What is SST Rate in Malaysia?

Following are the SST Malaysia rates applicable to different goods and services

Who Pays SST in Malaysia?

The local or international businesses performing their activities in Malaysia are bound to pay SST if they exceed a specific annual income threshold. At present, this threshold is set at a figure of RM500,000.

Businesses already registered with the GST don’t need to register again for the sales and services tax. This is so, as their data will be transferred to create the SST Malaysia registration. The overall process of registration is simple as it is an online procedure.

If you are confused about how and where these tax rules will be applied, don’t worry! We, as a top accounting firm, can provide you best taxation advisory services for GST and SST in Malaysia.

What does SST stand for?

SST is an abbreviated term for “Sales and Services Tax”, which is a new tax collection system introduced in Malaysia. It’s a single-stage tax that is levied on all types of taxable goods being manufactured and sold within the country.

If the products or goods are taxable, SST is levied on them irrespective of the fact that whether Malaysian registered manufacturer has manufactured these goods or they have been imported.

However, there are various products or goods, exempted from sales, and service tax. These goods are listed in the “Sales Tax Exemption Order”.

The Companies Act 1965

The Companies Act 1965 was the pioneer law ascertained to govern starting and running a company in Malaysia. Although the law has been replaced with Companies Act 2016 yet there are various key updates that streamline the statutory compliance a company is required to follow. These regulations are only restricted to companies that are registered after the Companies Act 2016 came into force. These are some examples of compliance a company is no longer obliged to follow:

Common seal

A common seal is a melted wax impression or an indentation on any official document that holds the document officially executed. According to the Companies Act 2016, 2 signatures authorized persons are required out of which one should be the director for the execution of documents.

If in case, the company has only one director, signatures of the director and one witness are permissible. Henceforth, newly registered companies no longer need a common seal.

Memorandum and Articles of Association (M&A)

In the former years, M&A was established in the constitution to govern a company including responsibilities of directors, allotment of shares, etc. Today, The Companies Act 2016 can be utilized as a constitution per se without any need to ascertain a separate M&A unless the company requires more rules and regulations for smooth functioning.

AGMs are organised every year between the directors and shareholders of a company to evaluate the company’s performance as well as plan business strategies for the coming year. However, holding an AGM every year is no longer mandatory for private limited companies in Malaysia. The directors and shareholders of the company are given rights to sign a circular resolution without organising an in-person meeting.

Annual General Meeting (AGM)

Submission of Tax Payable Estimations

Corporate tax is one of the company tax payable estimations in Malaysia that is needed to be submitted within 3 months of operation for a new company. For companies with capital of less than 2,000,000 Malaysian Ringgit, the estimation of tax payable is not required to be submitted for the first 2 assessment years. In such a case, the company is only required to file the corporate tax within 7 months after the end of the assessment year.

Sales and Service Taxes (SST)

If your company offers taxable goods or services to customers, you might want to know when you can start collecting Sales and Service Taxes (SST) from the customers. Your business needs to register for SST if your annual sale value exceeds 500,000 Malaysian Ringgit in twelve months.

If you are confused about how SST will be applied, don’t worry! We, as the best audit firm in Malaysia, can provide you the most comprehensive taxation advisory services for SST in Malaysia.

Audited Financial Statement

Every year, the company secretary files the annual returns and financial statements of your company to the SSM. However, you are free to put forward an unaudited financial statement if your company belongs to one of these three categories:

Dormant companies

It includes the companies that have had no transaction since their inception.

Companies with zero revenue

It incorporates companies with zero revenue for the current as well as past two financial years adding up to a total asset of less than 300,000 Malaysian Ringgit.

Threshold-qualified companies

It includes companies with less than 100,000 Malaysian Ringgit revenue with total assets adding up to less than 300,000 Malaysian Ringgit along with less than 5 employees for the current and past 2 financial years.

A company secretary Malaysia is best suited for the job. They can offer advice in regard to laws and regulations of running a company. These experts can also get you in touch with a pertinent professional for other required services. For further readings, check out this guide on all you need to know about company secretary Malaysia. 

That said, do not let statutory compliance of your company come in the way of growing your business operations. It is best to appoint an experienced company secretary to assist you readily in making well-informed decisions with statutory compliance.

