Moving from Malaysia to India: EPF + LHDN
LHDN clearance, EPF leaving-country withdrawal, MM2H cancel, and India tax on lump sum.
The 60-second version
Malaysian exit requires LHDN clearance and EPF withdrawal decision. I cancel MM2H if applicable, close MYR bank, and map India RNOR for foreign pension.
EPF withdrawal is the Malaysia cash event
Malaysia taxes on territorial basis for non-citizens — I file departure notification with LHDN if I had Malaysian-source income.
EPF (KWSP) allows full withdrawal when leaving Malaysia permanently — taxable in India in receipt year unless RNOR exempt.
MM2H visa holders must cancel social visit pass and notify immigration before India relocation.
ASEAN cluster: Singapore return guide.
Malaysia lanes after departure
| Item | Malaysia | India |
|---|---|---|
| Salary tax | PCB ends | Residency-based |
| EPF withdrawal | Lump sum MYR | Taxable on receipt |
| MM2H | Cancelled | OCI entry |
| MYR bank | Close | Wire to NRE |
| ASB/ASNB | Redeem or keep | Schedule FA if retained |
Malaysia exit sequence
LHDN clearance
File final PCB year; obtain tax clearance if employer requires.
EPF withdrawal
Submit leaving-country form with air ticket proof.
MM2H cancel
Immigration stamp — fixed deposit release.
Bank closure
Maybank / CIMB — wire to NRE.
India RNOR
Declare EPF receipt; Form 67 if MY tax withheld.
Exit flow
Malaysia export kit
- EPF statement.
- LHDN PCB slips.
- MM2H cancel letter.
- Bank closure.
- Employment reference.
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ASNB units
Redeem before bank closure — proceeds to same MYR account then wire.
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Keep Malaysian PR?
Possible — but India residency triggers global tax as ROR.
Partial EPF withdrawal?
Leaving-country is full withdrawal for non-citizens typically.
MM2H deposit timing?
Released after immigration cancel — 2–4 weeks.
Malaysia rental property?
Retain — declare India Schedule FA + MY rental tax.
RSU from MY employer?
MY-source in departure year — LHDN + India split year.
Student visa exit?
No EPF — simpler bank close path.
Your country's rules are the starting point, not the finish line.
Tax exits, pension continuity, banking notifications — the India side has its own rules too. Get both sides clear.