How Outsourcing Works in Malaysia
Since all companies registered in Malaysia must keep proper books of accounts as stipulated by the country’s Companies Act 2016, engaging the leading company registration specialist in the region, InCorp Global, is a good idea.
As part of our comprehensive range of outsourcing services, our team of experts will help you with payroll management, and bank account reconciliation (verifying and making compatible company’s bank statement with its cash account in the general ledger and conversely); as well as general ledger maintenance; accounts payable ledger maintenance; accounts receivable maintenance; fixed assets ledger maintenance; budgeting; financial statements; monthly, quarterly, annual reports; books clean-up; financial analysis; profit and loss record; and associated administration works.
So in a nutshell, we will make sure that your firm meets all the bookkeeping and accounting requirements as per the Inland Revenue Board of Malaysia (IRBM).
With our services, you get a dedicated account manager – providing both continuity and familiarity – will assess your business’ accounting needs; review and organize all your financial documents to maintain your accounts ledgers in a systematic manner; deliver your financial statements in accordance with the statutory guidelines; and finally, monitor any statutory compliance issues that may arise from time-to-time. With a team of experienced chartered accountants and tax experts, we are a market leader in all accounting and tax statutory matters relating to the Malaysian jurisdiction.
A Few Things We Consider for Proper Bookkeeping and Accounting in Malaysia Are:
- While the standard rate of corporate taxation in Malaysia is 24%; for SMEs (or group with paid-up capital of RM2.5 million or less), the rate gets reduced to 17% from year-of-assessment (YA) 2020 onwards, on the first RM600,000, with the balance being taxed at 24%. For personal taxation, progressive rates up to 30% are imposed.
- All individuals and companies are taxed on income derived in the country, and foreign-sourced income is generally exempt. While an individual must file a tax return and settle any balance owed by 30 April or 30 June (depending on the type of taxpayer), respectively, in the following calendar year; companies must file their returns within seven months of the company’s fiscal year-end (FYE), which is generally the accounting year.
- There is no capital duty payable; an employee’s income is taxed by the employer under a pay-as-you-earn scheme and remitted to IRBM, and a real property tax is levied on “quit” rents by different Malaysian states at varying rates.
- Malaysia also has mandatory social security contributions to the Social Security Organization (SOCSO), Employment Insurance System (EIS), and the Employees Provident Fund (EPF) by both employees and employers.
If the above seems too daunting, InCorp Global can help take care of all your accounting, payroll management, and tax filing needs. When you engage us, you get the following benefits:
- Insights for sound business decision-making as well as financial management
- Avoid penalties by fulfilling the compliance requirements stipulated by the Inland Revenue Board of Malaysia (IRBM)
- Adhere to IRBM’s taxonomy by filing the financial statements in proper formats
- Choose from among a range of options for your services including a full outsourced solution, interim support, short-term cover, month-end support, or specific technical resource to assist on complex accounting matters
- Know your bookkeeping cost well in advance
Contact Our Malaysia Team
Head of Corporate Secretarial & Financial Advisory
Lim Pei Hau
Head of Accounting & Business Advisory