form-malaysia
"CP22 Form — New Employee Notification (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/employment/forms/cp22-form-malaysia.
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author = {{Forms Legal}},
title = {CP22 Form — New Employee Notification (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/employment/forms/cp22-form-malaysia}},
note = {Free legal document template. Based on Employment Act 1955 (Act 265)}
}Frequently Asked Questions
Under Section 83(2) of the Income Tax Act 1967 (Act 53), an employer in Malaysia must submit the CP22 (Borang CP22) to LHDN within 30 days of a new employee commencing employment. The 30-day period runs from the first day the employee actually commences work, not from the date the employment contract was signed. For electronic submission, the CP22 is submitted through LHDN's e-Data system or integrated payroll software. For manual submission, it is filed at the employer's nearest LHDN processing centre. An employer who fails to submit the CP22 within the prescribed period without reasonable cause commits an offence under Section 120(1)(b) of the Income Tax Act 1967, which carries a fine of between RM 200 and RM 20,000 and/or imprisonment for up to 6 months for each failure. Under Malaysia law, Employment Act 1955 (Act 265), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
The CP22 (Borang CP22) and CP22A (Borang CP22A) are complementary LHDN employer notifications required under Section 83 of the Income Tax Act 1967. The CP22 is a new employee notification — submitted within 30 days of an employee commencing employment — that notifies LHDN of the commencement of the employment and the employee's expected remuneration. The CP22A is a cessation of employment or departure notification — submitted to LHDN at least 30 days before an employee ceases employment or leaves Malaysia — that triggers LHDN's tax clearance process (Surat Penyelesaian Cukai, SPC) to ensure all taxes due are settled before the employee's final payment or departure. Together, CP22 at the start and CP22A at the end ensure LHDN can track the employee's full tax exposure throughout their employment with a particular employer.
Yes. The obligation to submit a CP22 under Section 83(2) of the Income Tax Act 1967 applies to all employees, including part-time workers, contract employees, probationers, and daily-rated workers, as long as they are engaged under a contract of service. The Income Tax Act 1967 does not distinguish between full-time and part-time employment for notification purposes. Even if a part-time employee's income falls below the income tax threshold (RM 34,000 chargeable income per year after reliefs), the employer must submit the CP22 to enable LHDN to maintain an accurate employment record. Monthly Tax Deduction (PCB) obligations are assessed on each individual employee's income level — if the employee's income is below the PCB deduction threshold, the employer still has the CP22 notification obligation but may have no PCB to deduct or remit.
Monthly Tax Deduction (MTD/PCB — Potongan Cukai Berjadual) for a new employee in Malaysia is calculated under the Income Tax (Deduction from Remuneration) Rules 1994 using LHDN's PCB calculation method. The employer determines the employee's monthly gross taxable remuneration (salary, allowances, commissions), annualises it, deducts standard relief for EPF contributions (11% of salary, up to RM 4,000), the individual relief (RM 9,000), and any reliefs declared by the employee on Form TP1, then calculates the annual tax on the net chargeable income under Schedule 1 of the Income Tax Act 1967, divides by 12, and remits that monthly amount to LHDN by the 15th of the following month. LHDN's free PCB Calculator is available at pcb.hasil.gov.my. For new employees joining mid-year, the calculation must account for previous employment income in the same year to avoid under-deduction.
Yes. When a foreign national commences employment in Malaysia under an Employment Pass, Residence Pass — Talent (RP-T), or other work authorisation, the Malaysian employer must submit a CP22 to LHDN within 30 days of commencement, regardless of the employee's tax residency status. Foreign employees who are tax residents (present in Malaysia for 182 or more days in a calendar year under Section 7 of the Income Tax Act 1967) are taxed at progressive resident rates ranging from 0% to 30%. Non-resident foreign employees (present for fewer than 182 days) are taxed at a flat rate of 30% on all Malaysian-source income, without entitlement to personal reliefs. The employer must implement the correct MTD/PCB deduction from the first month of employment. Special rules apply under Malaysia's Double Taxation Avoidance Agreements (DTAAs) — for example with Singapore, the UK, or Australia — where treaty relief may reduce the withholding obligation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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