Auditing & Taxing Services

http://www.registeracompany.com.my/auditing.do

Auditing & Taxing Services

Auditors 
  
Under the Malaysian Company Act 1965 all limited company must appoint a Auditor for the company within three (3) months after incorporation.  The first Auditor appointment is the responsibilities of the Directors and they hold office until the first general meeting at which the company audited accounts are considered. 
  
An approved auditor is one who has the necessary qualification and has been granted approval to act as auditor by the Malaysian Minister of Finance. 
  
Audited Accounts 
  
Pursuant to sections 167 of the Companies Act 1965, the directors of a company are responsible for ensuring that the company keeps accounting records sufficient to explain the transaction of the company.  The accounts should be sufficient to determine the financial position of the company and enable true and fair profit and loss accounts and balance sheets to be prepared suitable for audit.  The records must be kept for at least seven years. 
  
Every year the company must table at the company Annual General Meeting an Audited Accounts of the company before lodgement with CCM. 
  
Taxation 
  
The Self Assessment System was introduced for companies from the year 2001.  Under this system, the directors of a company are responsible to determine their own tax liability and make payment to the IRB. 
  
Taxpayers have to determine their correct tax liability and make payments promptly.  That does not mean that the IRB would not examine the return forms at all.  A certain percentage of the return forms will be audited.  It is very likely that IRB will audit those returns with a high probability of under declaration of taxable income or tax payable and those that are inherently of high risks to revenue. 
  
Companies have to maintain a good record keeping system.  This will help in verifying any claims made should the IRB require them to be produced or when the taxpayer are being audited.
  
A newly commenced company shall furnish an estimated tax payable within 3 months from the date of commencement and payments are made from the 6th month of the basis period. 
  
Company newly commencing operation can furnish any amount that it deems reasonable as the estimated tax payable for that year of assessment so long as the variance between the actual tax and the estimated tax is not more than 30%.
 

Our panel of Auditor is Bahudin & Associates.  Tel: 03-8024 0833 Fax: 03-8024 7833 or e-mail atbahudin@pd.jaring.my.

Goods & Services Tax (GST) in MalaysiaScope
Supply of goods and services
-GST is charged on the taxable supply of goods and services made by taxable person in the course or furtherance of business in Malaysia inclusive of importation of goods and services.

Tax Rate
Standard rated
-An indicative rate of 4% was suggested on GST
-Eligible to claim input tax credit on business inputs

Zero rated
-Zero rate
-Eligible to claim input tax credit on business input

Exempt
-Exempted from GST
-Not eligible to claim GST incurred on business inputs

Taxable Person
A person includes
-an individual, sole proprietor and partnership
-company, club, association, society, co-operative , trade union, non profit body and unincorporated bodies
-trust, trustee, executor, administrator and joint venture
-Federal Government, State Government, statutory body and local authority
A taxable person is a person who is or is required to be registered under the GST Act

Registration
The indicative threshold to register for GST is above RM500,000.00 taxable turnover
 -Voluntary registration is permitted where the business has not achieved the mandatory threshold
-Registration is not required for exempt supply and designated area

Taxable Period
The registered person will be allocated monthly, quarterly and six months taxable periods according to the annual business turnover on the approval of GST registration - GST Act Section 40
Indicated:
-Monthly for a person with turnover in excess of RM5million as well as export-based entities
-Quarterly for a person with turnover of less than RM5million
-Six-monthly for others small businesses and seasonal sales

Submission of Returns and Payment of Tax
-Every taxable person shall submit to the Director General of Royal Malaysian Customs a return not later than the last day of the following month after the end of the taxable period
-Every taxable person shall keep the accounting records relating to GST for a period of 7 years - GST Act Section 36
-Penalties will be incurred for late GST payment

What can you do to prepare for GST in Malaysia?

1.  Keep your accounting record up to date
2.  Register your Business on time
3.  Issuing the required Tax Invoices
4.  Filing and payment of Tax Returns
5.  Input tax credit mechanism and claiming GST refunds
6.  Training your staff from all levels to deal with GST
7. Learn how to manage your cash flows affected by the GST system
8. Avoid fines and penalties for no filling, no/late registration, improper record-keeping, incorrect accounting and incorrect submission of GST tax return to Royal Malasian Customs Department

Contact us now!!

Spektra Management Sdn Bhd 
Tel: 03-8024 0255 or 016-6296 550 (Hema)
Fax: 03-8024 7833
e-mail: mag@spektra.net.my