Running a business in Malaysia involves fulfilling annual compliance requirements to ensure compliance with the Companies Act 2016, tax regulations, and statutory obligations. Failure to meet these requirements can lead to penalties, fines, or even the deregistration of the company.
This guide covers key statutory filings, tax submissions, audit requirements, and regulatory obligations that companies must adhere to in Malaysia.
At Amaze Advisory, we provide compliance support, corporate secretarial services, and tax advisory to ensure your business stays compliant and penalty-free.
1. Overview of Annual Compliance in Malaysia
All companies registered in Malaysia (including Sdn. Bhd. (Private Limited Companies) and foreign companies) must meet specific regulatory, tax, and reporting obligations annually.
Key Regulatory Bodies:
- Companies Commission of Malaysia (SSM):
Oversees company registration, annual returns, and corporate governance. - Inland Revenue Board of Malaysia (LHDN):
Manages corporate tax, employer tax, and withholding tax compliance. - Royal Malaysian Customs Department (RMCD):
Oversees Sales and Service Tax (SST), import/export duties, and excise duties. - Employees Provident Fund (EPF), SOCSO, EIS and HRDF:
Manages employer and employee contributions for statutory deductions.
2. Key Annual Compliance Requirements for Companies
(A) Annual Return Filing with SSM
- Deadline: Within 30 days from the anniversary of incorporation.
Companies must submit an Annual Return to SSM, updating key details such as:
- Registered office address
- Beneficial Owners, directors and shareholders’ details
- Company secretary information
- Paid-up capital and shareholding structure
Amaze Advisory ensures accurate and timely annual return filings with SSM to avoid penalties.
(B) Audited Financial Statements & Submission to SSM
- Deadline: Within 6 months after the financial year-end.
- All private limited companies (Sdn. Bhd.) must prepare and file audited financial statements unless exempted.
- The audited report must be approved by the board of directors before submission.
Amaze Advisory can assist in financial statement preparation and connect you with licensed auditors for statutory audits for compliance with Malaysian Financial Reporting Standards (MFRS)/Malaysian Private Entities Reporting Standard (MPERS).
(C) Corporate Tax Filing with LHDN
- Form C Deadline: 7 months from the financial year-end.
- Companies must file annual tax returns (Form C) and settle corporate income tax liabilities.
- Estimated Tax Payments (CP204):
- Required for companies with chargeable income exceeding RM20,000.
- First CP204 must be submitted within 3 months from the start of the financial year.
Amaze Advisory provides tax computation, filing, and tax-saving strategies for businesses.
(D) Employer Tax Filings & Employee Contribution Compliance
- Monthly PCB (Pay-As-You-Earn Tax) payments
Due by the 15th of the following month. - EPF (Employees Provident Fund):
Contribution rate depends on salary; due by the 15th of the following month. - SOCSO & EIS contributions:
Employer contributions must be submitted monthly; due by the 15th of the following month. - Form E Submission (Employer Tax Return):
Due by 31st March annually. - Form EA (Employee Salary Statement):
Must be issued to employees by end of February each year.
Amaze Advisory offers payroll outsourcing services to ensure seamless employer tax compliance.
(E) Sales & Service Tax (SST) Compliance
- Filing Frequency: Bi-monthly (every 2 months).
- Businesses registered for SST must file SST-02 returns and remit Sales or Service Tax to RMCD.
- Digital service providers (DSPs) must charge 8% Digital Service Tax (DST) if their annual revenue exceeds RM500,000.
Amaze Advisory assists in SST registration, tax filing, and compliance.
(F) Business Licenses & Renewal Compliance
Depending on the industry, companies may need to renew business licenses annually, including:
- Trading & Import/Export Licenses
- Sector-Specific Approvals (e.g., Manufacturing, Financial, or Education Licenses)
- Halal Certification (for food businesses and restaurants)
Amaze Advisory helps businesses obtain and renew necessary business licenses.
(G) Other Regulatory Requirements
- Beneficial Ownership (BO) Reporting:
Companies must maintain an updated BO register and submit information to SSM. - Transfer Pricing Documentation:
Required for multinational businesses engaging in cross-border transactions. - Foreign Exchange (FX) Compliance:
Reporting obligations for foreign-owned companies under Bank Negara Malaysia (BNM).
Amaze Advisory ensures compliance with additional regulatory requirements for foreign businesses in Malaysia.
3. Penalties for Non-Compliance
Failure to meet compliance requirements can result in fines, penalties, and legal consequences:
| Non-Compliance Issue | Penalty/Fine |
|---|---|
| Late submission of Annual Return | RM50–RM500 late filing penalty |
| Failure to submit financial statements | RM5,000–RM50,000 fine |
| Late or non-submission of Corporate Tax Returns (Form C) | Penalty up to 45% of unpaid tax |
| Failure to pay Withholding Tax (WHT) | Additional 10% penalty on unpaid tax |
| Late submission of SST returns | 10%-15% of the amount not paid |
| Non-compliance with Employer Tax (PCB, EPF, SOCSO, EIS) | Additional fines and legal action |
Amaze Advisory helps businesses avoid penalties and stay compliant with all annual filing obligations.
4. Summary of Annual Compliance Requirements
| Compliance Requirement | Deadline | Regulatory Body |
|---|---|---|
| Annual Return (SSM Filing) | Within 30 days from incorporation anniversary | SSM |
| Audited Financial Statements | 6 months after financial year-end | SSM |
| Corporate Tax Filing (Form C) | 7 months after financial year-end | LDHN |
| Estimated Tax Payment (CP204) | Within 3 months from financial year start | LDHN |
| Employer Tax (Form E & EA Statements) | 31st March (Form E), February (EA Statements) | LDHN |
| Monthly Payroll Tax (PCB) & EPF/SOCSO/EIS | 15th of each month | LDHN, EPF, SOCSO |
| SST Returns (if applicable) | Every 2 months | RMCD |
| Business License Renewals | Annually (varies by sector) | Respective Authorities |
| Beneficial Ownership (BO) Reporting | Ongoing updates | SSM |
| Transfer Pricing Documentation | Annually (if applicable) | LDHN |
5. How Amaze Advisory Can Help Your Business Stay Compliant
Ensuring compliance can be complex, but Amaze Advisory offers expert corporate secretarial, tax advisory, and regulatory compliance services to help businesses meet their obligations.
At Amaze Advisory, we provide end-to-end business setup solutions, including:
- Company Incorporation, Company Secretary and Nominee Services
- Accounting & Financial Advisory
- Tax & Advisory
- Payroll Outsourcing
- Employer of Record (EOR)
- Immigration & Global Mobility
Get Started with Amaze Advisory Today!
Phone: +6013-284 7678 / +6013-323 7678
Website: www.amazeadvisory.com
