25.01.2018
In application with Section 267 (2) of the Company Act 2016 (“CA 2016”), the local Registrar namely Suruhanjaya Syarikat Malaysia (SSM) set forth an audit exemption applicable to certain qualifying private companies. Indeed, in its Practice Directive (PD) No. 3/2017, dormant, zero-revenue and threshold-qualified private companies are eligible to elect for audit exemption if the companies fulfil certain criteria and conditions as set out in the PD. Despite the SSM’s initiative, the IRB has refused to follow the initiative and has no intention on amending Section 77A (4) of the Income Tax Act 1967 (“ITA 1967”). Although CA 2016 gives exemption to certain private companies from submitting audited accounts to SSM, the requirement of submitting a tax return based on audited accounts therefore remains in force under the ITA 1967. The IRB expects of all companies, including those which would otherwise be eligible for audit exemption under the CA 2016, to submit a tax return based on audited accounts.
On 27 October 2017, Malaysia’s Prime Minister and Minister of Finance, YAB Dato’ Sri Mohd Najib Tun Haji Abdul Razak, delivered his annual budget speech; the last one before the next General Election which must be held not later than 24 August 2018.
In application with Section 267 (2) of the Company Act 2016 (“CA 2016”), the local Registrar namely Suruhanjaya Syarikat Malaysia (SSM) set forth an audit exemption applicable to certain qualifying private companies. Indeed, in its Practice Directive (PD) No. 3/2017, dormant, zero-revenue and threshold-qualified private companies are eligible to elect for audit exemption if the companies fulfil certain criteria and conditions as set out in the PD.
Despite the SSM’s initiative, the IRB has refused to follow the initiative and has no intention on amending Section 77A (4) of the Income Tax Act 1967 (“ITA 1967”).
Although CA 2016 gives exemption to certain private companies from submitting audited accounts to SSM, the requirement of submitting a tax return based on audited accounts therefore remains in force under the ITA 1967. The IRB expects of all companies, including those which would otherwise be eligible for audit exemption under the CA 2016, to submit a tax return based on audited accounts.
 | Pascal Brinkmann, LL.M. (Stellenbosch) |
 | Caroline Pelaez |
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