Malaysia Certificate of Residence Application (COR)

3E Accounting can assist in your COR Application. The processing time is around 7 to 14 working days. Our processing fee for application of COR is From RM600 per application.

A COR is issued to confirm the residence status of the taxpayer for the purpose of taxation. Malaysia has a network of Double Taxation Agreement (DTA) with her treaty partners. The COR enable the Malaysian tax residence to claim the tax benefit under the DTA and to avoid being tax twice on the same income.

The Avoidance of DTA is an agreement signed between Malaysia and another country that serves to relieve double taxation of income earned in one country by a resident of the other country. A treaty country refers to a country that has signed a DTA with Malaysia.

The DTA states the taxing rights between Malaysia and her treaty partner on different types of income arising from cross-border economic activities between the two countries. It also provides for tax reduction or exemption on certain types of income.

Only the tax residents of Malaysia and the respective treaty country can enjoy the benefits of a DTA. Malaysia has concluded about 69 effective DTA. For information on the varying rates of withholding tax on interest, royalty and technical fees, see “DTA Agreement Rates“.

When you earn foreign income from a treaty country, you may be subject to tax in that foreign country. However, you may wish to claim the DTA benefits that entitle a Malaysia tax resident to enjoy a reduced tax rate or a tax exemption in that foreign country.

To enjoy this benefit, you need to submit the Certificate of Residency (COR) to the foreign tax authority to prove that you are a Malaysia tax resident.

Please refer Determination of the Residence Status to determine whether you are a Malaysia tax resident or not.

There are 2 methods to apply for COR namely:

i. manually; or
ii. e-Residence

Application for COR can be made to any Branches of the Inland Revenue Board (IRB). However, for the taxpayers of the Corporate Tax Department (CTD)/ Big Taxpayer Branch (BTB) and Jalan Duta Branch (JDB), the application should be submitted to the Department of International Taxation (DIT). The application that has been sent to CTD/ BTB and JDB will be forwarded to DIT for processing.

The address for Department of International Taxation is as follows:

Headquarters of Inland Revenue Board of Malaysia
Department of International Taxation
Menara Hasil Level 12
Persiaran Rimba Permai
Cyber 8
63000 Cyberjaya
Selangor, Malaysia
Tel: 03-83138888 (Ext. 21218/ 21231/ 21232)
Fax: 03-83137848/ 03-83137849

The taxpayers that need to apply for COR manually are:

1. Individual taxpayers;
2. Partners (individual) of a partnership;
3. Taxpayers (individual or company) whose tax files are being handled by the Non Resident Branch;The application for COR is to be send to the Non Resident Branch at the following address:Inland Revenue Board of Malaysia
   Non Resident Branch
   3rd Floor, 6 – 8 Blok 8
   Kompleks Bangunan Kerajaan
   Jalan Duta
   50600 Kuala Lumpur
   Tel: 03-62091000
   Fax: 03-62019745
4. COR for Saudi Arabia, Indonesia, France, Singapore and Switzerland need to be made in their special Forms which could be downloaded from their official website.
5. Taxpayers (individual or company) whose tax files are being handled by Labuan BranchThe COR application should be send to the Labuan Branch at the following address:Inland Revenue Board of Malaysia
   Labuan Branch
   Unit E.004 dan E.005
   1st Floor, Aras Podium
   Kompleks Ujana Kewangan
   Jalan Merdeka
   87000 W. P. Labuan

Application for COR for companies and trust files, other than the one mentioned above, can apply manually or through e-Residence.

For all COR application, the Form STM1 is to be completed. Where application is for more than one certificate, the Form STM1A should also be completed.

1. Companies
   For application of COR for year of assessment where the Return Form is not yet due, the supporting documents that should be submitted are:

• A copy of the Minutes of Board of Directors’ Meeting that was held in the year being applied; or
• A confirmation letter signed by a director, stating that the management and control of the company are exercised in Malaysia for the year of assessment applied; and
• A copy of Form 49 from Companies Commission of Malaysia (CCM)
• Individual
  • Passport, original and photocopies; and
  • List of movement in/out Malaysia for the year of assessment applied.
• III. PartnershipThe residence status of an individual, who is a partner of a partnership, is determined pursuant to Section 7, Income Tax Act, 1967. The residence status of a company, being a partner of a partnership, will be determined pursuant to Section 8, Income Tax Act 1967. The supporting documents required are as stated in paragraphs (I) and (II) above.
• Trust
  • A copy of the trust deed (for newly registered file)

All information required and necessary documents as in the Checklist are to be enclosed.

3E Accounting can assist in your COR Application. The processing time is around 7 to 14 working days. Our processing fee for application of COR is From RM600 per application.

Steps to apply for COR

1. Kindly email us at info@3ecpa.com.my for the following information:-
   

   INFORMATION REQUIRED	TAXPAYER
   	INDIVIDUAL	PARTNERSHIP	COMPANY	TRUST
   Name of Taxpayer	√	√	√	√
   Income Tax Reference Number	√	√	√	√
   Principal business activity	√	√	√	√
   Business Address	√	√	√	√
   Treaty Country	√	√	√	√
   Year of Assessment required	√	√	√	√
   Type of Income received	√	√	√	√
   Period of Payment	√	√	√	√
   Amount of payment received	√	√	√	√
   Name and address of Foreign Payer	√	√	√	√
   Correspondence Address of Taxpayer:	√	√	√	√
   Name and telephone number of contact person	√	√	√	√
   Applicant’s email address	√	√	√	√
   A copy of the Passport and Employment Pass (Original document required for verification)	√	√
   List of movement in / out of Malaysia	√	√
   A copy of the minutes of the Board of Directors’ meeting or a confirmation letter signed by the director regarding the management and control of the company are exercised in Malaysia (if the Tax Return Form is not due)			√
   A copy of the trust deed (for newly registered file)				√
   A copy of Form 49 from Companies Commission of Malaysia (SSM)			√

2. Payment of our processing fee – From RM600
3. Preparation of application form and send to you for approval. Kindly sign and scan back to us for processing.
4. Submission the application to IRB
5. Receive the COR in 7 to 14 days.
6. Kindly remind that you do not require to apply for another COR for similar transaction in the same country.