Foreign investors who want to open a company in Malaysia are advised to receive assistance from our accountants in Malaysia for the financial activities carried out in their firm. As a general rule, companies incorporated in Malaysia can carry out their own accounting services, but it is recommended to ask for the professional services of anaccounting firm in Malaysia that is familiar with the local legislation. If the accounting services are outsourced or carried out by accounting professionals, the company will reduce its general costs. Our team of accountants in Malaysia can provide assistance on the various types of accounting services, and offer information about CPA in Malaysia.
| Quick Facts | |
|---|---|
| Who requires accounting services in Malaysia? | All operational companies in Malaysia must align with the accounting rules in this country. |
|
Applicable accounting legislation in Malaysia |
– MFRS (Malaysian Financial Reporting Standards), – IFRS (International Financial Reporting Standards) |
|
Types of accounting services we offer |
Bookkeeping and payroll are the most important accounting services for a firm in Malaysia. Our accountants can provide support for preparation and filing of annual financial statements. |
| Tax advice and compliance |
Company owners can be guided regarding the obligation to register for the payment of taxes and respect the deadlines. |
| We offer support for tax registration |
We can manage the paperwork and collaborate with the relevant tax authorities. |
| Financial planning for company owners in Malaysia |
Varied tax reports can be requested for a correct financial planning for business owners in Malaysia. |
| Risk assessment and evaluation |
Financial risks in business can be anticipated with the help of an experienced accountant in Malaysia. |
| Types of audit services |
Internal and external audits are important for the smooth running of business. Our certified public accountant can deal with external ones. |
| Tax minimization methods available |
– tax credit planning, – retirement planning, – charities, – tax-free investment, – stock options |
| Personalized financial consultancy services |
Expert financial advice for business owners or investors in Malaysia |
| Investment consultancy for high-net-worth individuals |
– dedicated business plans, – investment solutions, – wealth management for international investors in Malaysia |
| Financial and analysis reports for companies |
Tax reports can be made by our accountants in Malaysia and can reveal the financial situation of a firm. Specific measures can be adopted for vulnerable departments. |
| Human resources services available |
We can manage the recruitment process and draft the employment contracts. Staff-related administration matters enter our attention. |
| Expertise provided by certified accountants (YES/NO) |
Yes |
| Fiscal year in Malaysia |
From January 1st to 31st of December |
Table of Contents
Types of accounting services in Malaysia
Any newly incorporated company in Malaysia is required to perform several accounting activities, as prescribed by the local legislation. Our accountants in Malaysia can provide assistance in this sense on a wide area of services, such as:
- bookkeeping;
- payroll administration;
- monthly or quarterly submission for Goods and Service Tax (GST);
- statutory audit;
- corporate taxation and submission to the local tax authorities.
According to Malaysian legislation, all companies established here are required to keep a book of accounts in accordance with the provisions of the Companies Act. Bookkeeping, which refers to the registration of the company’s transactions, is one of the most crucial accounting activities and good management of this process can facilitate the audit procedure. Our accounting firm in Malaysia can assist companies in administering payroll activities, performed in accordance with specific procedures. You can also benefit from the services of a chartered accountant in Malaysia.
We have prepared an infographic with details on the accounting services we offer in Malaysia:
GST accounting services in Malaysia
All companies in Malaysia have to comply with the legislation for the GST in accordance with the provisions of the Goods and Services Tax Act 2014. For example, businesses with a turnover established at a value above RM 500,000 in the last year of activity and with a projected turnover above the mentioned sum for the following financial year must register as taxable person at the Royal Malaysian Customs. The rule also mentions that the entity has to file for periodic GST returns; our team of accountants in Malaysia can assist managers in this process, from the registration phase to regular payments of GST.
More details on accounting in Malaysia are available in the video below. You can get in touch with our accounting firm in Malaysia at any time.
CPA in Malaysia
CPA in Malaysia means Certified Public Accountant and those interested in working in this field must prove that they have these qualifications. Basically, it can be said that accountants must be members of the Malaysian Institute of Accountants, or MIA, as it is known, to be able to offer accounting services.
We mention in this article that our accountants in Malaysia are CPAs and can provide complete accounting services to any type of company registered in this country. Please get in touch with our accounting firm in Malaysia and discover our services.