Efficient

By looking for redistribute bookkeeping administrations, you can spare a ton of time. Which means consequently, you can use such time in other beneficial exercises to help your business. For example, you can zero in on center business exercises, which would assist you with producing more income.

Moreover, deciding on extraordinary compared to other re-appropriate bookkeeping administrations likewise mitigates yourself from the problem of keeping up back-end bookkeeping. It would help you to bring down the pressure related with keeping up your business accounts. Then again, you can improve the effectiveness and profitability of your business by using redistribute bookkeeping administrations Malaysia.

Equipped and Reliable Services

At the point when you re-appropriate representing private company or an enormous substance, you can make certain of the best record or examining administrations. The profoundly talented and experienced staff would take great consideration of bookkeeping errands. Regardless of whether you have to record the assessment forms or need somebody to deal with your accounting errands, you can take the help of the re-appropriating bookkeeping administrations in Malaysia.

Moderate and Cost-powerful

There is a wide exhibit of organizations, which battle to keep up their free records office. This is along these lines, as it requires the business to hold up under weighty costs regarding compensations of expert bookkeepers.

In actuality, in the event that you have decided to pick re-appropriate bookkeeping administrations, you can set aside a great deal of cash. For example, you are not needed to employ the bookkeeping staff for your organization. In this manner, you don’t have to stress over the costs connected with staff pay, execution rewards, health advantages, or protection costs.

Greatest Convenience

By and large, redistribute bookkeeping administrations Malaysia fill in as an all in one resource. This recommends you can benefit of a wide range of administrations related with the bookkeeping and inspecting needs of your organization. For example, these re-appropriated bookkeeping arrangements can deal with an assortment of issues like duty, bookkeeping, inspecting, warning, and comparative other fund related administrations.

Guarantees the Best Possible Outcomes

By using the administrations offered by an outsourced accounting firm, you can make certain of the most ideal results. The certified and experienced bookkeepers/evaluators expertly play out their administrations. Thus, every one of your announcements and bookkeeping records will remain fit as a fiddle. Additionally, the nature of work done by these specialists likewise satisfies the budgetary revealing principles of Malaysia.

Assists with developing your Business

These arrangements likewise offer money related guidance to the business. It causes such organizations to develop by considering the guidance of master experts. By understanding the diverse budgetary regions, you can extend your business inside the less foreseen time.

Opening expense has been in the news for some time because of the oversupply of properties, which are profoundly evaluated and left unsold because of unacceptability. Manufacturers who needed higher overall revenues assembled these properties, and now the Malaysian government is to force opening assessment on such developers for unsold properties. An opportunity charge is forced as the punishment dependent on the level of gross selling on the properties that are left empty and are unsold for a particular measure of time.

Dr. Carmelo Ferlito, CEO at Center for Market Education, and a senior at Institute for Democracy and Economic Affairs, accepts that the up and coming activities may get disheartened on the burden of an opening duty on engineers. He expressed that the burden of opportunity expense would be an infringement of property rights. The designers and individual proprietors ought to be given the freedom to discard their properties.

Ferlito further noticed that an opportunity expense would set a dangerous model of managerial deduction. It pictures the administration’s entitlement to intrude with the removal of a property when the cycle of removal isn’t going toward a path that is “socially” attractive. He included that the oversupply of unsold properties is a dynamic of the market cycle that returns through business variances.

He further included, such a move will debilitate future activities as one would fear wrong ventures and dissuade pioneering activities that could be generally effective.

Appointee Federal Territories Minister Datuk Seri Edmund Santhara Kumar expressed, the administration will examine the suggestion of forcing opening duty on designers to address the issue of unsold extravagance apartment suite units in the Klang Valley.

There were 2,260 unsold apartment suite units inside the Klang Valley as per The National Property Information Center, out of these unsold townhouses 498 extravagance units were worth in any event RM1m as of the second quarter of 2018.

CBRE Group Inc and CH Williams Talhar and Wong Sdn Bhd MD Foo Gee Jen expressed an opening duty which is normally joined by a theory charge is to control the exorbitant costs and is restricted to private property. He further included an opening duty is typically focused in “nonattendance proprietorship.” This nonappearance possession generally applies to unfamiliar purchasers in a particular nearby market.

He stated, in Malaysia, under the Local Government Act, the empty property appreciates a discount for evaluation; rather, covering charges. Notwithstanding, Foo noticed that an opening expense would hamper future activities in Malaysia. It is a counterproductive move in when the nation needs more unfamiliar speculation.

