TCC (TAX COMPLIANCE CERTIFICATE)
New system transformations and initiatives by the Inland Revenue Board (IRB)
On 6 March 2023, the IRB issued a media release stating that four new system transformations for public access and three new initiatives for HASiL’s internal outreach were launched at its 27th HASiL Day Celebration Ceremony, to improve governance in its service delivery systems.
The four system transformations are as outlined below:
- e-TCC platform for taxpayers to obtain a tax compliance certificate (TCC[1]), which is a pre-condition for companies that wish to participate in government procurements. This platform allows the certificate to be printed if the taxpayer has a good compliance status in its submission of income tax return forms and income tax payments.
- e-PC system for the public to lodge reports on tax evasions committed by any individual or business taxpayer, instead of writing in by way of e-mails.
- TikTok HASiL to disseminate tax information and announcements
- Upgraded Malaysian Income Tax Reporting System (MITRS 2.0) to facilitate the online submission of taxation worksheets, financial statements and audit supporting documents.
The three initiatives are as outlined below:
- Research Clips to display summaries of research papers prepared by the Strategic and Research Department, through a visual approach
- Updated Risk Management Manual 2.0, taking into account the latest information based on the ISO 31000:2018 Risk Management – Principles and Guidelines as well as HASiL’s organizational structural changes that came into effect on 1 January 2023
- New version of the IRBM Taxpayer Roadmap, with an improved interactive display, to provide guidance to the public on income tax administration processes
Source : Budget 2022
What is Tax Compliance Certificate?
A TCC, otherwise known as a Tax Clearance Certificate is an official document issued by KRA, as proof of having filed and paid all your taxes.
KRA issues Tax Compliance Certificates because it is a requirement when, among others:
- Applying for a job. For jobs however, a TCC is required upon being offered the job.
- Applying for a government tender
- Applying for renewal of Work Permit
- Applying for clearing and forwarding agents license
- Seeking license to operate a Liquor Store
- One wants to confirm their compliance status
Tax Compliance Validity
Tax Compliance Certificates are valid for twelve months only.
Application for a TCC is done through iTax platform and the certificate is sent to applicants’ email address.
You can now check if your Tax Compliance Certificate is valid using the new KRA M-Service App.
Applying for a Compliance Certificate
Taxpayers seeking Tax Compliance Certificate must be compliant in:
- Filing of tax returns on or before the duedate for all applicable tax obligations.
- Payment of tax on or before the due date.
- Clearance of all outstanding tax debt.
