Form 5472 for Malaysia Residents with a US LLC

If you live in Malaysia and own a US single-member LLC, you must file Form 5472 with a pro forma Form 1120 for every year the LLC had a reportable transaction with you. No comprehensive US–Malaysia income tax treaty is in force, and that removes nothing from the filing. The FTIN box takes your LHDN tax identification number if you have one. If you don't, you enter "None" and a reference ID.

Malaysia has a large and growing group of US LLC owners. Kuala Lumpur and Penang are home to agency owners, SaaS founders, Amazon sellers and freelance developers who set up Wyoming, Delaware or New Mexico LLCs so they can use US payment processors and US bank accounts. Since MDEC launched the DE Rantau Nomad Pass, remote workers from abroad have joined them, and many of those arrive with an LLC already formed.

Two parts of the Malaysian position change how the filing works compared with a UK or Indian owner. The first is the treaty position, which is more specific than "there is no treaty". The second is the identification number, because a Malaysian citizen and a nomad on a pass may hold quite different numbers. Neither one removes the obligation.

If you would rather have the filing done than read about it, we prepare and fax the complete package from $149.

Do Malaysia residents have to file Form 5472?

Yes, on the same terms as every other non-US owner. Three conditions apply:

The LLC is a US disregarded entity, meaning a single-member LLC that has not elected to be taxed as a corporation.
Its sole member is a non-US person. A Malaysian citizen, or a foreign national living in Malaysia, who is not a US citizen, green card holder or US tax resident meets this condition.
The LLC had at least one reportable transaction during the tax year with its owner or another foreign related party.

Treasury Regulation § 1.6038A-1 sets the rule. For tax years beginning on or after 1 January 2017, a foreign-owned US disregarded entity is treated as a corporation separate from its owner solely for the § 6038A reporting rules. Where you live, and whether a treaty exists, has no bearing on that regulation.

A reportable transaction is money, property or services moving between you and your own LLC. That covers contributions in, distributions out, loans in either direction, and payments for goods or services between you and the LLC. Customer revenue is not reportable. A Stripe or Wise payout from a client does not go on the form. A transfer from that balance to your personal ringgit account at Maybank or CIMB does.

A typical year for a Malaysia-based owner might include:

Ringgit you converted and sent to fund the LLC's US bank account: reportable contribution
Every transfer from the LLC to your personal Malaysian account: reportable distribution
Cash you lent the LLC to cover software or ad spend before revenue arrived: reportable loan
Payments the LLC made to your own Malaysian Sdn Bhd for services: reportable, and a second related party

The IRS instructions state that a $25,000 penalty may apply for failing to file when due and in the prescribed manner, for filing a substantially incomplete Form 5472, or for failing to keep the required records. A substantially incomplete form counts as a failure to file. The penalty is not automatic for every small error, but it is the risk the filing exists to manage. Our reportable transactions examples walk through the edge cases.

Does the US–Malaysia tax treaty change anything?

There is no comprehensive US–Malaysia income tax treaty in force. Malaysia does not appear on the IRS's United States income tax treaties A-to-Z list. The M entries run Malta, Mexico, Moldova, Morocco. On the Malaysian side, LHDN's list of comprehensive double taxation agreements does not include the United States either.

There is one detail most competing content leaves out. LHDN's page of limited double taxation agreements does list the United States of America, under reference P.U. (A) 242/1989. So the accurate statement is not "the two countries have never signed a tax agreement". It is that no comprehensive income tax treaty is in force, and only a limited agreement is on LHDN's list. LHDN's page does not describe what that limited agreement covers, so we don't describe its scope here. If you think it might touch your income, read the agreement itself or ask an adviser. We also found no record of a comprehensive treaty that was signed but never brought into force, and we make no claim either way about the history of negotiations.

None of this reaches Form 5472. A tax treaty divides taxing rights over income. Form 5472 is an information return under IRC § 6038A. No treaty exempts anyone from it, so the lack of one takes nothing away.

