A Tax Identification Number (TIN) is a unique identifier assigned to businesses operating in Malaysia. It is used for a variety of purposes, including tax reporting, registering for licenses and permits, and opening a business bank account. In this article, we will explain the steps for obtaining a TIN in Malaysia and the importance of having a TIN for your business.

Obtaining a TIN

Step 1: Determine Business Structure

Requesting a TIN in Malaysia will require different supporting documentation depending on your business type. Typically, businesses will fall into one of the following categories:

• Private Limited Company/Public Limited Company
• Foreign (Non-Resident) Company
• Partnership
• Limited Liability Partnership

Step 2: Register Your Business

Once you have determined your business structure, the next step is to register your business with the Companies Commission of Malaysia (SSM). This process typically takes 1-2 days to complete and can be done online.

Step 3: Apply for TIN

After registering your business with the SSM, you will need to apply for a TIN. This can be done through the Inland Revenue Board (IRB) online portal e-Daftar or by visiting an IRB branch office. You will need to provide information including your business name, business structure, and the names and identification numbers of the business owners and directors.

Step 4: Submit Required Documents

When applying for a TIN, you will also need to provide a copy of your business’s notice of registration, business license, and other relevant documents as required by the IRB. Some examples of the additional required documentation include: a copy of your certificate of incorporation, a list of partners, or a copy of your business profile from an audit firm. Your business structure and residency status will determine which documents are necessary when registering.

Step 5: Wait for TIN

Once you have submitted your application, the IRB will process your request and issue you a TIN. This process typically takes 1-2 weeks.

Functions of a TIN

• Tax Reporting: The primary purpose of your TIN is to report taxes owed by the business to the IRB. Thess includes corporate income tax, sales tax, and employer taxes.
• Licenses and Permits: A TIN is required to apply for various licenses and permits, for example, food and beverage licenses, building permits, and environmental permits all require a TIN.
• Bank Accounts: A TIN is necessary to open a business bank account in Malaysia.
• Legal Compliance: Having a TIN demonstrates compliance with Malaysian tax laws and regulations.

Obtaining a TIN in Malaysia is a necessary step when starting a business. The process is relatively straightforward and can be completed online or by visiting an IRB branch office. A TIN is essential for tax reporting, obtaining licenses and permits, and opening a business bank account. Acquiring a TIN will be one of the first things you do as a business owner when incorporating in Malaysia to ensure that your business remains in compliance with Malaysian tax laws.