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Malaysia Country-by-Country Reporting (“CbCR”) Rules and Labuan CbCR Regulations have been implemented with effect from 1 January 2017.

You can access CbCR latest news or releases from the CbCR Portal of the Malaysian Inland Revenue Board’s (“MIRB”) official website.

There are some recent updates which we would like to highlight below:

Frequently Asked Questions (“FAQ”)

The MIRB has issued a FAQ on CbCR dated 19 October 2018. Please click here to access the FAQ.

In brief, the FAQ addresses the following issues:

  • Threshold: How to apply the threshold of RM 3 billion?
  • Obligation to file: If the MNE is filling the CbCR in a foreign jurisdiction, does the Malaysian entity need to file the CbCR locally?
  • Notification: How to determine the notification deadline and how many notification letters should be submitted for a MNE group?
  • Reporting currency; and
  • Questions relating to guidance in preparing the CbCR.

Notification on CbCR

The MIRB had released sample notification letters (Amendment 1/2018) for both reporting and non-reporting entities. The amendments are made to standardize and streamline certain wordings.

The notification letter shall be on MNE’s official letterhead and the submission of the notification letter (original copy) shall be addressed to:

Department of International Taxation

Headquarters Inland Revenue Board of Malaysia

Level 12, Menara Hasil

Persiaran Rimba Permai

Cyber 8, 63000 Cyberjaya

Selangor MALAYSIA

 

Reporting Entity

Reporting entity shall notify the Director General in writing if it is the ultimate holding entity (or the surrogate Malaysian holding entity), on or before the last day of the reporting financial year (“FY”). 

Please note that the notification letter will have to include details of all Malaysian and foreign non-reporting constituent entities.

The sample notification letter of reporting entity can be downloaded here.

Non-Reporting Entity

For non-reporting entity, the entity shall notify the Director General in writing of the identity and tax residence of the reporting entity, on or before the last day of the reporting FY.

The sample notification letter of non-reporting entity can be downloaded here.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Contact KPMG

If you require further information or clarification on CbCR requirements, please contact me at +603 7721 7029, Ms Chang Mei Seen at +603 7721 7028, or Mr Ivan Goh at +603 7721 7012.