What the absence of a treaty does and does not change

Area	Without a comprehensive treaty in force	Effect
Obligation to file Form 5472	Same three conditions as any other foreign owner	Does not change
Pro forma Form 1120 with "Foreign-owned U.S. DE" across the top	Required exactly as for a UK or German owner	Does not change
How it is submitted	Fax to 855-887-7737 or mail to the Ogden PIN Unit; no e-filing	Does not change
$25,000 penalty exposure	Same penalty rules under § 6038A	Does not change
FTIN and reference ID fields	Filled from your identification numbers, not your treaty position	Does not change
Treaty relief on US tax, such as reduced withholding or permanent establishment protection	Not available to you as a Malaysia resident	Changes: removed
Option to make a treaty-based return position	No comprehensive treaty to claim under	Changes: removed
Whether your LLC has US-taxable business income	Decided under US domestic law alone, with no treaty backstop	Changes: no treaty fallback

The last row matters more than it looks. Most businesses run from Malaysia have no US office, no US staff and no US inventory, and generally have no US trade or business. But the analysis now rests only on those facts, without a treaty to fall back on. US-held inventory, such as Amazon FBA stock in US warehouses, is the fact pattern that needs a professional opinion. Our UAE and Dubai guide covers another no-treaty country in the same way.

What goes in the FTIN box when you are in Malaysia on a nomad pass?

Enter the tax identification number (TIN) that Lembaga Hasil Dalam Negeri (LHDN, also branded HASiL) issued you, if you have one. If you don't, enter "None" and use a self-assigned reference ID.

LHDN's registration page says that Malaysian citizens and permanent residents aged 18 and over are registered for a TIN automatically, using data from the National Registration Department. Since 1 January 2024, anyone else applies online through the e-Daftar service on the MyTax portal. That route is open to non-citizens, and LHDN lists a valid passport or a copy of a visit pass among the documents it accepts.

In practice, Malaysia-based owners fall into three groups:

Your situation	Part II, line 4b(3) FTIN	Line 4b(2) reference ID
Malaysian citizen or PR, automatically registered	Your LHDN TIN, as shown in MyTax	Optional if you enter an FTIN
Foreign resident who has registered through e-Daftar	The TIN LHDN issued you	Optional if you enter an FTIN
DE Rantau holder or other foreigner with no Malaysian TIN	"None" or "N/A", never blank	Required: a self-assigned ID, the same one every year

Two mistakes come up again and again. The first is entering a passport or visit-pass number as an FTIN. An identity document number is not a tax number. The second is using your Sdn Bhd's tax number, which belongs to the company, not to you. You also don't need a US ITIN just to fill this section. The reference ID mechanism exists for owners who have no US number. See our FTIN and reference ID guide for how to construct one.

For your address in Part II, use your actual residential address in Malaysia, not the registered agent address of the US LLC. The LLC's address and your address are separate fields.

Does Malaysian tax affect the US filing?

No. Malaysian tax is separate from the US information return, and nothing you file with LHDN replaces or satisfies Form 5472. We describe the Malaysian side only in outline, as context.

Residency is a day-count test. LHDN's tax residence status page sets out section 7 of the Income Tax Act 1967. Under paragraph 7(1)(a), you are resident for a basis year if you are in Malaysia for periods adding up to 182 days or more in that year. Paragraphs 7(1)(b) to (d) can make you resident with fewer days: through a period linked to a 182-day consecutive stretch in an adjacent year, through a 90-day rule combined with presence in earlier years, or through residence in the surrounding years. Your pass does not decide your tax residence. The day tests do.

The scope of Malaysian income tax. LHDN's introduction to individual income tax says tax is charged on income accruing in or derived from Malaysia, or received in Malaysia from outside Malaysia. The same page states that foreign-sourced income received in Malaysia is exempt, but it gives no conditions or dates there. We have not verified how that exemption applies to money drawn from a US LLC, or whether it applies at all. Treat it as unverified for your situation and confirm it with LHDN or a Malaysian tax adviser before relying on it.

The DE Rantau Nomad Pass. The pass is run by the Malaysia Digital Economy Corporation (MDEC) under the Ministry of Digital. The Ministry's June 2024 announcement widened eligibility beyond IT and digital roles to professions including founders and chief executives. It set a minimum income of USD 60,000 a year, or USD 5,000 a month, for non-IT and non-digital applicants, and it describes a two-year period under the pass. We have not verified the income threshold for IT and digital applicants or any tax treatment tied to the pass. Check MDEC's own DE Rantau pages for the current criteria.

