Malaysia Tax & Corporate Compliance FAQs
Accounting, Tax and Corporate Services FAQs in Malaysia
Find concise answers about company incorporation, company-secretarial duties, business-entity selection, corporate tax, transfer pricing, tax incentives, SST, e-Invoice, personal tax, SSM compliance, audit preparation, accounting, payroll and Mobile CFO services in Malaysia.
Last updated: 5 August 2026 | Official regulatory references checked on the same date.
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What does corporate tax compliance normally include?
Corporate tax compliance commonly includes preparing tax computations, filing returns, reviewing tax instalments and maintaining supporting records in line with current LHDN requirements.
What should a business do after receiving an LHDN tax audit notice?
Review the deadline, preserve the relevant records and seek professional support promptly before responding to LHDN.
How can HTL support an LHDN tax audit?
HTL can review records, identify issues, prepare explanations and supporting schedules, and assist with correspondence and meetings with LHDN.
Explore corporate tax services · Explore LHDN tax audit support · Official HASiL frameworks
What is transfer pricing in Malaysia?
Transfer pricing concerns transactions between associated persons, such as related companies. These transactions should follow the arm’s-length principle, meaning the pricing should be comparable to what independent parties would agree under similar circumstances.
When should a business review its transfer pricing obligations?
A business should review its obligations when it has domestic or cross-border transactions with related parties, including sales, services, royalties, loans or other financial assistance. The required documentation depends on the facts and current LHDN rules.
How can HTL assist with transfer pricing?
HTL can review related-party transactions, develop transfer pricing policies, prepare supporting analyses and contemporaneous transfer pricing documentation, and support businesses during LHDN enquiries or audits.
Explore transfer pricing services · Official HASiL transfer pricing guidance
What is a tax incentive application in Malaysia?
A tax incentive application is a formal request for an available tax exemption, allowance or other incentive under the applicable programme. Eligibility, conditions and the approving authority depend on the business activity, investment and current rules.
Which authorities may be involved in a tax incentive application?
Depending on the incentive, the relevant authority may include MIDA, MITI, LHDN or another government agency. The correct route should be confirmed before an application is prepared.
Can HTL assist with tax incentive applications?
Yes. HTL can assess eligibility, prepare supporting documents and assist with applications and liaison with the relevant authorities. Approval remains with the responsible authority.
Explore tax incentive application services · Official MIDA website · Official MITI website
Does every Malaysian business need to register for SST?
No. Registration depends on the taxable activity, applicable industry threshold and current Royal Malaysian Customs requirements.
Can HTL assist with SST exemption or relief applications?
Yes. HTL can assess the requirements, prepare supporting documents and assist with the application. Approval remains with Royal Malaysian Customs.
What is the difference between Sales Tax and Service Tax in Malaysia?
Sales Tax generally applies to taxable goods manufactured in Malaysia or imported into Malaysia, while Service Tax applies to prescribed taxable services provided by registered persons. Whether either tax applies depends on the business activity, registration threshold and current Royal Malaysian Customs rules.
What is an e-Invoice in Malaysia?
An e-Invoice is a structured digital record of a transaction submitted to and validated through LHDN’s MyInvois system; it is not simply a PDF invoice.
How can a business confirm whether e-Invoice requirements apply?
Applicability depends on current LHDN implementation rules, business turnover and any available exemptions. Businesses should verify the latest LHDN guidance rather than rely on an old timeline.
Which businesses may qualify for an e-Invoice exemption, and how is the implementation date determined?
Eligibility and implementation timing depend on current LHDN rules, turnover or revenue, the year the business commenced and whether all exemption conditions are met. Businesses should assess their facts against the latest LHDN e-Invoice FAQ and guidelines. Last reviewed: 29 July 2026.
Explore e-Invoice implementation support · Current LHDN e-Invoice guidelines
Who should assess whether an individual income tax return is required in Malaysia?
Individuals who receive income connected with Malaysia should assess their filing position based on their residence status, income sources and current LHDN requirements. The correct treatment depends on the individual’s circumstances.
