Updated Guidelines: Application for Tax Clearance Letter (TCL) for a Company, LLPs & Labuan Entity
Updated: Aug 30, 2022
Operational Guidelines No. 1/2022 dated May 24, 2022, in Bahasa Malaysia, titled "Permohonan Surat Penyelesaian Cukai Bagi Syarikat, Perkongsian Liabiliti Terhad Dan Entiti Labuan," were released on the IRB's website in June 2022.
125.2 Operational Guidelines No
. 1_2022 Tax Clearance Letter Application for Companies, LL
Download 1_2022 TAX CLEARANCE LETTER APPLICATION FOR COMPANIES, LL • 2.67MB
This version of the Operational Guidelines replaces the previous version, Operational Guidelines No. 3/2021, which was issued on June 30, 2021.
For the Operational Guidelines No. 3/2021, please read:
Tax Clearance Letter: Closing the Income Tax File - Companies under CA 2016
Tax Clearance Letter: Closing the Income Tax File – Limited Liability Partnerships (LLP)
125.1 HASiL Operational Guidelines No
.3_2021 – Tax Clearance Letter Application for Compan
Download 3_2021 – TAX CLEARANCE LETTER APPLICATION FOR COMPAN • 2.80MB
The updated Guidelines, similar to the previous Operational Guidelines (No. 3/2021):
describe the procedures for applying for tax clearance letters (TCL); and
provide guidance on the documents that must be submitted with the application for Companies, Limited Liability Partnerships (LLPs), and Labuan Entities.
The most significant changes are as follows:
According to the Revised Operational Guidelines, the Orders of Release or Dissolution under Section 491 of the Companies Act 2016 (CA):
Do not have to be submitted along with the application for the TCL for Companies that are being wound up by court order.
It is to be submitted to close a tax file number after receipt of the TCL.
For LLPs winding up by court order, the Dissolution Order now needs to be submitted with the application for the TCL.
The Client Charter of the Malaysian Inland Revenue Board requires that the SPC be issued no later than 14 working days after the date an application with all the necessary documents and information as detailed in Appendix 1 is submitted.
Application for the SPC
For a Company to apply for Tax Clearance Letter, the applicant must submit the application forms as follows to the branch that manages the company’s income tax file:
For LLP, to apply for Tax Clearance Letter, the applicant must submit the application form as follows to the branch that manages the LLP’s income tax file:
For a Labuan Entity, to apply for Tax Clearance Letter, the applicant must submit the application form as follows to the Labuan International Unit of the Labuan Branch:
Issuance of the SPC
The SPC will be issued, subject to the following conditions:
Complete application form and supporting documents have been submitted;
Tax Return Forms up to the latest assessment year / Form E up to the latest year of remuneration have been received;
Audit actions up to the latest assessment year have been completed;
No remaining tax arrears;
The employee's monthly tax deduction (PCB) has been paid in full; and
No legal action for criminal and/or civil cases
Closing the Income Tax File
For a Company, to close the income tax file after the SPC is issued, applicants are required to submit the following documents:-
Category of Dissolution | Members’ voluntary winding-up | Creditors’ voluntary winding-up | Winding-up by court order | Cessation of business (foreign company) | Strike Off / Dormant company |
Section 439(2)(a) Notice of resolution | ✅ | ✅ | | | |
Section 440(1) Statutory declaration of inability of company to continue business and that meeting of the company and its creditors have been summoned | | ✅ | | | |
Section 443 Declaration of solvency | ✅ | | | | |
Section 484 Statement of affairs | | | ✅ | | |
Section 513(1) Notice of appointment and address of liquidator (Voluntary winding up) | ✅ | | | | |
Section 513(1) Notice of appointment and address of liquidator (Creditors’ winding up) | | ✅ | | | |
Section 513(1) Notice of appointment and address of liquidator (Court winding up) | | | ✅ | | |
Section 514(1) Liquidator’s account of receipts and payments and statements | ✅ | ✅ | ✅ | | |
Section 578(1) Notice by foreign company of cessation of business | | | | ✅ | |
Non-availability of Return Form for the Current Assessment Year
The use of e-Filing is mandatory for Companies and LLPs.
However, if the e-Filing system for the current assessment year is not yet available, for Tax Clearance Letter Purposes only, Forms C/PT for the previous assessment year may be used by amending the assessment year. For example:
The use of e-Filing (e-E) is mandatory for employers comprising Companies, LLPs and Labuan Companies.
Form E for the previous year of remuneration can be used by amending the remuneration year if the e-Filing system for the current year of remuneration is not yet available. For example:
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