How to deal with TAX when you are CLOSING DOWN a company?

Published: Fri, 09/02/22

TAX CLEARANCE LETTER APPLICATION:

COMPANIES UNDER COMPANIES ACT 2016

What is the exact procedure and documents needed to apply for a Tax Clearance Letter (TCL)? An Operational Guideline outlining the TCL application procedures for Companies, Limited Liability Partnerships (LLPs), and Labuan Entities (Labuan Companies and Labuan LLPs) was issued by the Malaysian Inland Revenue Board (IRB) on 30 June 2021. This guideline supersedes the Operational Guideline No. 2/2019.

The guideline is currently only available in Bahasa Malaysia. For your reference, you may refer to Permohonan Surat Penyelesaian Cukai bagi Syarikat, Perkongsian Liabiliti Terhad dan Entiti Labuan.

Dear bosses, do you know the procedure and the documents required to be submitted for issuing the TCL for your company? If you don’t, fret not, let us give a brief explanation here.

(A) Application Form

Depending on the company’s dissolution status, different application forms are required.

(B) Supporting Documents

Next, depending on the dissolution status as stated in (A) above, different documents are required for each of the status listed above under various sections of the Companies Act 2016.

These documents may include:

Notice of resolution
Statutory declaration
Declaration of solvency
Statement of affairs
Orders of release or dissolution
Notice of appointment and address of liquidator
Liquidator’s account of receipts and payments and statements of the position in the winding up
Notice by foreign company of cessation of business

(C) Submission of Income Tax Return Form (ITRF)

For the purpose of TCL application, taxpayer is required to submit ITRFs until the latest year of assessment:

1. Form C until the latest year of assessment; and

2. Form E until the latest remuneration year.

(D) Submission of Application

After the above documents are in order, you can submit them to the IRB branch that handles your company’s income tax file.

(E) Issuance of TCL (Tax Clearance Letter)

IRB has stipulated that the TCL will be issued within 14 working days from the date the application is received, along with complete documents and information. The company must also be audited up to the latest year of assessment, have no tax arrears, have paid the employee’s monthly tax deduction in full, and have no pending legal action for criminal or civil cases against itself.

(F) Documents Required After the Issuance TCL for the Closure of Tax File

For the purpose of closure of the income tax file after the TCL is issued, the applicant is required to submit some follow-up documents depending on their dissolution status.

Not sure which application form and supporting documents are relevant to you? What if the ITRF is not yet available? What are the follow-up documents to be submitted after the issuance of TCL?

Wish to know more? Sign up for TaxPOD, and decades of tax-saving knowledge will be available to you right at your fingertips. Visit https://taxpod.com.my/taxknowledge/ now so that you will not miss out on all this awesome tax-related content!

> Get your hands on the latest tax knowledge <

No.32 & 34, Lorong Thambi 2, Jalan Brunei
Kuala Lumpur Wilayah Persekutuan 55100
MALAYSIA

Unsubscribe | Change Subscriber Options