Understanding Withholding Tax in Malaysia for Foreign Business
3 minutesIn the dynamic world of business, statutory compliance represents a crucial cornerstone, ensuring companies operate within the legal frameworks established by governing bodies. This comprehensive exploration delves into the essence of statutory compliance, highlighting its importance in maintaining the legal and financial health of businesses. By understanding and adhering to various statutory requirements, companies can navigate the complexities of the business environment more effectively, fostering sustainability and growth.
Malaysia Audit Exemption: The Impact on Local Businesses
4 minutes
The Malaysian government is reviewing the criteria for audit exemptions, a move deemed to significantly impact local businesses. This proposed review aims to streamline compliance processes and reduce costs for smaller entities. Under the current framework, companies can qualify for audit exemption based on three main criteria: dormancy, zero revenue, and meeting specific thresholds for assets, revenue, and employees. Dormant companies, which have no significant transactions, and zero-revenue companies, which have not generated income during the financial year, are prime candidates. Additionally, small companies that meet the thresholds set by the Companies Commission of Malaysia (SSM) are also eligible. Despite the exemption, these companies must still submit their financial accounts to the SSM, ensuring transparency and regulatory oversight remain intact. In this article, we will unfold the key elements behind the Malaysian audit exemption.
