If you wonder why it is important to hire corporate tax services in Malaysia, there are numerous reasons to do so. The first one relates to handling the complex matters of corporate tax, as it requires an integrated and disciplined approach.
Secondly, corporate taxation is the key element of the country’s tax regime. Hence, every business entity must comply with the prevailing tax environment to avoid financial penalties.
This requires that companies must manage their corporate tax matters effectively. So, to reach this goal, businesses prefer to hire reliable and professional corporate tax services.
What is Corporate Tax
A resident company that receives income either inside or outside Malaysia is charged with corporate tax. In fact, the foundation of Malaysia’s tax net is based on a self-assessment regime.
Meaning thereby, it is the responsibility of the company to assess and file the tax returns within seven months of every fiscal year-end.
Besides, companies are allowed to pay advance corporate tax in the shape of a monthly installment (12 monthly installments). Nevertheless, such a company can’t submit consolidated returns.
Hence, the company must submit a tax return separately. On the contrary, a company is charged with financial penalties if it fails to comply with the corporate tax.
Corporate Tax Rate
The companies operating in Malaysia are bound to pay corporate tax at a rate of 24%. This particular rate of corporate tax is relatively lower as compared to the previous years. In addition, Small and medium enterprises (SMEs) are taxed differently.
This is so, as these companies possess a paid-up capital that is either RM2.5 million or less. Talking about the evaluation, it is performed at the start of every year of assessment (YA).
If the company shows an income of RM500,000, the corporate tax rate is 18%. On the other hand, an SME is charged at a rate of 24% if it exceeds the limit of its chargeable income.
To avoid any miscalculations, companies prefer to hire corporate tax services in Malaysia
Corporate Tax Services in Malaysia
Being an experienced tax firm, YH Tan & Associates knows the corporate tax challenges faced by companies. Our expert team understands the tax laws, tax procedures, and use of the latest technology.
When it comes to corporate taxation, we can help companies to meet the following requirements.
- Submission of the estimated tax payable either via e-Filing or manually to the LHDNM Processing Centre
- Furnishing the Form C either via e-Filing manually to the LHDNM Processing Centre
- Submission of the Form R
- Paying the balance of tax payable
- Strategic tax planning
- Making adjustments regarding the non-taxable income or other deductibles
- Maintaining an updated tax record
You can also take advantage of our corporate tax services if your company has undergone transformative changes. These include:
- Technology changes & integrations
- Operational or leadership changes
- Standard regulatory changes
- Business expansion (offering new services or reaching new markets)
Corporate Tax Compliance
Our professional staff is always there to assist you when complying with the corporate tax rules and regulations. We offer a variety of tax compliance services starting from tax planning to submission of Form CP204.
We make sure to help our clients while handling their tax compliance matters across the local as well as international jurisdictions. The services mentioned below can improve and streamline the tax compliance process.
- Selection/optimization of technology
- Making workflow improvements
- Taking care of tax matters related with mergers and acquisitions
Furthermore, we can help you to create a viable business strategy that is capable of ensuring effective tax results. If you are looking for corporate tax services in Malaysia, feel free to contact us!