Knight Frank Malaysia Sdn Bhd MD Sarkunan Subramaniam said that the motivation behind monumental opportunity assessment is guarantee that proprietors don’t keep their properties empty for high-overall revenues. Rather, they lease it out on lower rents.

He said the recommendation of an opportunity assessment would be deadly to the property markets as the proprietors should decrease the lease in a market where properties are now oversupplied. He further included, it is difficult to screen empty properties for the burden right now.

Talking about the secretary of a Malaysian company, this particular role holds a key position in creating as well as operating a company in Malaysia. According to the Companies Act 1965 (section 139A of), it’s obligatory for a company to hire a qualified company secretary.

What is the Qualification of Company Secretary?

• A person having any of the below qualifications is eligible for becoming a company secretary. 
• A Chartered Secretary registered with MAICSA (Malaysian Institute of Chartered Secretaries and Administrators)
• A Chartered Accountant who is registered with the MIA (Malaysian Institute of Accountants) 
• A Licensed Secretary who is licensed by Company Commission of Malaysia 
• A Lawyer registered with Malaysian Bar

What are the Roles and Responsibilities of a Company Secretary?

• A company operating in Malaysia employs the company secretary (Co-Sec). Such a role involves a variety of responsibilities. 
• Some of these roles include:
• A company secretary needs to comply with advisory and statutory requirements 
• Attend meetings and prepare resolutions of both board and members
• Keep the company’s statutory books and records in an up-to-date condition
• Maintaining regular communication with the shareholders

1. Compliance with statutory requirements and advisory

The corporate secretary must ensure that all the operations of a company are within the ambit of the Companies Act 1965. He/she should update the SSM with any change in the statutory information of the company.  

For this purpose, the secretary must submit the completely filled forms that are prescribed by the law. These forms should reach the company’s registrar within a given period. Moreover, the secretary must advise the director/s regarding annual meeting of the company.

2. Attend meetings and prepare resolutions of both the board and members

The secretary must take part in almost every board meeting.  Furthermore, corporate secretarial services malaysia also include advising the director/s on secretarial matters. 

In addition, the secretary is also required to send notices and circulars and stay in contact with shareholders when taking care of the company’s matters. 

One of the most essential company secretarial services is the filing of annual returns. This task needs to be completed within a given deadline.

Some of the most prominent responsibilities of a company secretary associated with board meetings are listed below:

• Booking a meeting room and making some other preparations 
• Liaising with the managing director or chairman regarding agenda papers 
• Take down the minutes of the meeting and enter them into minute books
• Clearly inform the company executives regarding the decisions made in a board meeting
• To make sure that the meeting is carried out in accordance with a prescribed method

3. Keep the company’s statutory books and records in an up-to-date condition 

If any change happens within the structure of a company, the secretary is responsible for updating the statutory registers of such a company. For instance, the secretary is bound to maintain the Register of Members and Register of Directors. 

Such a person is also responsible for keeping the important company documents at a safe and secure place. These documents include “Certificate of Incorporation”, “Share Certificates”, “Memorandum and Article of Associations” and “Minutes of the meeting”.

4. Maintaining regular communication with the shareholders

The corporate secretary must maintain consistent communication with the director/s. The secretary also issues notifications and documents associated with the monitoring of a company’s operations.  

The company secretary serves as a bridge between the company and shareholder/s. Therefore, all the key announcements should be communicated to the executives via secretary. 

PURPOSE

These guidelines explain the imposition of penalties on

taxpayers who are late or fail to submit a return form in

the period prescribed under the Income Tax Act 1967 (ACP 1967),

Petroleum (Income Tax) Act 1967 (APCP 1967) and Tax Act

Real Estate Gains 1976 (ACKHT 1976).

