LHDN Travel Ban in Malaysia: How to Check and Lift a Stoppage Order
LHDN can stop you from leaving Malaysia if you owe tax. Under section 104 of the Income Tax Act 1967, and section 22 of the Real Property Gains Tax Act 1976 for RPGT, the Director General of Inland Revenue may issue a certificate to the Immigration Department or the police, who must then prevent you from leaving the country. The restriction is cancelled once the amount stated in the certificate is paid in full. If you cannot pay in full, LHDN may grant a temporary release for a particular trip after you pay at least half of the amount and agree to pay the balance by instalments.
Company directors can be stopped for their company’s unpaid tax. This article explains how a stoppage order works, how to check whether you are affected, how to have it lifted, and what to do if you dispute the tax.
Key takeaways
- A stoppage order is a certificate issued by LHDN under section 104 of the Income Tax Act 1967 directing the Immigration Department or the police to stop a taxpayer leaving Malaysia.
- It can cover unpaid income tax, increases for late payment and certain withholding tax debts, and RPGT under section 22 of the Real Property Gains Tax Act 1976.
- A director who is personally liable for the company’s tax under section 75A can be stopped for the company’s debt.
- Paying the amount in full cancels the restriction. A temporary release for a specific trip generally requires payment of at least 50% and an instalment plan for the rest.
- Appealing against the assessment does not stop the tax being payable, so a dispute about the amount does not by itself lift the restriction.
On this page
- What is an LHDN stoppage order?
- Can I be stopped from travelling because of my company’s tax?
- How do I check whether I am under a travel restriction?
- How do I get the travel ban lifted?
- What if I cannot pay the full amount?
- What if I disagree with the tax LHDN says I owe?
- How can I avoid a travel restriction?
- Frequently Asked Questions
What is an LHDN stoppage order?
Section 104 of the Income Tax Act 1967 allows the Director General of Inland Revenue to issue a certificate to the Commissioner of Police or the Director of Immigration where a taxpayer owes tax and the Director General believes the taxpayer is about to leave Malaysia without paying it. On receiving the certificate, those officers must prevent the taxpayer from leaving, which can include holding his or her travel documents. LHDN calls this a stoppage order. In everyday terms, it is a travel ban.
According to LHDN’s Public Ruling No. 12/2015 on recovery from persons leaving Malaysia, the certificate can cover unpaid tax, increases imposed for late payment or underpaid instalments, and debts arising from withholding tax on payments to non-residents. LHDN does not have to show that you intend to leave Malaysia permanently. Arrears of real property gains tax can lead to the same restriction under section 22 of the Real Property Gains Tax Act 1976.
Can I be stopped from travelling because of my company’s tax?
Yes, if you are a director who is personally liable for the company’s tax. Under section 75A of the Income Tax Act 1967, a person who was a director during the period when the tax was payable, and who alone or together with associates owns or controls at least 20% of the company’s ordinary share capital, is jointly and severally liable with the company for its tax and for tax it should have deducted from employees’ salaries. LHDN’s public ruling confirms that a stoppage order may be issued against such a director for the company’s tax and debts.
This often comes as a surprise to directors of small companies, who may learn of the restriction only at the airport. If you are or were a director of a company with tax arrears, check your status before you travel. See Are Directors Personally Liable for a Company’s Unpaid Tax in Malaysia?
How do I check whether I am under a travel restriction?
You can check your status online through LHDN’s MyTax portal or through the Immigration Department’s online travel status check. LHDN encourages taxpayers to check before booking overseas travel, particularly before holiday periods.
Check early rather than on the day of travel. If a restriction is in place, you will need time to pay or to apply for a temporary release, and LHDN asks for supporting documents several days before departure.
How do I get the travel ban lifted?
The restriction is cancelled when the amount stated in the certificate is paid in full. Payment can be made online through LHDN’s ByrHASiL portal or at LHDN payment counters. Keep the receipt and send proof of payment to the LHDN branch that handles your tax file, so that it can cancel the restriction with the Immigration Department.
