top of page
Search

Malaysia joins 113 countries to implement the Foreign Account Tax Compliance Act (FATCA)

  • Writer: CCS
    CCS
  • Sep 12, 2022
  • 3 min read

FATCA is one of the initiatives introduced by the United States to improve the practice of exchange of information on tax matters, especially among US persons.


To know more about FATCA:


For Malaysia, this bilateral initiative adds to the work it has been doing at international meetings led by the Organization for Economic Cooperation and Development (OECD) to improve tax transparency in line with best practices.


The signing of the Intergovernmental Agreement between the Government of Malaysia and the Government of the United States continues to mark the warm bilateral relationship between both countries.


The Agreement, signed on 21st July 2021 by the Secretary General of Treasury, YBhg Dato’ Asri bin Hamidon and the United States Ambassador to Malaysia, His Excellency Amb. Brian McFeeters took place virtually at Putrajaya and Kuala Lumpur in the presence of the Deputy Minister of Finance II, YB Tuan Mohd Shahar bin Abdullah.

Malaysia joins 113 countries through this signing to implement the Foreign Account Tax Compliance Act (FATCA).


The Agreement between the governments of Malaysia and the United States of America to improve international tax compliance and implement the Foreign Account Tax Compliance Act (called "the Agreement") was signed on July 21, 2021. It was gazetted on September 1, 2022, as required by section 132B of the Income Tax Act of 1967.

To meet its obligations under the Agreement, the Malaysian Government gazetted the following subsidiary laws on September 1, 2022:

  • P.U.(A) 279/2022

    • Income Tax (Automatic Exchange of Financial Account Information between the Government of Malaysia and the Government of the United States of America to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act) Rules 2022 (‘the Rules’); and


  • P.U.(A) 280/2022

    • Labuan Business Activity Tax (Automatic Exchange of Financial Account Information between the Government of Malaysia and the Government of the United States of America to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act) Regulations 2022 (‘the Regulations’).

The Rules and Regulations, among other things, say that a Reporting Malaysian "Financial Institution" must furnish the Director General of Inland Revenue of Malaysia a return with the information (if any) listed in Article 2 of the Agreement in the format that the Director General may determine:

  1. for the years 2014 - 2022, on or before June 30, 2023; and

  2. For each following calendar year, by June 30 of the year after the end of the year to which the return applies.

Financial Institution (FI)

any entity that

  1. accepts deposits in the ordinary course of a banking or similar business,

  2. holds financial assets for the account of others as a substantial portion of its business, or

  3. is engaged (or holding itself out as being engaged) primarily in the business of investing, reinvesting, or trading securities, partnership interests, commodities or similar financial instruments

Note that a Reporting Malaysian Financial Institution can be a Custodial Institution, a Depository Institution, an Investment Entity, or a Specified Insurance Company, as long as certain rules are followed (each as defined in the Agreement).



Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Any reliance on such information is therefore strictly at your own risk.

Keep in touch with us so that you can receive timely updates |

要获得即时更新，请与我们保持联系

1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍



Comments

CCS & CO PLT 202206000043 (LLP0033899-LCA) & AF 1538 was registered on 29th December 2022. With effect from that date, CCS & CO (AF 1538), a conventional partnership, was converted to a limited liability partnership.

©2019 - 2023 by CCS . All rights reserved.

bottom of page