BORANG NYATA DI BAWAH ACP 1967

Seksyen 77A ACP 1967

BORANG NYATA DI BAWAH APCP 1967

BORANG NYATA DI BAWAH ACKHT 1976

KADAR PENALTI LEWAT MENGEMUKAKAN BORANG NYATA

PENALTI DI BAWAH SUBSEKSYEN 51(3) APCP 1967

PENALTI DI BAWAH SUBSEKSYEN 29(3) ACKHT 1976

KADAR PENALTI BAGI KEGAGALAN MENGEMUKAKAN BORANG NYATA

1. Who is eligible? 

All taxpayers (individual/ cooperative/ other business/ non business entities) who rent out business premises to qualified SMEs tenants;

The rented premises must be used by the SME tenant for business purpose;

Landlord must be taxpayer who is receiving rental income under Subsection 4 (a) and 4 (d) of Income Tax Act 1967.

2. When is the eligible period? 

From April 2020 until 30 September 2020.

3. What is the minimum rental reduction for landlord to enjoy this special deduction?

The rental reduction must be at least 30% from the current monthly rental rate.

4. Is the landlord eligible if he reduces the rent at different rate each month but all rate exceeds 30%?

Yes, as long as the reduction rates are not less than 30% in each of the eligible months.
If in any of these eligible months, the rental reduction is less than 30%, then the company is not eligible to claim the special deduction for that particular month/months.

5. What is the special deduction amount? 

The amount of special deduction is equivalent to the amount of monthly rental reduction offered by landlord to eligible SMEs tenants.

6. Definition of SMEs

The definition of SME for this purpose follows the National SME definition.
For more information, please click here to refer to the SME Definition Guideline

SMEs that are eligible for this special tax deduction are registered SMEs and have obtained SME Status Certificate from SME Corp. Malaysia

Any queries regarding eligibility or registration as an SME can be directed to SME Corp at SME Corp Malaysia at 1300-30-6000 or email to info@smecorp.gov.my

7. Who is not considered as SMEs?

Public listed entities on the main board

Subsidiaries of:
✔ Publicly listed companies on the main board
✔ Multinational corporations (MNCs)
✔ Government linked companies (GLCs)
✔ Syarikat Menteri Kewangan Diperbadankan (MKDs)
✔ State owned enterprises

8. Is a company qualified for this deduction if rents out premise to related company? 

The company (landlord) is eligible for this special deduction if the related company (tenant) qualifies as SME.

9. What is meant by business premises for this special deduction?

All premises used for business purpose (i.e office/workshop/ childcare/ warehouse/ rented lot/ bazaar/ booth /stall).

Residential house used for both residential and business is NOT qualified for this special deduction.

10. Is this special deduction applicable for rental of machines/ parking spaces/ telecommunication towers? 

No. This special deduction is only applicable to rental of business premises used for business purpose only.

11. The landlord has received rental payment for April until June 2020 earlier this year.
    Can the landlord offers rental reduction and claim special deduction?

Yes. Landlord who has received rental payment in advance is still allow to offer rental reduction as long as all conditions are fulfilled.

12. What are the required supporting documents?

Taxpayer (landlord) who claims this special deduction is required to keep the following documents:

i. Stamped tenancy agreement;

ii. Rental income statement;

iii. SME Status Certificate issued by SME Corp.*;
*Information regarding registration of SME can be referred at https://smereg.smecorp.gov.my

iv. Tenant’s information, rental information and rental reduction methods**
**To be provided in working sheet (HK) of Company Return Form, please refer to the example attached as below:

13. Illustration:

A Sdn Bhd rents a shop lot to B which is an eligible SME for RM5,000 a month (RM60,000 yearly).
A Sdn Bhd has agreed to offer rental reduction to B for the month of April 2020 to September 2020, of RM2,500 a month.

What is Invoice Financing?

Invoice financing is a way for companies to borrow money, with respect to the money due to its customers. It allows businesses to use unpaid invoices as a collateral to get short-term loans.

For a better understanding, say that you sell a product to your customer. Now, the customer tells you that they will only be able to pay you after some months.

Invoice financing is when you take the funds that the customer owes you from a third party, and pay the third party back when the customer gives you the money. In some cases, you can connect the debtor (customer) to the loaner.

Who Offers Invoice Financing?

Registered third parties, including banks, financial houses, and Malaysia accounting services may offer invoice financing.

Why is Invoice Financing in Malaysia Growing?

Well, there are many benefits of invoice financing. We list some of them:

Better Cash Flow

Companies need money to operate. They need to invest in capital, pay their employees, do promotion, and run other processes that require finances. With invoice financing, firms can easily cover the expenses and make use of new opportunities as soon as they are available. They no longer need to wait for customers to pay them.

