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Tax Clearance Letter Application in Malaysia

The Malaysian Inland Revenue Board (IRB) has issued Operational Guidelines setting out the Tax Clearance Letter (TCL) application procedures for Companies, Limited Liability Partnership (LLP) and Labuan Entities (Labuan Companies and Labuan LLP) on 31 July 2016.

These guidelines serve to provide an explanation of the TCL request procedures and documents required for obtaining the TCL. Understanding the procedures and the documents required will expedite the process of issuing the TCL.

 

Company

For TCL application, a Company is required to submit Income Tax Return Forms (ITRFs) until the latest year of assessment. If the e-Form C for the latest year of assessment has not yet been made available by the IRB, the Company can obtain the Form C (For Surat Penyelesaian Cukai (SPC) Purpose Only) from any IRB branch. This form has to be completed and submitted together with the SPC application to the IRB branch which handles the relevant income tax file.

In addition, Company TCL application has to be enclosed with relevant documents as follows:-

  1. Voluntary Winding Up By Members
    1. Form 66 : Declaration Of Solvency
    2. Form 11 : Notice Of Resolution
    3. Form 71: Notice Of Appointment And Situation Of Office Of Liquidator (Members Voluntary Winding Up)
    4. Form 75 : Liquidator’s Account Of Receipt And Payments And Statement Of The Position In The Winding Up
  2. Voluntary Winding Up By Creditors
    1. Form 65A : Statutory Declaration Of Inability Of Company To Continue Business, And That Meetings Of The Company And Its Creditors Have Been Summoned
    2. Form 11 : Notice Of Resolution
    3. Form 72 : Notice Of Appointment And Situation Of Office Of Liquidator (Creditors’ Voluntary Winding Up)
    4. Form 75 : Liquidator’s Account Of Receipt And Payments And Statement Of The Position In The Winding Up
  3. Winding Up By Court Order
    1. Receiving Order or Winding Up Order
    2. Form 61 : Statement Of Affairs
    3. Form 70 : Notice Of Appointment And Situation Of Office Of Liquidator (Winding Up By Court)
    4. Form 75 : Liquidator’s Account Of Receipt And Payments And Statement Of The Position In The Winding Up
  4. Striking Off Name Of Company
      Notice under Section 308 of the Companies Act 1965
  5. Cessation Of Business (Foreign company)
      Form 90 : Notice By Foreign Company Of Cessation Of Business
  6. Striking Off Of Dormant Company
      Form CP7

 

Limited Liability Partnership (LLP)

A limited liability partnership (LLP) applying for TCL is required to submit ITRFs until the latest year of assessment. The ITRFs have to be completed and submitted together with the TCL application form to the IRB branch which handles the relevant income tax file.

If Form PT for the latest year of assessment has not yet been made available, Form PT for the immediately preceding year of assessment can be used with certain modification.

Documents required to be submitted for application of TCL for LLP are as follows:-

  1. Voluntary Winding Up By Members
      Tax Clearance Letter application form 
  2. Winding Up By Court Order
    1. Tax Clearance Letter application form
    2. Receiving Order or Winding Up Order
  3. Striking Off Name Of LLP
    1. Tax Clearance Letter application form
    2. Notice of striking off of LLP name under Section 51 Limited Liability Partnerships Act 2012

 
Application for TCL for Company and LLP has to be submitted to the branch which handles the income tax file of the relevant company or LLP. The TCL shall be issued after all relevant and complete documents are received, and income tax including employees’ monthly tax deductions are fully paid.

In our experiences dealing with the IRB, the IRB may take months to issue the TCL for Company and LLP. Nevertheless, constant following up with the IRB officer would aid to expedite the process of issuing the TCL by the IRB.

As a leading corporate services provider, 3E Accounting provides you a cost-effective one-stop solution service that definitely makes all the procedures hassle-free to you. With our experienced tax agents, we have done lots of tax clearance for companies and LLP. Not to mention, by having our tax director who previously from the Big Four, we are ready to serve you at our best. We will go through your case and propose you the most attractive price. Please feel free to contact us at info@3ecpa.com.my for quotation and a no-obligation consultation!