The country-by-country (CbC) reporting rules and regulations have been implemented in Malaysia with an effective date of 1 January 2017.
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.
The FAQs (19 October 2018) address the following issues:
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
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 | firstname.lastname@example.org
Chang Mei Seen | +603 7721 7028 | email@example.com
Ivan Goh | +603 7721 7012 | firstname.lastname@example.org
© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. For more detail about our structure please visit https://home.kpmg/governance.
Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.