Malaysia Tax & Corporate Compliance FAQs
Accounting, Tax and Corporate Services FAQs in Malaysia
Need help incorporating a Sdn Bhd or with transfer pricing?
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 frameworksWhat 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.
Do Malaysia’s transfer-pricing rules apply to transactions between Malaysian related companies?
Yes. Malaysia’s arm’s-length principle can apply to domestic as well as cross-border controlled transactions. The applicable documentation scope and exemptions depend on the parties’ tax positions, the transaction amounts and current LHDN rules. An exemption from preparing full or minimum CTPD does not automatically remove the need for arm’s-length pricing.
How should a business choose CUP, Cost Plus or TNMM?
The choice depends on the transaction, the functions, assets and risks of each party, and the reliability of available comparable data. CUP is strongest when a reliable comparable price exists; Cost Plus often suits routine services or manufacturing; and TNMM is commonly used when reliable direct price or gross-margin comparisons are unavailable.
What information does HTL need to scope a transfer pricing engagement?
HTL normally needs the group structure, related parties, transaction types and annual amounts, agreements, financial statements or ledger extracts, descriptions of functions, assets and risks, and any existing transfer pricing documentation. This helps determine whether full CTPD, minimum CTPD or a targeted review is appropriate.
Read HTL’s Malaysia transfer pricing methods guide · Explore transfer pricing services · Official LHDN 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 sent by email.
What is the Malaysia e-Invoice exemption threshold from 1 September 2026?
A taxpayer with annual turnover or revenue of less than RM3 million may qualify for the e-Invoice exemption from 1 September 2026, provided all conditions in LHDN e-Invoice Guideline Version 4.8 are met.
Does every business below RM3 million qualify for the exemption?
No. The exemption is subject to ownership and group conditions. Key exceptions include certain businesses with a non-individual shareholder, holding company, subsidiary, related company or joint venture whose annual turnover or revenue is at least RM3 million. Each group structure should be checked against the current LHDN guideline.
What is the current mandatory e-Invoice implementation timeline?
The main phases began on 1 August 2024 for taxpayers above RM100 million, 1 January 2025 for those above RM25 million and up to RM100 million, 1 July 2025 for those above RM5 million and up to RM25 million, and 1 January 2026 for those up to RM5 million. From 1 September 2026, eligible taxpayers below RM3 million are exempt, subject to the current conditions.
Did every taxpayer have to implement e-Invoice on 1 July 2026?
No. Under HASiL’s FAQs updated on 4 September 2026, 1 July 2026 is the concessionary implementation date for certain taxpayers that reached or exceeded RM3 million in YA2023, YA2024 or YA2025, and for certain taxpayers that do not satisfy the exemption conditions. A business below RM3 million that satisfies all current exemption conditions is exempt.
What happens if an exempt business later reaches RM3 million?
The business is generally required to implement e-Invoice from 1 January in the second year following the year of assessment in which its annual turnover or revenue reaches or exceeds RM3 million.
Can a business that implemented on 1 January or 1 July 2026 stop issuing e-Invoices?
Yes, if its annual turnover or revenue remains below RM3 million and it satisfies all current exemption conditions. It may discontinue issuing e-Invoices from 1 September 2026 without a separate application or prior HASiL approval, even if it started under the former lower threshold.
A business must continue if it reached or exceeded RM3 million, or if it does not satisfy the ownership and group conditions. Once a mandatory implementation year has been determined because the RM3 million threshold was reached, a later fall below RM3 million does not restore the exemption.
What is the interim relaxation period for the 1 January and 1 July 2026 groups?
HASiL’s latest FAQ states that taxpayers with mandatory implementation dates of 1 January 2026 or 1 July 2026 receive interim relaxation until 31 December 2027. This is not an exemption: a mandatorily covered taxpayer remains within the e-Invoice regime and must follow the permitted interim-relaxation treatment.
What is the e-Invoice Special Voluntary Disclosure Programme (SVDP)?
The e-Invoice SVDP runs from 7 July 2026 until 31 December 2027. A taxpayer that remains required to issue e-Invoices may use it to correct omitted transactions, inaccurate information or other identified non-compliance. No separate registration or application is required. Disclosures use document version SVDP 1.2 without a digital signature or SVDP 1.3 with a digital signature. HASiL’s announcement states that qualifying voluntary corrections may be made without penalties.
Does a newly exempt business need to use SVDP before stopping?
No. HASiL’s latest FAQ states that a business below RM3 million which meets all exemption conditions is not required to use SVDP for e-Invoices omitted under the former lower threshold. It may discontinue immediately. A business that remains mandatorily covered should review any omissions or errors and consider SVDP before 31 December 2027.
Can an exempt business adopt e-Invoice voluntarily?
Yes. An eligible exempt business may choose to implement e-Invoice voluntarily through MyInvois, but it should understand the operational and record-keeping requirements before doing so.
Where can a business get help with e-Invoice implementation?
HTL can assist with readiness reviews, process mapping, MyInvois setup and implementation support. Explore HTL’s e-Invoice implementation services.
Last updated: 6 September 2026
Official references: LHDN e-Invoice implementation timeline , e-Invoice Guideline Version 4.8 and HASiL General FAQs updated 4 September 2026 and HASiL e-Invoice SVDP announcement.