What you owe in Malaysia is a question for LHDN or a Malaysian tax adviser. We do not advise on it.

How does a Malaysia-based owner actually file?

Form 5472 for a foreign-owned US disregarded entity cannot be e-filed. It goes by fax or by post.

Prepare the pro forma Form 1120. Write "Foreign-owned U.S. DE" across the top of page 1. Only the LLC's name and address and items B and E are required.
Prepare Form 5472. Part I covers the LLC. Part II covers you, with your Malaysian address, your LHDN TIN or "None", and a reference ID where needed. Part III covers the related party, and Parts IV and V cover the transactions, with a statement itemising contributions and distributions.
Convert ringgit to US dollars at a reasonable rate for each transaction date, apply it consistently, and state your basis in the supporting statement.
Sign and submit. Fax to 855-887-7737, or mail to Internal Revenue Service, 1973 Rulon White Blvd, M/S 6112, Attn: PIN Unit, Ogden, UT 84201.
Keep the fax transmission receipt. It is evidence that you sent the filing, not IRS acceptance of the return, and the IRS generally sends no acknowledgement.

The regular due date for a calendar-year LLC is generally 15 April. Form 7004 extends it under the special instructions for foreign-owned disregarded entities. Dates and edge cases are in our Form 5472 deadline guide.

Getting it filed from Malaysia

Most Malaysia-specific errors are small ones that make a return substantially incomplete. Examples include a passport number in the FTIN box, a blank FTIN field where "None" was required, a company tax number entered as a personal one, or a Sdn Bhd that should have been reported as a second related party.

We prepare the complete package: Form 5472, the pro forma Form 1120 and the supporting statement. A qualified tax accountant reviews it, then we fax it to the IRS Ogden PIN Unit and send you the timestamped transmission receipt.

$149 Standard, ready in 5–7 business days. $199 Express, within 3 business days. +$99 per additional past tax year. IRS fax delivery is included, so you never have to send an international fax from Kuala Lumpur.

We are not a CPA firm and do not give tax advice, and we do not advise on Malaysian tax. We prepare and submit the US information return.

Start your filing. It takes about 15 minutes.

Frequently asked questions

Is there a tax treaty between the US and Malaysia?

No comprehensive income tax treaty is in force. Malaysia is absent from the IRS treaty list. LHDN lists the United States only under limited agreements (P.U. (A) 242/1989), not comprehensive ones. None of this affects Form 5472.

Does the lack of a treaty mean I can skip Form 5472?

No. Form 5472 is an information return under IRC § 6038A, not a treaty matter. If your single-member LLC had a reportable transaction with you, the filing is due whether or not a treaty exists.

I am on the DE Rantau Nomad Pass. Do I still file?

Yes. The pass governs your stay in Malaysia. It has no effect on your US LLC's reporting. The obligation follows the LLC and your status as a non-US person, not your visa.

What FTIN do I use if I have no Malaysian TIN?

Enter "None" or "N/A" in the FTIN block. Don't leave it blank. Then enter a self-assigned reference ID and use the same one every year you file. Never substitute a passport or visit-pass number.

Does spending 182 days in Malaysia affect my US filing?

No. The 182-day rule in section 7 of Malaysia's Income Tax Act 1967 decides Malaysian tax residence only. It does not create, remove or change the US Form 5472 obligation.

My LLC pays my Malaysian Sdn Bhd. Is that reportable?

Yes. Your Sdn Bhd is a foreign related party, so payments between it and the LLC are reportable, and they need a separate Form 5472 for that party.

The missing treaty changes what tax relief you can claim, not whether you file. If money moved between you and your US LLC this year, Form 5472 is due.

File from Malaysia in about 15 minutes, or read the FTIN and reference ID guide first.

Splitting the year across several countries? The Form 5472 guide for digital nomads covers filing when you have no single tax residence.

Educational content only; not tax or legal advice.