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EOT for the submission of YA 2023 tax returns under the LBATA

EY Malaysia Tax

Tax

10 Apr 2023
Subject Tax Alerts
Categories Tax
Jurisdictions Malaysia

Extension of time (EOT) for the submission of YA 2023 tax returns under the Labuan Business Activity Tax Act 1990 (LBATA)

The Inland Revenue Board (IRB)’s Labuan branch has issued a letter dated 15 March 2023 to the Association of Labuan Trust Companies (ALTC) to confirm that Labuan entities will be granted an EOT until 31 July 2023 to submit their tax returns under Sections 5 and 10 of the LBATA for YA 2023 (based on the financial year ended in 2022).


The IRB also stated that they are in the process of digitalizing the LBATA tax filing, with full digitalization expected by 2025. To facilitate the process, Labuan entities are required to submit a scanned copy of the relevant documents (as outlined below), together with the hard copies, to the IRB’s Labuan International Section from YA 2023 onwards.

Forms
  • Cover letter
  • LE1 form – Return of profits by a Labuan entity
  • LE3 form – Irrevocable election by a Labuan entity to be taxed under the Income Tax Act 1967, where relevant
  • LE4 form – Statutory declaration under Section 5 of LBATA (for Labuan trading activities)
  • LE5 form – Statutory declaration under Section 10 of LBATA (for Labuan non-trading activities)
  • Audited accounts or management accounts
  • Payment slips

Tax clearance application
  • CP7LE form – Application of tax clearance letter for a Labuan entity
  • Supporting documents as stipulated in Operational Guidelines No. 1/2022

LE file registration
  • CP600LE form – Income tax number registration form for a Labuan entity
  • Certificate of registration
  • Forms 7 (Certificate of incorporation of a Labuan company or Labuan protected cell company), 13 (Return of allotment of shares), 25 (Return on particulars and changes of directors and secretaries) and 27 (Annual return)
  • Memorandum and Articles of Association, Charter of the Labuan Foundation or Deed of Trust
  • Declaration by a Labuan trust company as trustee
  • Other relevant documents

Others

Other relevant documents such as changes of Labuan entity’s name or changes to Directors

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