Document background
A Tax Sharing and Funding Agreement is essential for corporate groups operating in Malaysia who wish to establish a formal arrangement for sharing tax liabilities and managing associated funding requirements. This document is particularly relevant for consolidated groups, holding companies with multiple subsidiaries, or joint venture arrangements where tax obligations need to be allocated among multiple entities. The agreement addresses key aspects such as tax calculation methodologies, funding commitments, payment mechanisms, and compliance requirements under Malaysian tax law. It is commonly used when groups need to ensure efficient tax management, clear allocation of responsibilities, and proper funding arrangements for tax obligations. The document must comply with Malaysian regulatory requirements, including those set by the Inland Revenue Board of Malaysia (LHDN) and relevant provisions of the Income Tax Act 1967.