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
What is a Bumiputera company in Malaysia?
A Bumiputera company generally refers to a Malaysian business substantially owned and genuinely controlled by Bumiputera individuals. The exact test depends on the programme or authority. Registration with SSM does not by itself grant MOF or CIDB Bumiputera recognition.
Is 51% Bumiputera ownership sufficient?
Not necessarily. For MOF/ePerolehan recognition, meeting an equity threshold is only part of the assessment. Directors, key management, employees, financial control and actual operations may also be reviewed. A nominal arrangement without genuine Bumiputera control may not qualify.
Does SSM issue a Bumiputera-status certificate?
No. SSM registers the company and records its shareholders, directors and share capital, but it does not determine Bumiputera status. Formal recognition must be obtained from the relevant authority, such as MOF/ePerolehan for federal supply and service procurement or CIDB for construction.
What are the benefits of Bumiputera company status?
Depending on the programme, recognised companies may qualify for selected government procurement opportunities, applicable procurement preferences, Bumiputera contractor opportunities, vendor-development programmes, financing, training or commercial premises. Status does not guarantee a contract, grant or loan and does not replace other eligibility conditions.
Which industries may require or consider Bumiputera participation?
Bumiputera participation is commonly relevant to federal procurement, government construction, selected PETRONAS or GLC vendor categories and Bumiputera-focused financing or premises programmes. There is no universal rule requiring every Malaysian company to be Bumiputera-owned; each licence, tender and programme should be checked separately.
What is the difference between MOF Bumiputera status and CIDB STB?
MOF Bumiputera status relates mainly to federal supply and service procurement through ePerolehan. CIDB’s Sijil Taraf Bumiputera (STB) recognises eligible Bumiputera construction contractors. A construction business may also require other CIDB registrations or certificates; STB does not replace them.
Does Bumiputera status provide a lower corporate tax rate?
No. Bumiputera status does not create a separate corporate income-tax rate. A company’s tax rate depends on the Income Tax Act, its eligibility for SME rates and any separately approved tax incentive.
What is the SSM fee to incorporate a Sdn. Bhd.?
The MyCoID/SSM online payment is normally RM1,010 for direct incorporation: RM1,000 prescribed registration fee plus RM10 integration cost. If a separate name reservation is submitted first, the fee is RM50 for each proposed name. Professional fees, registered-office services, company-secretarial services and licence fees are separate.
How long does Sdn. Bhd. incorporation normally take?
There is no guaranteed approval period. Timing depends on name approval, complete and consistent information, any additional documents requested by SSM, and whether the proposed activity is regulated. Preparing the business activities, addresses, ownership and director information in advance helps reduce avoidable delays.
What is included in HTL’s company incorporation service?
HTL can assist with name and structure planning, preparation of incorporation information, the SSM submission, appointment of a licensed company secretary, statutory records, and coordination of accounting, tax and payroll setup. Government approvals and industry licences remain subject to the relevant authorities.
What should a company do immediately after Sdn Bhd incorporation?
Appoint the first company secretary within 30 days, confirm the registered office and required business licences, open a company bank account, verify the company TIN and MyTax access, and start accounting records from the first transaction. Add payroll registrations and employee notifications when staff are hired.
How does a new Sdn Bhd open a corporate bank account?
Banks commonly request incorporation documents, ownership and beneficial-owner details, directors’ and authorised signatories’ identification, board approval and evidence of the proposed business and source of funds. The documents, interview and approval process differ by bank.
Does SSM incorporation replace a business licence?
No. SSM incorporation creates the company but does not authorise every business activity or premises. A local-authority premises or signboard licence and sector-specific approvals may be required before trading, depending on the location, activity and ownership.
Is a new company’s TIN created automatically through MyCoID?
HASiL states that a TIN for a newly incorporated local company registered online through SSM MyCoID is generally registered automatically. The company should still verify the number, arrange MyTax access and representative roles, and confirm its address, financial year end and business-commencement details.
When must a new employer register with EPF, SOCSO and EIS?
These obligations begin when the company hires employees. EPF states that an employer must register within seven days from the date it becomes liable to contribute. An employer with one or more employees must also arrange the applicable PERKESO/SOCSO and EIS registrations and contributions under the current rules.
What is CP22 and when is it due?
CP22 is the notice of a new employee. Where the employee is or is likely to be chargeable to tax, the employer generally submits e-CP22 through MyTax within 30 days after employment starts.
Is CP21 required when a company hires its first employee?
No. CP21 is not a first-hire form. It generally applies when an employee is expected to leave Malaysia for more than three months and is normally submitted at least 30 days before departure. CP22 or e-CP22 is the new-employee notice where applicable; CP22A covers cessation or death of a private-sector employee where applicable.
Must employment contracts signed in 2026 be stamped?
Employment contracts executed from 1 January 2026 are generally subject to RM10 stamp duty and should normally be stamped within 30 days if executed in Malaysia. The signed document and current HASiL guidance should be checked because late stamping may attract penalties.
Read HTL’s 2026 Sdn. Bhd. incorporation guide · Read HTL’s complete 2026 Bumiputera company guide · Official MOF/ePerolehan supplier guidance · Official CIDB contractor guidance
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.