The Advantages Of Incometax Filing Services In Malaysia

 

With income tax filing services you can get professional guidance, it’s that time of year again when tax records land in our mailboxes, and advertisements for tax software litter our email inboxes and social media feeds.

If you’re wondering whether you should do your taxes or hire a tax professional, the answer is, it depends on your situation. Usually, the more complicated your return, the better off you’ll be going with a specialist.

In Malaysia, there are different types of taxes such as Personal Income Tax, Corporate Income Tax, Sales and Service Tax, Customs Duty, Local Tax, and Goods and Services Tax (GST). While taxes are involuntary fees, there are numerous advantages following the implementation of taxes. Some of the advantages are funding government investment, funding for the nation’s development, and distribution of wealth among citizens.

Firstly, taxes received by the government can be used to fund the government’s expenditures to run the country. The expenses include paying the salary of government servants to give services to the citizen. Some of these services are like medical service (doctors, nurses, and pharmacies), army, police, firefighters, judges, as well as professors like teachers and school administration. On top of the salary, the taxes also pay for the operational expense of running hospitals, schools, federal roads, government offices, etc. including paying for the country’s monarchs and politicians to run the federal governments.

As income tax can be important for your income, it is quite natural to think about the advantages of income tax and filing returns for the taxpayers. If you are wondering the same, here are some advantages of income tax filing services you should know about-

Address proof

One of the important advantages of income tax is that the tax assessment documents work as address proof. There are various documents such as passport, visa application, license, etc. You are required to present address proofs. Standard proofs like ID cards are usually not valid for such documents. Your income tax documents can be used in such cases.

Nation-building

Taxes is one of the key sources of income for the government, the money collected in the ex-chequer is used for building infrastructure and other development activities. The government spends the collected money on defense, healthcare, infrastructure, education, and launching several schemes for the masses.

High-value investment

High-value investments like buying a property are reported to the IT department. When you pay taxes and file returns, these transactions can be recorded and substantiated as per your income. As you can see, there are many advantages of income tax filing and paying income tax. Play your role in nation-building and experience all the other advantages listed above by knowing your tax liabilities and paying them on time.

Anyone can prepare their own return. Some people prefer to handle income tax filing on their own no matter how challenging their tax situation gets. But just because you can doesn’t mean you should. The tax professionals may be able to prepare your return in a fraction of the time you would take to prepare it yourself. The experts might reveal deductions, credits, or other tax strategies you aren’t aware of that could significantly reduce your tax bill.

Bispoint Group gives complete business and financial resolutions for small & medium-sized enterprises in Malaysia (SMEs). We offer a full range of services, including company registration, accounting, income tax filing services, SST compliance, and financial due diligence. With expertise, our team of highly skilled professionals offers swift implementation of solutions. Currently, we have more than 70 dedicated teams including Chartered Accountants, managers, supervisors, and junior associates in our offices to serve more than 1000 private companies.​​

 

The Procedures For a New Company Incorporation in Malaysia

 

New company incorporation in Malaysia and opening of its corporate bank account are straightforward methods, which can be co pleated in five weeks. Our client will not have to travel anywhere, provided that a Power of Attorney is issued to the Malaysia incorporation agent who will then complete all procedures on his behalf.

Company formation in Malaysia

Foreign investors seeking to do business in Malaysia are allowed to set up any of the following entities-

1. Private Limited Company (Malaysian- Sendirian Berhad or Sdn Bhd)

2. Foreign Company

For formation and incorporation, a company in Malaysia can establish a Private Limited Company (Sdn Bhd). This authorized entity requires a minimum of one shareholder and at least one resident director. Stockholders are solely responsible for the extent of their contribution to the capital. An Sdn Bhd can only have a maximum of 50 shareholders and its company shares are not liable to the public.

Foreign investors who own existing businesses abroad and want to build a local branch in Malaysia for local services or back-office purposes can set up a Foreign Company. This kind of entity doesn’t require a resident director.

Requirements for setting up a company in Malaysia

Proposed company name

Foreign individuals must reserve a company name with the corporate registry, the Companies Commission of Malaysia (SSM), to register a business. They are advised to prepare at least three alternative company names in case their first option is already taken or denied due to several reasons such as the proposed name is already reserved, offensive contains restricted words, or closely resembles a registered company name/s.

Shareholder/s

At least one shareholder is needed for Sdn Bhd. Shareholders can be a body corporate or an individual. Sdn Bhd can only have a maximum of 50 shareholders. The Malaysia Companies Act of 2016 allows sole individuals to register an Sdn Bhd. They can be the just shareholder and directors of the company.

Director/s

For Sdn Bhd, at least one resident director is needed. Such an individual must not be a disqualified director under the Companies Act (i.e., under 18 years old, bankrupt, or convicted of any offense).

Corporate secretary

Those seeking to incorporate an Sdn Bhd must designate a Corporate Secretary within 30 days of incorporation. To be qualified to consider the role, the Corporate Secretary must have a primary place of residence in Malaysia and requires to either be licensed by the SSM or be a member of a professional association appointed by the Ministry of Domestic Trade and Consumer Affairs.

What to do after company incorporation in Malaysia?

After successfully incorporating a company, the business owner must apply for necessary business permits or licenses before starting services. The particular documents required may vary depending on the nature of business activities, industry, and/or business location. Additionally, business owners are obliged to open a corporate bank account and designate auditors from a list approved by the SSM. They are also required to make yearly reports to SSM. The Companies Act requires yearly returns to be made within 30 days of the anniversary of incorporation.

There are also additional corporate compliance necessities associated with income tax, Sales and Services Tax (SST), Employees Provident Fund (EPF), social security, and many others.