What is the difference between Form BE and Form B?
Form BE is generally used by a resident individual with employment or other non-business income, while Form B is generally used by a resident individual who carries on a business. Taxpayers should confirm the correct form for the relevant year of assessment.
Can HTL assist with personal income tax compliance?
Yes. HTL can review the information provided, prepare the relevant tax computation and return, and assist with supporting schedules or LHDN queries within the agreed scope.
Contact HTL about personal tax · Official HASiL filing guidance
When must a Malaysian company appoint its first company secretary?
A Malaysian Sdn. Bhd. must appoint at least one qualified company secretary within 30 days after incorporation. The secretary must meet the Companies Act 2016 and SSM requirements.
What does a company secretary do?
A company secretary maintains statutory registers, prepares directors’ and shareholders’ resolutions, lodges annual returns, records changes involving directors, shareholders, shares and registered offices, and supports beneficial-ownership compliance. The role does not replace the company’s accountant, tax agent or independent auditor.
What information is normally needed to incorporate a Sdn. Bhd.?
Typical information includes the proposed company name, business activities, registered-office and business addresses, and the particulars of directors, promoters and shareholders. At least one director must ordinarily reside in Malaysia.
Should I choose a Sdn. Bhd., partnership or sole proprietorship?
A sole proprietorship may suit one owner starting a smaller, lower-risk business. A conventional partnership suits two to 20 owners but generally exposes the partners to personal liability. A Sdn. Bhd. has more compliance obligations but offers a separate legal identity, limited liability and better continuity for growth.
How are a Sdn. Bhd., partnership and sole proprietorship taxed?
A sole proprietor is taxed personally at resident-individual progressive rates. A conventional partnership is not taxed at partnership level; each partner is taxed on the allocated share. An eligible resident Sdn. Bhd. may be taxed at 15% on the first RM150,000, 17% on RM150,001 to RM600,000 and 24% above RM600,000. Other companies are generally taxed at 24%, subject to current eligibility rules.
What annual compliance obligations does a Sdn. Bhd. have after incorporation?
Common obligations include maintaining statutory and beneficial-ownership records, lodging the annual return and applicable financial statements with SSM, documenting company decisions, keeping accounting records and meeting tax-filing requirements. The exact obligations depend on the company’s circumstances and current regulations.
Explore company incorporation services · Explore company secretarial services · Official SSM company guidance · Official SSM entity comparison · Official HASiL public rulings
Does HTL perform the statutory audit?
No. HTL prepares audit-ready accounting records and coordinates information requests with the appointed independent approved auditor. The independent auditor performs the statutory audit and issues the audit opinion.
Why does a Sdn. Bhd. need an auditor?
An independent audit provides assurance on the company’s financial statements and may be required by law, shareholders, banks, investors, regulators, tenders or group reporting policies. A qualifying private company may elect audit exemption under the current SSM criteria.
Who may qualify for audit exemption in Malaysia in 2026?
For a financial period commencing in 2026, a private company may qualify by meeting at least two of three limits: annual revenue not exceeding RM2 million, total assets not exceeding RM2 million and no more than 20 employees. SSM’s past-year tests, exclusions and procedural requirements also apply.
Does audit exemption mean no financial statements are required?
No. An audit-exempt company must still maintain proper accounting records, prepare financial statements using an applicable approved accounting standard, circulate them to members and lodge the unaudited financial statements with SSM together with the required audit-exemption certificate.
What records are normally needed for audit preparation?
Typical records include the trial balance, ledgers, bank reconciliations, receivable, payable, inventory and fixed-asset schedules, agreements, invoices and supporting documents. Complete and reconciled records reduce delays and repeated audit queries.
Explore audit preparation assistance · Official SSM Practice Directive 10/2024
Accounting & Bookkeeping
What is the difference between accounting and bookkeeping?
Bookkeeping records daily financial transactions, while accounting organizes and interprets those records for reporting, compliance and business decisions.
What records should a business provide for monthly accounting?
Common records include sales and purchase invoices, bank statements, payment documents, payroll information and supporting documents for business transactions.
