Malaysia - Obtain Certificate of Residence (COR)

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Procedure

A COR is issued to confirm the residence status of the taxpayer for the purpose of taxation.Malaysia has a network of Double Taxation Agreement (DTA) with her treaty partners.The COR enable the Malaysian tax residence to claim the tax benefit under the DTA and to avoid being tax twice on the same income.

How to apply:

1. Application for COR can be made to any IRBM branch. However, for taxpayers of the Large Taxpayer Branch (LTB) and Duta Branch (DB), the application should be submitted to the Department of International Taxation (DIT)
   
2. Following link provides the nearest office locations that can be approached : IRBM Office Location
3. Download, the Form STM1 and fill it correctly. Where application is for more than one certificate, the Form  SIM1A  should be filled
4. Attach all required documents with the application form and submit them to the officials
5. Applicant will be informed when the COR is ready for collection.
   

 

NB Certificates that remain UNCOLLECTED after THREE (3) MONTHS from the date of submission will be CANCELLED. New application must be submitted for cancelled certificates.

APPLY ONLINE:

1. To apply on-line, please use the following link:Certificate of Residence.  
2. Select AKSES PEMOHON option.
   
3. Fill in the required information correctly and submit.
   
4. The COR will be mailed to your address in 7 -14 days.
   

NB Following link has more information which can help : More Information

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Required Documents

Companies:

For application of COR for year of assessment where the Return Form is not yet due, the supporting documents that should be submitted are:

• A copy of the Minutes of Board of Directors' Meeting that was held in the year being applied or
• A confirmation letter signed by a director,stating that the management and control of the company are exercised in Malaysia for the year of assessment applied and
• A copy of Form 49 from Companies Commission of Malaysia (CCM)

Individual:

• Passport, original and photocopies; and
  
• List of movement in/out Malaysia for the year of assessment applied.
  

Partnership:

• The residence status of an individual, who is a partner of a partnership, is determined pursuant to Section 7, Income Tax Act, 1967. The residence status of a company, being a partner of a partnership, will be determined pursuant to Section 8, Income Tax Act 1967. The supporting documents required are as stated in paragraphs (i) and (ii) above.

Trust:

• A copy of the trust deed (for newly registered file)

Checklist:

• All information required and necessary documents as in the Checklist are to be enclosed.

Office Locations & Contacts

Following link provides the nearest office locations that can be approached : IRBM Office Location

Inland Revenue board of Malaysia:
Labuan branch
1 st flora vas podium
Kompleks ujana kewangan
Jaan merdeka
87000w.p Labuan

Headquarters of Inland Revenue board of Malaysia:
Department of international taxation
Menara hasil level 12
Cyber 8
63000 cyberjaya
Selangor Malaysia
Tel:03-83138888(Ext.21231/21231/2132)
Fax: 03-83137848/03-83137849

Eligibility

• Individual taxpayers;
• Partners (individual) of a partnership;
• Taxpayers (individual or company)

Fees

There is no fee charged for the COR.

Validity

The validity period of a COR is 12 months from the endorsement date. The application of COR should be made when the current COR has expired, or when there is request made by the client from the treaty country.

Documents to Use

STM1
STM1A

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

10 Working Days

Related Videos

Videos explaining the procedure or to fill the applications. 
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Please remove the "&" inside the tags during implementation.
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sevenload, viddler, vimeo, youku, youtube
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e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M". 
	

Instructions

Please provide instructions on obtaining the certificate/documents.
e.g. The state office holds birth records since January 1908.

Required Information

• Name of taxpayer
• Principal business activity
• Business address
• Personal address

Need for the Document

A COR is issued to confirm the residence status of the taxpayer for the purpose of taxation. Malaysia has a network of Double Taxation Agreement (DTA) with her treaty partners. The COR enable the Malaysian tax residence to claim the tax benefit under the DTA and to avoid being tax twice on the same income.

Information which might help

• When you earn foreign income from a treaty country, you may be subject to tax in that foreign country. However, you may wish to claim the DTA benefits that entitle a Malaysia tax resident to enjoy a reduced tax rate or a tax exemption in that foreign country.
  

• To enjoy this benefit, you need to submit the Certificate of Residency (COR) to the foreign tax authority to prove that you are a Malaysia tax resident.
  

• Please refer Determination of the Residence Status  to determine whether you are a Malaysia tax resident or not.

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

OECD
Lembaga Hasil Dalam Negeri Malaysia
e-Residence.

Others

• The Avoidance of DTA is an agreement signed between Malaysia and another country that serves to relieve double taxation of income earned in one country by a resident of the other country. A treaty country refers to a country that has signed a DTA with Malaysia.
• The DTA states the taxing rights between Malaysia and her treaty partner on different types of income arising from cross-border economic activities between the two countries. It also provides for tax reduction or exemption on certain types of income.
• Only the tax residents of Malaysia and the respective treaty country can enjoy the benefits of a DTA. Malaysia has concluded about 69 effective  DTA . For information on the varying rates of withholding tax on interest, royalty and technical fees,see DTA Agreement Rates.