Benefit from the services of a chartered accountant in Malaysia
A chartered accountant in Malaysia has high qualifications and experience compared to a normal accountant. Also, the services offered by a chartered accountant in Malaysia may have higher prices. Let’s review what chartered accountant means in Malaysia:
- Studies make the difference, and a chartered accountant has more knowledge in this field because he also deals with other aspects related to a company’s accounting.
- Experience speaks for itself in the case of a chartered accountant. He also has specific professional accreditations.
- A chartered accountant in Malaysia can be a member of the Chartered Institute of Management Accountants.
- You can benefit from the services of a chartered account either as an employee in a company or by activating your own account.
- Such an accountant can make important financial decisions in a company and is often found in key positions such as Chief Financial Officer.
- Both companies and high-net-worth individuals can receive personal financial advice from a chartered accountant.
- This specialist can provide expertise in the case of commercial fraud in Malaysia.
So, if you need the services of a chartered accountant in Malaysia, you can contact our accountants in Malaysia.
What is forensic accounting in Malaysia?
Forensic accounting in Malaysia is a type of accounting often encountered in cases of fraud or financial crimes in a company. The expert in forensic accounting in Malaysia goes beyond the numbers and makes detailed analyses, in order to be able to determine the required legal proceedings. Here are other interesting aspects of forensic accounting in Malaysia:
- The financial complexities of the business environment can be analyzed in detail.
- Banks, insurance companies, and government agencies are the institutions that can hire the services of forensic accounting in Malaysia.
- These experts can do financial analyzes and business investigations to provide the necessary information in order to solve cases of fraud in companies.
- The services of forensic accountant in Malaysia can be requested in cases of litigation, where it can be used as a witness.
If you want the services of such an accountant, you can contact our accounting firm in KL.
If you would like to open a business in Malaysia, you can choose a limited liability company, the most accessible and simple structure. With only 1 USD as minimum share capital, the company can start its activities. One shareholder is enough and there is no obligation to have a local director. Get in touch with our local specialists to benefit from full support in this endeavor.
Payroll in Malaysia
Payroll in Malaysia is another important process that falls into the area of accounting. The procedures involve the calculation of salaries, after payment of taxes, as well as their payment to the employees’ accounts. The specialists can also deal with personnel administration, staff recruitment, and the drafting of employment contracts, among others.
If you want to invest in Malaysia, the following information may be useful:
- Around USD 187 billion represented the total FDI for Malaysia in 2021.
- The value of greenfield investments was approximately USD 24 million in the same year.
- Singapore represented the largest foreign investor in Malaysia in 2020, with over 21% of the total foreign investment registration.
- The manufacturing sector received the most foreign investments, over 39% of the total registered in 2020.
The corporate tax in Malaysia
Corporate taxation in Malaysia applies according to the residence of the legal entity. A company is a Malaysian resident if it has its management centre in the country or it is otherwise controlled from here. Corporations are taxed on the income they produce from a Malaysian source. Income derived from another country by a Malaysian company is free from tax except for a number of business fields, like insurance, banking or the shipping sector/air transportation.
The taxable corporate income includes business profits from the ongoing trade or business, dividends, interest and royalties received by the company, premiums, income from rent or other types of income. No withholding tax applies on dividends in Malaysia. A 10% withholding tax applies for royalties and the rental of a movable property while a 15% tax applies to interest payments.
More than 70 double tax treaties concluded with countries worldwide guarantee double taxation relief for companies that derive income both from Malaysia and another country. Our accountants in Malaysia can help you determine if and how you can benefit from double taxation relief. Other taxes on companies levied in Malaysia include the capital duty tax, the real property tax, the payroll tax and the social security tax, payable both by the employer and the employee.
The tax year is generally the same as the accounting year and companies must file the tax returns under a self-assessment regime. The tax return is due within a seven-month period until the end of the fiscal year. Failure to comply with the existing deadlines results in penalties. One of our Malaysian lawyers can give you more information about accounting and annual reporting compliance.
If you need further information on the accounting services, please address our accountants in Malaysia, who can offer you assistance in this matter. You can rely on the services offered by our accounting firm in KL.