Malaysia has an extensive network of Double Taxation Agreement (DTA) with her treaty partners. The Certificate of Residence (COR) is issued to confirm the residence status of the taxpayer, enabling them to claim tax benefit under the DTA and to avoid double taxation on the same income. Hence, a COR is issued for these purposes and with Malaysia’s treaty partners only.
Determination of the Residence Status
Determination of residence status is provided under the Income Tax Act 1967 (ITA) and Labuan Business Activity Tax Act 1990 (LBATA) as follows:
Individual – Section 7 ITA
Companies – Section 8 ITA
Trust – Section 61(3) ITA
Labuan Entity – Section 3B LBATA
Application for COR
Application for COR can be made manually; or through e-Residence.
Application of COR Manually
Application for COR can be made to any IRBM branch except Investigation Branches, Revenue Service Centres and Satellite Offices. Please note that all manual applications need to be submitted in hardcopy format. Applications sent via email or fax will not be processed.
However, during the period of National Recovery Plan, applications which need urgent attention can be made by submitting the supporting documents via email to LHDNM. Please submit your applications and any inquiry on COR to : [email protected]
For all COR applications, the Form STM1 is to be completed. Where the application is for more than one certificate, the Form STM1A should also be completed.
The applicant needs to ensure that the Income Tax Return Form has been submitted.
For manual submission, applicant categories are as follows:-
Supporting Documents Required
– Original and photocopy of passport – List of movement in/out of Malaysia (STM1B)
Company and Body of Persons
– A copy of the Minutes of Board of Directors’ Meeting, or a letter signed by a director confirming the management and control of the company are exercised in Malaysia. – Particulars of company Director / Officer issued by Companies Commission of Malaysia (CCM)
Limited Liability Partnership (LLP)
– Limited Liability Partnership Agreement – A copy of the Minutes of LLP Meeting held in the required year of assessment
– Supporting documents are based on the partners category. For example if the partner is an individual, documents for individual applicants are required.
– A copy of the trust deed.
– Return on particulars and changes of directors and secretaries. – Annual Return. – A copy of the Minutes of Board Director’s Meeting and a letter signed by director confirming the management and control of the company are exercised in Malaysia. – Original and photocopy of passport (for non-resident directors) – Photocopy of NRIC (Malaysian Directors) – Copy of documents relating to compliance on Substantial requirements stipulated under Labuan Business Activity Tax (Requirements For Labuan Business Activity) Regulation 2018 P.U(A) 392 i) Copy of office rental tenancy agreement ii) Copy of payroll and other related documents on full time employee in Labuan
COR Application for Special Countries
COR applications for Saudi Arabia, Indonesia, France, Singapore and Switzerland need to be made by completing their special forms which can be downloaded from their respective official websites.
Labuan Branch and Non Resident Branch Tax Files
Taxpayers (individual or company) whose tax files are being handled by Labuan Branch or Non Resident Branch should send the application to the respective branches.
Duration for the Issuance of COR
The COR will be ready within 10 working days provided that all the necessary documents and information have been submitted. Applicant will be informed when the COR is ready for collection. Certificates that remain UNCOLLECTED after THREE (3) MONTHS from the date of submission will be CANCELLED. New application must be submitted for cancelled certificates.