The Tax Compliance Certificate (TCC), known locally as Sijil Pematuhan Cukai (SPC), issued by the Inland Revenue Board of Malaysia (LHDN), has emerged as a pivotal document for businesses operating in Malaysia. It serves as official confirmation that a taxpayer has diligently fulfilled their income tax obligations, encompassing the timely submission of tax returns and the payment of any outstanding taxes.
Example of LHDN-issued Tax Compliance Certificate
This certificate is a testament to a taxpayer’s good standing with LHDN, signifying that income tax return forms (BNCP) have been submitted annually within the stipulated period, there are no outstanding tax arrears, and any instalment payment schedules for taxes are being meticulously adhered to. LHDN introduced the TCC as part of its strategic initiative to enhance governance in service delivery and to foster a culture of responsible tax compliance among businesses.
Key Takeaways:
- From February 2024 onwards, a valid Tax Compliance Certificate is a non-negotiable requirement for all businesses bidding for government contracts.
- Non-compliant status (due to tax arrears or late filings) can disqualify businesses, while adherence to instalment plans can help regain compliance.
- Holding a TCC enhances reputation with clients, lenders, and partners, and may soon influence financing and contract evaluations beyond the public sector.
- Maintaining a TCC fosters internal financial discipline, reduces audit risk, and contributes to national development through transparent tax contributions.
TCC’s Profound Impact on Business Owners
The TCC’s influence on Malaysian business owners is significant and continuously expanding, particularly in several key areas.
For businesses eyeing government procurement, the TCC has become an indispensable prerequisite. Since 2023, and made mandatory for the procurement of supplies and services from February 2024, it is now a non-negotiable requirement for taxpayers or bidders when submitting applications for government tenders. This applies universally to individual business owners (sole proprietorships), companies, limited liability partnerships, and cooperatives.
This measure ensures that only tax-compliant businesses secure public contracts, fostering a level playing field and curbing tax evasion. A business with outstanding tax arrears will find its TCC status marked as “non-compliant,” potentially disqualifying it from these lucrative opportunities. However, the LHDN offers instalment payment arrangements as an alternative, the adherence to which can swiftly convert a “non-compliant” status to “compliant.”
Beyond government contracts, a TCC could increasingly influence access to financing and broader business opportunities. While currently focused on government procurement, there’s a growing possibility that financial institutions may begin to consider a company’s tax compliance status, as evidenced by a TCC, when evaluating loan applications or assessing creditworthiness. Similarly, private sector entities might progressively incorporate TCC requirements into their due diligence processes before entering into substantial contracts or partnerships, especially given the government’s strong push for greater tax transparency.
Possessing a TCC significantly enhances a business’s reputation and credibility. It signals to all stakeholders—clients, suppliers, investors, and the general public—that the business operates ethically and responsibly, fulfilling its legal and financial obligations. This transparency can cultivate trust and bolster overall credibility within the market.
Furthermore, possessing a TCC can significantly enhance a business’s reputation and bolster its credibility within the marketplace. It serves as a clear signal to all stakeholders—including prospective clients, suppliers, investors, and the broader public—that the business operates with integrity, adheres to ethical standards, and diligently fulfils its legal and financial obligations. This transparent approach fosters trust and can be a powerful differentiator in a competitive environment.
The inherent discipline required to obtain and maintain a TCC also cultivates improved internal financial management. It encourages businesses to meticulously maintain accurate accounting records, ensure the precise and timely submission of tax returns, and proactively manage their tax payments. Such proactive financial discipline can substantially mitigate the risk of incurring penalties for non-compliance, allowing business owners to dedicate more resources and focus on core operations.
READ MORE: Important Tax Deadlines & Penalties for Non-Compliance in 2025
Ultimately, maintaining a TCC-verified state of tax compliance serves as a robust strategy for risk mitigation, effectively reducing the likelihood of LHDN audits, burdensome penalties, and potentially damaging legal actions, all of which can inflict significant financial strain and reputational harm.
Finally, by steadfastly adhering to tax compliance, as evidenced by the TCC, businesses play a direct and vital role in contributing to national development. The robust revenue collection facilitated by such compliance empowers the government to fund essential public services, embark on critical infrastructure development projects, and implement various national development programs that benefit all citizens. Thus, businesses that diligently obtain and maintain their TCC are, in essence, actively participating in and underpinning the broader economic well-being and progress of Malaysia.
How to Get a Tax Compliance Certificate (TCC) in Malaysia
A Tax Compliance Certificate (TCC) is more than just a formality—it’s a recognised proof that your business is in good standing with the Inland Revenue Board of Malaysia (LHDN). Whether you’re bidding for government contracts or demonstrating your tax track record to partners, having a valid TCC strengthens your business credibility.
Step-by-Step Guide to Getting a TCC
1. Register for a Tax Identification Number (TIN)
You can’t apply for a TCC without first obtaining a Tax Identification Number (TIN).
If your business doesn’t have one yet:
- Visit the MyTax Portal
- Use the e-Daftar application to register your business and generate a TIN
New taxpayers must also attach their business registration documents when applying.
READ MORE: How To Get Your TIN Online
2. Access the e-TCC Platform via MyTax
Once your TIN is active, head over to the e-TCC system—also known as e-SPC—via the MyTax portal.
Through this platform, you can:
- Check your compliance status
- View and download your TCC (if you meet the criteria)
3. Meet the TCC Compliance Requirements
Before LHDN issues your TCC, they will verify the following:
- All income tax return forms (BNCP) are submitted on time
- There are no outstanding tax arrears
- You are adhering to tax instalment plans, if any
If everything checks out, your TCC will be made available in the portal for download.
4. Alternate Method for New or Special Case Applicants
If you’re a new taxpayer or bidder who urgently needs a TCC but have yet to complete your TIN registration:
- Register for a TIN via e-Daftar
- Then, email your TCC request (with supporting documents) to
📧 tcc@hasil.gov.my
This manual submission is reviewed by the IRB TCC Implementation Secretariat.
Validity and Monitoring
While LHDN does not clearly define a fixed validity period across all sectors, a 12-month validity is commonly observed in practice. It’s good business hygiene to check your TCC status annually and renew it as needed, especially if you regularly engage with public sector tenders or government-linked partners.
TCC – A Vital Credential for Malaysian Businesses
The Malaysia Income Tax Compliance Certificate transcends its role as a mere administrative document; it has evolved into a critical instrument for fostering tax discipline and transparency. Its implications for business owners are direct and increasingly profound, particularly for those aspiring to engage with governmental entities or to unequivocally demonstrate their unwavering commitment to good corporate citizenship.
Need help navigating the TCC process or ensuring your tax affairs are in order? Get in touch with Bispoint’s tax team today for expert guidance and support tailored to your business.
