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Malaysia: FAQs on country-by-country reporting, sample notification letters

Malaysia: FAQs on CbC reporting, notification letters

The country-by-country (CbC) reporting rules and regulations have been implemented in Malaysia with an effective date of 1 January 2017.

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The Malaysian Inland Revenue Board (MIRB) has a dedicated website—CbC Portal—for CbC reporting information. Among recent updates include a list of “frequently asked questions” (FAQs) on CbC reporting and sample notification letters.

FAQs

The FAQs (19 October 2018) address the following issues:

  • Threshold—how is the threshold of RM 3 billion to be applied?
  • Obligation to file—if the multinational entity (MNE) is filing the CbC report in a foreign jurisdiction, does the Malaysian entity need to file the CbC report locally?
  • Notification—how to determine the notification deadline and how many notification letters are to be submitted for an MNE group? 
  • Reporting currency
  • Guidance on preparing the CbC report

Notification on CbC reporting

The MIRB had released sample notification letters (Amendment 1/2018) for both reporting and non-reporting entities. The amendments were made to standardize and streamline certain language or terminology. For instance, there are instructions that the notification letter is to be made on the MNE’s official letterhead and the submission of the notification letter (original copy) is to 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

The reporting entity is to 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. The notification letter must include details of all Malaysian and foreign non-reporting constituent entities. Read a sample notification letter [PDF 281 KB] to be provided by a reporting entity.

For a non-reporting entity, the Director General must be notified, in writing, of the identity and tax residence of the reporting entity, on or before the last day of the reporting financial year. Read a sample notification letter [PDF 202 KB] to be provided by a non-reporting entity.

 

For more information, contact a tax professional with KPMG’s Global Transfer Pricing Services group in Malaysia:

Bob Kee | +603 7721 7029 | bkee@kpmg.com.my

Chang Mei Seen | +603 7721 7028 | meiseenchang@kpmg.com.my

Ivan Goh | +603 7721 7012 | ivangoh@kpmg.com.my

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