Public Ruling No. 4/2022 : Recovery from Person Leaving Malaysia

Public Ruling No. 4/2022: Recovery from Person Leaving Malaysia

The objective of Public Ruling No. 4/2022 – Recovery from Person Leaving Malaysia is to explain the circumstances and procedures for recovering taxes and debts due from taxpayers who will be leaving Malaysia.

Director General (DG) of Inland Revenue Board Malaysia (IRBM) may issue a travel restriction certificate to a Commissioner of Police or a Director of Immigration requesting to prevent taxpayers from leaving Malaysia unless all his taxes and debts are paid.

Such certificate that invokes a stoppage order contains details of the tax, sums, and debts so payable. The action will be taken by a Commissioner of Police or a Director of Immigration upon receiving a such certificate, including the use of such reasonable force and the seizure, removal, or retention of any certificate of identity and any passport, exit permit, or other travel document relating to that taxpayer in order to enforce the request of DG. The DG does not have to prove that a taxpayer intends to leave the country permanently.

Effective from 1 January 2021, the DG can issue a such certificate to the Malaysian Immigration Department by using an electronic medium.

Allowing Taxpayers to Leave the Country

The taxpayers are allowed to leave the country if:-

The taxpayer (excluding foreign nationals) who is unable to paid on his tax liability and debts fully will be allowed to leave the country with certain conditions as the following:

A letter for temporary release will be issued and the period a taxpayer is allowed to travel out of the country will be stated in the letter.

Information on the revocation of the stoppage order and temporary release will be made available on the Immigration Department of Malaysia’s website.

Tax consulting is the core service of ANC Group. Our tax professionals provide clients with comprehensive tax support and guidance. We offer tax consulting and compliance services for expatriates, entrepreneurs, and listed and non-listed companies.

Our tax consulting services include business tax, transaction tax, personal tax, and corporate income tax. We don’t just guide you in interpreting and applying complicated taxation rules, but to explore new opportunities and business trends.

We keep you abreast with Malaysia tax updates and any changes in the local regulations.

We work closely with industry specialists, authorities, and associated professionals within ANC Group to provide the best-in-class integrated tax planning solutions. ANC specialists coordinate the accounting and taxation services to bring your business to success.