FREQUENTLY ASKED QUESTIONS (FAQ) B. Melayu
1. (Q) - What are the system requirements of e-Residence?
(A) -Pentium III and above
Internet Online
Internet Explorer 5.0 and above / Mozilla Firefox 5/9 Opera / Safari
2. (Q) - What is a Certificate of Residence (COR)?
(A) - A Certificate of Residence (COR) is an official document issued by IRBM to confirm that the taxpayer is resident in Malaysia for tax purposes.
3. (Q) - Why is COR issued?
(A) - The COR is issued to enable the taxpayer that is tax residence in Malaysia to get the benefit of the Double Taxation Agreement (DTA) that the Government of Malaysia has signed with her treaty partners, and to avoid being tax twice on the same income by the treaty countries.
4. (Q) - If Malaysia has no DTA with the other country, should the Malaysian taxpayer apply for the COR?
(A) - The Malaysian taxpayer need not apply for the COR since no treaty benefit will be given due to the absence of DTA between Malaysia and the other country.
5. (Q) - How to apply for the COR?
(A) - COR can be applied by filling the Form STM1 and submit manually to the respective branches in IRBM or through the on-line system, the e-Residence
6. (Q) - How long will it take for the COR be ready for collection?
(A) - A COR will be ready within 3 working days provided that all supporting document necessary have been submitted. COR will be issued according to first-come-first-serve basis.
7. (Q) - Is there any payment required to apply for a COR?
(A) - There is no fee charged for the COR.
8. (Q) - Should the application for COR be made every year?
(A) - The validity period of a COR is 12 months from the endorsement date. The application of COR should be made when the current COR has expired, or when there is request made by the client from the treaty country.
9. (Q) - With the COR, would I be entitle to choose which country I want to pay tax to?
(A) - The COR will entitle you to get the benefit of the DTA. The DTA is the one that will determine which country you should pay tax to.
10. (Q) - I have received a COR from IRBM for Treaty Country A. My client requested a photocopy of the COR, therefore, the original copy have been kept in the fail. Recently, a client form Treaty Country B requested for a COR. Can I give the COR that is meant for Treaty Country A to Treaty Country B?
(A) - Normally, the tax Competent Authority of the treaty country will request for the original copy of the COR. If not, they will eventually asked for it when they audit the company in the treaty country.

It is advisable to make a new application for COR for the later client to avoid the benefit of DTA to be withdrawn and penalty being imposed.
11. (Q) - My company has been tax for the profit made when trading with the Indian company in India, but my company has no permanent establishment (PE) in India. How can I claim back the tax being paid in India?
(A) - Pursuant to Article 5 and Article 7 of the DTA between Malaysia-India, India may tax the business profit only if your company has a PE in India. Since your company has no PE in India, India has no right to tax that income.

You can claim for tax refund for the tax paid in India by sending an appeal letter together with the COR to the Indian tax authority.
12. (Q) - My company has paid a withholding tax (WHT) at the rate of 20% in Indonesia for interest income received from a company in Indonesia. I was informed that my company can claim the excess of 10% WHT from the Indonesian tax Competent Authority if I can proof that my company is tax resident in Malaysia. What should my company do to claim back the excess payment of the WHT?
(A) - You can make an application for COR to the IRBM, and attached the COR to the appeal letter to the Indonesian tax competent authority for refund of the excess 10% WHT.
13. (Q) - I work from home in Malaysia with an IT company in France. My work is sent to my employer in France via internet. Every month my salary, allowance and commission are banked-in to my account by my employer. The tax authority in France want to tax the income I received from my employer in France. Should I be paying tax in France?
(A) - Since you are tax residence in Malaysia and are exercising the employment in Malaysia, Malaysia has the right to tax the income received from the employer in France. You need to declare the income received from France to the IRBM every year.