LHDN Travel Ban: How To Check Your Status Or Apply Online To Lift Restriction

Malaysians love to travel, and with the festive months ahead, most might already have plans to go abroad. However, the Inland Revenue Board (IRB) has an important announcement to make regarding travel. 

This affects individuals or companies with outstanding tax arrears under Section 104 of the Income Tax Act (ACP) 1967 and Section 22 of the Real Property Gains Tax Act (ACKHT) 1976. If you are in this category, LHDN can impose an overseas travel ban on you.

What is a LDHN Stoppage Order

According to these laws, LHDN can prevent any individual or company from leaving Malaysia if they have unpaid tax arrears to the government. This travel ban is in the form of a Stoppage Order that can be issued by the LHDN Director General to ban a taxpayer from leaving Malaysia due to outstanding tax liabilities.

This restriction can be imposed if a taxpayer fails to make payment for their outstanding taxes as the last resort.

How to check travel restriction status

Those who plan to go abroad soon are advised by LHDN to check their status first through the MyTax portal which can be found at mytax.hasil.gov.my.  In addition, taxpayers can check their travel restrictions through the official portal of the Malaysian Immigration Department (JIM) at sspi.imi.gov.my/sspi.

The IRB mentioned that the travel restrictions are not meant to deny Malaysians their rights. Instead, it’s an effort to enforce existing tax laws on taxpayers who fail to settle their tax arrears. They advise taxpayers to sort out their tax payments as soon as possible to avoid these inconveniences.

How to get LHDN travel restrictions lifted?

Since 4 March 2024, applications for the lifting of travel restrictions can be made online through the MyTax portal. The cancellation requests can also be done through existing procedures and channels. For example, contacting the LHDN Contact Center at 03-8911 1000 or by visiting the nearest LHDN office.

This travel restriction  can only be lifted immediately after you settle your outstanding tax arrears online at MyTax portal at https://mytax.hasil.gov.my/.  You can pay up all your outstanding taxes and provide the following details:

• Income tax number / company registration number for companies or new identification card number / passport number for individuals.
• Payment Code and Type, Select 084/095 (Income Tax Payment) or 090 (Real Property Gains Tax Payment)
• Year of Assessment

After paying in full, you will need to present the payment receipt to the LHDN branch that handles your tax file. This receipt must be submitted 7 days before your travel date to avoid process delay

If you are unable to pay up the full amount, the option of paying in installments is possible. However, you will need to apply for a temporary release instead.

How to apply for temporary release of Stoppage Order?

If you are unable to pay in full either in cash or by online transaction,  you can still qualify for a temporary release by following these steps.

• Walk in/or contact the LHDN branch that handles your tax file
• Submit an application letter that include the destination information, purpose, and the duration of your overseas visit
• Make a payment 50% of outstanding tax amount
• Temporary release letter will be issued by specifying the period of temporary stoppage granted
• Receipt of payment and application must be submitted 5 days before the travelling date

More information about the travel restrictions can be referred to the frequently asked questions on Application for Lifting of Travel Restrictions via Quick Access at www.hasil.gov.my/individu/lain-lain/soalan-lazim-individu.

If you need help with filing your taxes, you can try using iMoney’s personal income tax guide to help smooth things out.

Read More: Tax Offences And Penalties In Malaysia