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Guidelines on the application for a tax clearance letter for a company, limited liability partnership and Labuan entities
The Inland Revenue Board (IRB) has issued on its website Operational Guidelines No. 2/2019 in Bahasa Malaysia, titled “Permohonan Surat Penyelesaian Cukai Bagi Syarikat, Perkongsian Liabiliti Terhad Dan Entiti Labuan”. The Guidelines are dated 12 November 2019 and replace GPHDN 3/2016, which was published on 31 July 2016 (see Tax Alert No. 17/2016).
Similar to the earlier Guidelines, the new Guidelines explain the procedures for the application of tax clearance letters and provide guidance on the documents which need to be submitted together with the application, for companies, limited liability partnerships (LLPs) and Labuan entities.
The key changes are as outlined below:
• The new Guidelines provide an updated list of documents which needs to be submitted together with the application for tax clearance letters. The documents required would depend on how the entity is being dissolved, and are outlined in Appendices A, B and C of the new Guidelines.
• The statements for the application of a tax clearance letter for a company, LLP, Labuan entity and defunct company are provided in Appendices 1A, 1B, 1C and 1D respectively of the new Guidelines (the earlier Guidelines only provided the statements to strike off a defunct company and to wind up an LLP).
• The new Guidelines also outline the documents which are to be submitted for the purpose of closure of a tax file number after receipt of the tax clearance letter, as outlined below (this was not stipulated in the earlier Guidelines).
Type of entity |
Category of dissolution |
Documents |
|---|---|---|
|
Company |
Members’ voluntary winding-up |
(a) Section 459(3): Return by liquidator relating to final meeting (b) Final accounts |
|
Creditors’ voluntary winding-up |
||
|
Winding-up by court order |
Dissolution order |
|
|
Cessation of business (foreign company) |
Corporation information |
|
|
Limited liability partnership |
Voluntary winding-up |
(a) Statutory declaration for the voluntary winding-up of an LLP (b) Form 17: Notice of Completion of Distribution |
|
Winding-up by court order |
Dissolution order |
|
|
Striking-off of the name of the LLP under Section 51 of the LLP Act 2012 |
Notice of striking-off of the LLP’s name under Section 51 of the LLP Act 2012 |
|
|
Labuan entity |
Members’ voluntary winding-up |
(a) Section 459(3): Return by liquidator relating to final meeting (b) Final accounts |
|
Creditors’ voluntary winding-up |
||
|
Winding-up by court orde |
||
|
Striking-off of the name of the Labuan entity |
Notice under Section 151(4) of the Labuan Companies Act 1990 from the Labuan Financial Services Authority (LFSA)Notice under Section 151(4) of the Labuan Companies Act 1990 from the Labuan Financial Services Authority (LFSA) |
|
|
Dissolution through a declaration |
Form 43: Declaration of dissolution of a Labuan company |
|
|
Dissolution of an LLP Labuan |
Form 43: Declaration of dissolution of a Labuan company |
|
|
Labuan entity |
Transfer from Labuan |
Notice under Section 133 of the Labuan Companies Act 1990 from the LFSA |
|
Cessation of business in Labuan (foreign company) |
Notice of cessation of business under Section 126 of the Labuan Companies Act 1990 from the LFSA |