A Better Customer Service

Customer service is another important aspect where invoice financing helps. In some cases, there may also be ‘trends’ or ‘standards’ in an industry, where customers are used to being given specific terms to pay their amounts.

Waiting for a lot of time to receive payments may affect a small business’ growth. This basically means without invoice financing, you may have to compel your customers to pay fast, which may give a negative message to them.

On the other hand, if you go for financing, you will not have to call your customers frequently. As long as you are sure they will pay, you can mind your own business, which is going to make everyone happy.

It is Easy to Set Up the Financing

Invoice financing isn’t connected to a lot of risks, so fund providers aren’t that picky about their clients. Most likely, there wouldn’t be a lot of requirements. If you are a genuine business and don’t have any ill-intents, you should get the financing without any troubles. Having good records in the past is going to help, of course.

Furthermore, setting up financing doesn’t take a lot of time. After setting up the financing, and getting an invoice, most of the money is released within 24 hours. In other words, invoice financing brings you short-term, low risk, and very fast funds.

No Hassle

Like what’s said above, you can start receiving funds as soon as you set up your accounting. Adding on to that, there isn’t a complicated process for securing the funds.

You don’t need a lot of assets. In most cases, the only collateral you’ll need is the invoice itself. This makes invoice financing in Malaysia an excellent choice for growing SMEs that don’t own a lot of things but still are finding a good number of customers.

Decide the Business Type

If you are a local entrepreneur, the registration of business Malaysia can be done as a Sole Proprietor, Limited Liability Partnership (LLP), or General Partnership. These are the common business entities available for registration of business Malaysia.

Choose a Business Name

Choosing a business name is crucial to have in mind when learning how to register new company Malaysia. In fact, one of the toughest steps in how to register new company Malaysia is choosing the perfect business name.  You can check with Suruhanjaya Syarikat Malaysia (SSM), the commission for registration of business Malaysia on their website. You can also get a local agency to make inquiries about how to register new company Malaysia.

Run a name check after you have handpicked the business name. You can complete the Request for Availability of Name (Form 13A of the CA) and submit to SSM. You need to pay a fee at RM30.00 for each name applied. After the name check, you can register the name with commission for registration of business Malaysia, SSM, to get approval. If your name is approved by Commission for registration of business Malaysia, SSM, it will be reserved for three months.

Scout for a Business Premise

A good business location is part of your marketing strategy. Therefore, it’s paramount to make adequate research, in order to pick the best location for your business. Not only is the country where your business located important, the actual town, area, street, and office number are important.

In Malaysia, every business must have a legally registered local office address. Some of the important points to consider when scouting for a location are:

• Convenience
• Ease of finding
• Traffic flow
• Logistics
• Transportation
• Parking
• Proximity to various other facilities and available amenities

Prepare the Incorporation Documents for Registration of Business Malaysia

You need to submit the Incorporation Documents to the commission for the registration of business Malaysia, SSM, within 3 months from the approval date of the company’s name. Failure to lodge your incorporation documents, you will need to apply for a new name search. Documents required by the agency for registration of business Malaysia include:

• Memorandum and Article of Association/Constitution
• Statutory Declaration by a Director or Promoter before Appointment
• Declaration of Compliance
• Company Name’s approval letter from SSM (one copy)
• Identity Card of every director and company secretary (one copy each)

A trademark is often referred to as the face of a brand or business. It may be a business name, heading, label, logo, device, signature word, letter, numeral or a combination of these items. It often distinguishes a particular company’s product or services from those of other companies.

This is like favoring your organization enlistment Malaysia through the commission for Malaysia organization joining, SSM. Here, you are likewise permitted to solely utilize your business name in authentic exchanges. Holding a brand name enrollment right permits you to solely utilize that mark for business increase, advancement, and marking of agreements.

The Docs Need for Registration of Business Trademark

Applications for organization enrollment Malaysia require the accommodation of fuse records. Additionally, applications for a brand name likewise require the accompanying records to be submitted:

• A duplicate of the proposed brand name in JPEG design

• A rundown of products or administrations which the imprint will cover

• Data about the candidate’s name, address and status

• Area of consolidation

• An official proclamation avowing that the candidate is the legitimate proprietor of the imprint and that the application has been made in accordance with some basic honesty must be appropriately marked with a Commissioner for Oaths.