Running a company in Malaysia involves more than just managing day-to-day operations. It also means staying compliant with various legal obligations, including meeting crucial deadlines with government agencies such as the Companies Commission of Malaysia (SSM), the Inland Revenue Board (LHDN), and others. Failing to meet these deadlines can result in penalties, fines, or even the suspension of your company. Here’s a breakdown of the key deadlines for companies in Malaysia, and what you need to know to stay on track.
1. Annual Return Filing with SSM
Deadline: Within 30 days of the anniversary of your company’s incorporation date.
All companies incorporated in Malaysia must file an annual return with the Companies Commission of Malaysia (SSM). This document serves as a summary of general information about the company, such as the company’s business address, directors, shareholders, and share capital. Missing this deadline can lead to hefty fines, so it’s crucial to ensure you submit on time.
What to Prepare:
• Updated company information (directors, shareholders, etc.)
• Latest financial statements or audited accounts
• Details of company shares and capital structure
2. Filing of Financial Statements
Deadline: Within 6 months from the financial year-end.
All companies are required to prepare and submit their financial statements to SSM. These financial statements include the company’s balance sheet, income statement, and cash flow statement, audited by a qualified auditor (if applicable). You must file this document within six months from the end of your company’s financial year.
Pro Tip: Align your accounting and reporting systems well before the end of your financial year to ensure smooth auditing and filing processes.
3. Filing Corporate Income Tax Returns (Form C) with LHDN
Deadline: 7 months from the financial year-end.
All Malaysian companies are required to submit their corporate tax returns to the Inland Revenue Board (LHDN) using Form C. This return is a detailed report of your company’s taxable income and tax liabilities. Keep in mind that this must be submitted within seven months from the close of your financial year.
What to Prepare:
• Audited financial statements
• Tax computation documents
• Payment receipts for any advance tax payments (if applicable)
4. Payment of Estimated Tax (CP204)
Deadline: 30 days before the start of your company’s financial year.
In addition to filing your tax returns, companies are required to submit an estimate of their tax payable for the upcoming year, using Form CP204. This estimate should be submitted at least 30 days before the start of the financial year, and the tax payable is typically split into monthly installments.
Reminder: Failure to submit this estimate on time or underestimating your tax by more than 30% can result in fines and additional tax liabilities.
5. Employer EPF, SOCSO, and EIS Contributions
Deadline: By the 15th of each month.
If your company employs staff, you are required to make monthly contributions to the Employees Provident Fund (EPF), the Social Security Organization (SOCSO), and Employment Insurance System (EIS). These contributions must be made by the 15th of every month, based on your employees’ salaries for the previous month.
Tip: Many companies set up auto-payments or reminders to ensure they don’t miss these recurring deadlines.
6. GST / Sales & Service Tax (SST) Filing
Deadline: Every two months, depending on your SST cycle.
If your company is registered for the Sales and Service Tax (SST), you are required to submit your SST returns every two months. This applies to businesses providing taxable goods and services. Filing is typically due by the last day of the following month after your taxable period ends.
What to Prepare:
• Monthly sales records
• Tax invoices
• Proof of SST payments
7. Annual General Meeting (AGM)
Deadline: Within 6 months from the financial year-end.
While private companies are no longer required to hold an Annual General Meeting (AGM) under the Companies Act 2016, public companies still must hold an AGM within six months after the financial year-end. At the AGM, shareholders review the company’s financial performance and decide on key matters such as director appointments or dividends.
Stay Compliant to Avoid Penalties
Missing any of these deadlines can result in serious consequences, including fines, penalties, and potential suspension of your company’s operations. To avoid this, many businesses hire a company secretary or a professional firm to help manage their compliance. A company secretary ensures that your company remains in good standing by filing necessary documents and adhering to important deadlines.
How a Company Secretarial Firm Can Help
If you’re unsure about any of these deadlines or how to comply with them, a company secretarial firm can take the stress off your shoulders. From filing annual returns with SSM to ensuring timely corporate tax submissions with LHDN, a professional firm helps you navigate these legal obligations smoothly, ensuring you stay compliant and penalty-free.
Conclusion:
Managing key deadlines is critical to running a successful business in Malaysia. From annual return filings to corporate tax submissions, staying on top of these dates ensures your company remains compliant with Malaysian regulations. Consider working with a company secretarial firm to handle these deadlines efficiently and minimize the risk of incurring penalties.
By staying informed and organized, you can focus more on growing your business and less on compliance headaches!
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