Explore accounting and bookkeeping services
Payroll Services
What does payroll support normally include?
Payroll support can include salary calculations, payslips, statutory contribution schedules and monthly payroll reports based on information supplied by the employer.
Can HTL support EPF, SOCSO, EIS and PCB submissions?
Yes. HTL can prepare and support the relevant statutory calculations and submissions, subject to timely and accurate information from the employer.
Does HTL’s payroll service include EA Forms, Form E and employee tax-clearance support?
Yes. Subject to the agreed scope and complete information from the employer, HTL can assist with EA Forms, Form E and relevant employee notification or tax-clearance documentation such as CP21, CP22 and CP22A where applicable.
Mobile CFO
What is a Mobile CFO?
A Mobile CFO provides part-time or outsourced financial leadership, including management reporting, cash-flow planning, budgeting and decision support without the cost of a full-time CFO.
When should a business consider Mobile CFO support?
A growing business may benefit when management needs stronger financial insight, controls and planning but does not require a full-time CFO.
What is the difference between a Mobile CFO and an accountant or bookkeeper?
A bookkeeper records transactions and an accountant prepares and interprets financial information. A Mobile CFO uses those records to support management with cash-flow forecasting, budgeting, performance analysis, internal controls and strategic financial decisions on an outsourced or part-time basis.
PERKESO LINDUNG 24 Jam
What is PERKESO LINDUNG 24 Jam?
LINDUNG 24 Jam is PERKESO’s additional protection for eligible employees against accidents occurring outside working hours, subject to the scheme’s terms and eligibility requirements.
Is LINDUNG 24 Jam participation automatic?
Eligible employees may be enrolled under the scheme according to PERKESO’s implementation rules. Employers and employees should check the current status and contribution arrangements through the official PERKESO channels.
Can an employee opt out of LINDUNG 24 Jam?
Yes. An eligible employee who does not wish to participate may submit an opt-out request through PERKESO’s official LINDUNG benefits portal, subject to the current procedure and effective date.
Can an employee opt back in after opting out?
Yes. An employee may submit an opt-in request through the official portal, subject to PERKESO’s current rules and the effective date shown by the system.
Does opting out affect compulsory work-related SOCSO protection?
Opting out concerns the additional LINDUNG 24 Jam protection. It does not replace the employer’s existing statutory responsibilities for compulsory employment-related social security coverage.
How should employers manage LINDUNG 24 Jam choices?
Employers should communicate the official information, keep the employee’s confirmed choice, apply the correct contribution treatment and refer employees to PERKESO for benefit or eligibility decisions.
Official PERKESO LINDUNG 24 Jam information · Official opt-in/opt-out portal
What should a business compare when choosing an accounting, tax or company-secretarial firm in Johor Bahru?
Compare the firm’s professional qualifications and licences, the exact scope of work, experience with your industry, response times, deadline controls, fee transparency and whether advice is supported by current official guidance. Confirm separately who will perform any statutory audit.
Can one firm handle company incorporation, company secretary, accounting and tax?
Yes, if the provider has the appropriate qualifications and licences for each regulated service. A coordinated team can reduce duplicated information and missed deadlines. Statutory audits must remain independent and are performed by an appointed approved auditor.
What regulated professional services is HTL authorised to provide in Malaysia?
HTL provides accounting and bookkeeping, taxation and tax compliance, tax-incentive applications, transfer pricing, SST, payroll, company incorporation and company-secretarial services, Mobile CFO support, LHDN tax-audit support and audit preparation. Tay Hui Wen is an MOF-approved licensed tax agent and an SSM-licensed company secretary; Ling Wei Kae is an SSM-licensed company secretary. Statutory audits are performed by an appointed independent approved auditor.
Can HTL take over accounting, tax or company-secretarial work from another provider?
Yes. HTL can review the existing records, identify outstanding compliance matters, coordinate the transfer of available documents and agree on a practical handover plan. The timing depends on the service, filing deadlines, condition of records and cooperation of the outgoing provider.