Allow time for the cancellation to take effect before you travel. If you pay by cheque, the restriction is lifted only after the cheque clears. Ask the branch for written confirmation that the restriction has been revoked and keep it with your travel documents.
What if I cannot pay the full amount?
LHDN may grant a temporary release for a specific trip. You, or someone acting for you, contact the branch handling your file and provide:
- a letter stating the destination, purpose and duration of the trip;
- proof of payment of at least 50% of the outstanding tax;
- an arrangement to pay the balance by instalments.
LHDN then issues a release letter for the approved travel period. Its website asks for the application and payment receipt at least five days before the travel date. If you fall behind on the instalments agreed for a temporary release, later applications may be refused. Under Public Ruling No. 12/2015, temporary release is not available to foreign nationals, and the Director General may also lift the restriction where adequate security for payment is provided.
What if I disagree with the tax LHDN says I owe?
A dispute about the amount does not lift the restriction by itself. Tax charged in an assessment is payable even if you appeal against it. The proper way to dispute an assessment is an appeal to the Special Commissioners of Income Tax, made by filing Form Q within 30 days after the notice of assessment is served, under section 99 of the Income Tax Act 1967. See Challenging an LHDN Decision: SCIT Appeal or Judicial Review?
A court challenge to the stoppage order itself may be possible in limited situations, for example where the certificate names the wrong person, relates to tax that has already been paid, or was issued against someone who is not liable. The Federal Court held in Government of Malaysia v Loh Wai Kong [1979] 2 MLJ 33 that there is no constitutional right to travel abroad, so a challenge will usually turn on whether the tax is actually owed and whether the correct procedure was followed. In most cases, paying or obtaining a temporary release while the dispute proceeds is the practical route.
How can I avoid a travel restriction?
Most restrictions follow arrears that could have been dealt with earlier. To reduce the risk:
- keep your address and contact details with LHDN up to date, so that notices of assessment and reminders reach you;
- respond to notices promptly and pay, or arrange instalments, before the due date;
- if you disagree with an assessment, file Form Q within 30 days while you pay or negotiate payment;
- if you are a director, check the company’s tax position, including tax deducted from employees’ salaries;
- check your travel status before booking any overseas trip.
See also LHDN Tax Audit in Malaysia: The Process, Your Rights and Penalties.
Frequently Asked Questions
How do I know if LHDN has banned me from travelling overseas?
You can check your travel status through LHDN’s MyTax portal or the Immigration Department’s online travel status check. Do this before booking any trip, because otherwise you may not learn of a restriction until you reach the airport.
How long does it take to lift an LHDN travel ban?
Once the amount in the certificate is paid in full and proof of payment is given to the LHDN branch handling your file, LHDN cancels the restriction with the Immigration Department. Allow several working days before you travel, and longer if you pay by cheque, because the restriction is lifted only after the cheque clears.
Can I travel if I pay only part of the tax?
Part payment does not cancel the restriction. You can apply for a temporary release for a specific trip, which generally requires payment of at least 50% of the outstanding tax and an instalment arrangement for the balance. LHDN asks for the application at least five days before travel.
Can a company director be banned from travelling for the company’s tax?
Yes. A director who is personally liable for the company’s tax under section 75A of the Income Tax Act 1967, broadly one who owns or controls at least 20% of the company’s ordinary share capital alone or with associates, can be made subject to a stoppage order for the company’s unpaid tax.
Does appealing against the assessment lift the travel ban?
No. Tax charged in an assessment remains payable even if you appeal. You should still file your appeal on time, and pay the tax or apply for a temporary release if you need to travel while the appeal is pending.
Need advice on your own situation?
Every case turns on its own facts and documents. Our lawyers in Puchong and Mont Kiara advise once we have reviewed your documents at a consultation, online or in person.
Related reading
This article is general information on Malaysian law as at October 2026 and is not legal advice. Laws and procedures change, so please seek advice on your own facts before acting.
