Filing Programme for Documents by Labuan Through MITRS
The Inland Revenue Board of Malaysia ("IRBM") has released the Filing Programme for documents required under Section 22EB of the Labuan Business Activity Tax Act 1990 ("LBATA"). This development builds on recent reforms to the Labuan tax framework, particularly the implementation of the Self-Assessment System ("SAS") from the Year of Assessment ("YA") 2025, and reflects Malaysia’s continued focus on strengthening compliance, transparency, and digitalisation of tax reporting.
This programme also follows the earlier introduction of the Malaysian Income Tax Reporting System ("MITRS") for companies and LLPs, as well as the announcement of the SAS for Labuan entities, both of which we have covered in our previous articles. At that stage, it was noted that detailed guidelines would be released by the IRBM. The present Filing Programme represents the issuance of those guidelines in respect of Section 22EB compliance.
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Background and Legal Framework
Section 22EB of the LBATA requires taxpayers who have submitted a Return of Profits under Sections 5 or 10 of the LBATA to provide additional information and furnish specified documents.
This new programme takes effect from YA 2025 on a current year basis and ensures that all supporting documents relevant to the determination of taxable income are submitted in a standardised, digital format.
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Scope of Application and Access
Labuan entities filing under the LBATA must comply with these requirements. The MITRS platform will be available for use beginning 1 September 2025 and can be accessed as follows:
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Taxpayers: Through the MyTax Portal（https://mytax.hasil.gov.my/）
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Tax Agents: Through the Tax Agent e-Filing (TAeF) system, also accessible via MyTax Portal
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Submission must be made either by the director, director representative, or licensed tax agent. Importantly, taxpayers need to ensure that the Return of Profits must be filed before any documents are uploaded to MITRS.
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Specified Documents under Section 22EB
The following documents are prescribed for submission through MITRS:
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Audited financial statements / settlement account:
- Audited financial statement including directors’ report and detailed income statement as prepared in accordance with any written law for the relevant YA; or
- Settlement account (referring to Liquidator’s account of receipt & payments & a statement of position in the winding up) for companies in the process of dissolution or winding up.
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Copy of Zakat Payment Receipt: Where applicable, zakat has been paid under Section 8A of the LBATA, evidenced by receipts issued by the Labuan Islamic religious authority only.
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Computation of Incentives Claimed: Where applicable, a complete computation of any incentives claimed in the tax computation for the relevant YA.
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All documents must be submitted in Portable Document Format (PDF) format, not exceeding 20 megabytes (MB), and must be in either Malay or English. Any documents prepared in other languages must be accompanied by a certified translation into one of the applicable languages.
The Director General of Inland Revenue reserves the right to amend or expand the list of specified documents as necessary.
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Submission Deadlines and Amendments
Documents must be submitted within 30 days after the due date for submission of the Return of Profits. Should amendments be required, taxpayers are permitted to re-upload the revised documents through the MITRS platform. In such cases, all relevant documents must be re-submitted, even if not subject to amendment. The date of submission will be updated based on the latest upload date.
Late submission of amended or original documents will be deemed non-compliance with Section 22EB.
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Penalties for Non-Compliance
Failure to comply with Section 22EB is an offence under paragraph 23(1)(c) of the LBATA. Upon conviction, taxpayers may be liable to:
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A fine of not less than RM20,000 and not more than RM1,000,000; or
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Imprisonment for a term not exceeding six months; or
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Both of the above.
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This underscores the importance of timely and accurate submission of the specified documents.
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Conclusion
The new Filing Programme under Section 22EB of the LBATA marks another significant step in aligning Labuan’s tax reporting with Malaysia’s broader digital tax administration reforms. Together with the earlier rollout of MITRS for companies and LLPs, and the shift to the SAS for Labuan entities, this measure demonstrates the Government’s comprehensive approach to modernising tax compliance.
Labuan entities are urged to familiarise themselves with these requirements well ahead of the effective date and to seek professional advice where necessary to mitigate compliance risks.
For further information, please visit the official website of the Inland Revenue Board of Malaysia at
https://www.hasil.gov.my/en
KAIZEN Group, together with its associate firms in Malaysia, can help the clients to perform these compliances formalities so as to maintain the Malaysia company in good standing. Please call and talk to our professional accountants in Kaizen for further clarification.
KNOWLEDGE
