Finance (No. 2) Act 2023 · Updated to 29 Dec 2023 · Chapter 13
207. Duty of Constituent Entity to keep documents for ascertaining tax payable
Feedback & supportSubject to this section, every Constituent Entity which is required to furnish a return as required under this Part for a Reporting Financial Year shall keep and retain in safe custody sufficient documents for a period of seven years from the end of that Reporting Financial Year for the purpose of administering and determining liability to
Constituent Entity
“Constituent Entity” means— (a) any Entity that is included in a Group; or (b) any Permanent Establishment of a Main Entity that is within paragraph (a) and which is treated as separate from the Main Entity and any other Permanent Establishment of that Main Entity, but does not include an Excluded Entity;
Domestic Top-up Tax or Multinational Top-up Tax.
Domestic Top-up Tax
“Domestic Top-up Tax” means tax as provided under section 159;
Where a Constituent Entity referred to in subsection (1)
has not furnished a return as required under this Part for a Reporting Financial Year, that Constituent Entity shall keep and retain the documents referred to in subsection (1)
Reporting Financial Year
“Reporting Financial Year” means the Financial Year that is the subject of the information return or the Top-up Tax return;
that relate to that Financial Year for a period of seven years after the end of the year in which the return is furnished.
Financial Year
“Financial Year” means an accounting period with respect to which the Ultimate Parent Entity of the Multinational Enterprise Group prepares its Consolidated Financial Statements and in the case of Consolidated Financial Statements as defined in paragraph (d) of the definition of “Consolidated Financial Statements”, Financial Year means the calendar year;
The Director General may specify by statutory order in respect of any class or description of business (or by notice under his hand in respect of the business of any particular
Constituent Entity) the form of records to be kept under subsection (1) and the manner in which they shall be kept and retained.
The Director General may waive all or any of the provisions of subsection (1) in respect of any particulars in an information return or Top-up Tax return furnished by a
information return
“information return” means a return in the prescribed form as provided for under section 201;
Constituent Entity.
Any Constituent Entity who is required by this section to keep documents and—
does so electronically shall retain them in an electronically readable form and shall keep the documents in such a manner as to enable the documents to be readily accessible and convertible into writing; or
has originally kept documents in a manual form and subsequently converts those documents into an electronic form shall retain those documents prior to the conversion in their original form.
All documents for the purpose of administering and determining liability to Domestic Top-up Tax and Multinational
Top-up Tax in Malaysia shall be kept and retained in Malaysia.
For the purposes of this section, “documents” means—
any documents as are necessary to verify the particulars in an information return or Top-up Tax return furnished by a Constituent Entity; or
any other records as may be specified by the
Director General under subsection (3).