Malaysia Country-by-Country Reporting (“CbCR”) Rules and Labuan CbCR Regulations have been implemented with effect from 1 January 2017.
The CbCR Rules/ Labuan CbCR Regulations apply to MNE Groups with total consolidated group revenue in the financial year (“FY”) preceding the reporting FY of at least Malaysian Ringgit (“RM”) 3 billion.
“Reporting FY” means that FY the financial and operational results of which are reflected in the Country-by-Country Report.
MNE Group is required to assess its consolidated group revenue on a yearly basis to determine whether the Group is subjected to the CbCR Rules/ Labuan CbCR Regulations for a particular reporting FY.
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 FY.
Please note that the notification letter will have to include details of all Malaysian and foreign non-reporting constituent entities.
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.
If your Company is subjected to the CbCR Rules/ Labuan CbCR Regulations, you should identify the reporting entity for the Group and notify the Director General in writing before the stipulated deadline.
As prescribed in the CbCR Rules/ Labuan CbCR Regulations, the deadline to file the CbCR notification would be on or before the last day of the reporting FY . Having said that, the CbCR notification has to be filed on a yearly basis if your Group is subjected to the CbCR Rules/ Labuan CbCR Regulations for that particular reporting FY.
The Malaysian Inland Revenue Board (“MIRB”) had released sample notification letters for both reporting and non-reporting entities. Please click on the following link to download a copy of the latest sample notification letter.
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
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.
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.