Travel Restrictions & Departure Permit: What You Need to Know

What is a tax travel restriction?

A "travel restriction" (stoppage order) is an enforcement mechanism permitted by tax law to prevent a person with tax arrears from leaving Malaysia until the tax is paid or satisfactory security is given. It is not a general "exit licence" — most travellers without arrears do not need to apply for any permit.

Source: AGC LOM — Income Tax Act 1967; HASiL — Travel Restrictions (see Official sources section).

The legal basis: s.104 ITA

Under subsection 104(1) of the Income Tax Act 1967 (ITA 1967), the Director General of HASiL may, if he considers that a person is about or likely to leave Malaysia without paying:

• (a) all tax payable (whether or not it is due);
• (b) all amounts under s.103(3),(5),(7) / 107B(3),(4) / 107C(9),(10),(10A);
• (c) debts under s.107A(2) / 109(2) / 109B(2) / 109F(2);

issue a certificate to the Commissioner of Police or the Director General of Immigration requesting that the person be prevented from leaving Malaysia until payment or satisfactory security is given.

Subsection 104(1A) allows the certificate to be issued via electronic medium. Under s.104(2), the Police/Immigration must take action, including reasonable powers to seize/detain a passport, exit permit or travel document.

Source: AGC LOM — Income Tax Act 1967 (see Official sources section).

An important difference: s.104 vs s.105 ITA

s.105 ITA differs from s.104: it concerns the refusal of customs clearance for ships/aircraft (air or sea passenger/cargo carriers) if tax has not been settled for more than 3 months, with the approval of the Minister. It is not a "departure permit" for ordinary passengers — do not confuse the two provisions.

Source: AGC LOM — Income Tax Act 1967 (see Official sources section).

The offence of leaving the country: s.115 ITA

Leaving or attempting to leave Malaysia knowing that a s.104 certificate has been issued is an offence under s.115 ITA, with the following penalties:

• A fine of RM200 – RM20,000; or
• Imprisonment of up to 6 months; or
• Both.

This offence allows arrest without warrant.

Source: AGC LOM — Income Tax Act 1967 (see Official sources section).

Company directors: s.75A ITA

Under s.75A ITA, directors bear joint/several liability for company tax. HASiL also imposes travel restrictions on directors (including RPGT cases under s.22 of the Real Property Gains Tax Act 1976).

Source: AGC LOM — Income Tax Act 1967; HASiL — 14 Topics Material (see Official sources section).

How to check your travel restriction status?

You can check your travel restriction status through:

• MyTax (Travel Restriction Check); or
• The Immigration portal: sspi.imi.gov.my/sspi/.

Source: HASiL — Travel Restrictions; HASiL — 14 Topics Material (see Official sources section).

How to apply to leave?

There are three main routes:

1. Cancellation — pay in full via ByrHasil/other methods, then submit the receipt. According to HASiL, the cancellation receipt is submitted 7 days before the travel date.
2. Temporary release — pay at least 50% of the arrears + an application letter (destination, purpose, duration) + attend/contact the HASiL office; documents are submitted 5 days before the travel date.
3. e-Travel Restriction in MyTax — for those eligible (Malaysian citizen, restriction under ITA 1967, not a director case, full payment).

Source: HASiL — Travel Restrictions; HASiL — Dewan Siswa No. 11/2024; HASiL — e-Newsletter Edition 4/2024; HASiL — 14 Topics Material (see Official sources section).

Payments

Payments are made via ByrHasil (byrhasil.hasil.gov.my) using code 084/095 (income tax) or 090 (RPGT). Warning: do not make payments to personal accounts — use only official HASiL payment methods.

Source: HASiL — Travel Restrictions (see Official sources section).

What is not covered as at the review date

• The full text of s.104(3) and the subsequent provisions-details (surrender notice, certificate validity period). This item still awaits official confirmation from HASiL — check again with HASiL before deciding.
• The current procedures in MyTax for e-Travel Restriction (flow, supporting documents). This item still awaits official confirmation from HASiL — check again with HASiL before deciding.
• The details of s.22 of the RPGT Act 1976. This item still awaits official confirmation from HASiL — check again with HASiL before deciding.

Frequently Asked Questions (FAQ)

Q. Do I need to apply for a departure permit before every trip?

A. No. Travel restrictions are only imposed if HASiL issues a s.104 certificate because of arrears. Most travellers without arrears do not need to apply for anything.

Q. I have tax arrears. Can I still fly?

A. Check your status via MyTax or the Immigration portal. If restricted, you need to pay in full (cancellation) or apply for temporary release (≥50% + application letter, documents 5 days before travel).

Q. What is the difference between s.104 and s.105?

A. s.104 restricts individuals from leaving Malaysia. s.105 concerns the refusal of customs clearance for air/sea carriers with arrears exceeding 3 months — not ordinary passengers.

Q. Can company directors be restricted?

A. Yes. Under s.75A ITA, directors bear joint/several liability for company tax and HASiL also imposes restrictions on directors.

Glossary

• s.104 ITA — preventing an individual from leaving Malaysia without paying tax.
• s.105 ITA — refusal of customs clearance for air/sea carriers.
• s.115 ITA — the offence of leaving the country knowing a s.104 certificate has been issued.
• s.75A ITA — director liability (joint/several).
• ByrHasil — HASiL's official payment portal.