• Malaysia Tax Services & Tax Agents

Have you ever found taxation complicated and tough? Well, the following article will provide you an overview about professional taxation services in Malaysia and benefits of having a professional tax agent.

Types of Tax Professionals

Tax agents are financial experts who specialises in tax laws and accounting as well as any finance-related consultation. There are generally 4 types of tax preparers namely:

  • Certified Public Accountants (CPA)
  • Enrolled agents
  • Tax attorneys
  • Non-credentialed preparers
NOTE: Tax advisors / tax consultants are different from an accountant or a financial advisor. An accountant can be trained to be a certified tax consultant however, taxation may not always be their main source of study.

Financial advisors usually face customers directly and are aware of their financial shortcomings, hence they have the responsibilities to advise clients to do tax planning and be tax compliant. On the other hand, tax consultants are usually updated on the changes by the government authorities and how to interpret the latest changes.

What Does a Tax Agent Do?

A tax agent is the go-to person for useful tax related advices, up-to-date tax requirements, in-depth understanding on all tax deductions that you are entitled to claim, tax compliance requirements and actions and above all, tax planning.

Many tax agents are adept at tax compliance but not tax planning. Tax planning involves more forward thinking, planning, forecasting and analytic which leans more towards the finance consultant responsibilities.

How Much Do Malaysia Taxation Services Cost?

The cost for taxation service is highly dependent on the type of income tax return forms, example; One business person, under employment, as well as the complexity of the case.

The beginning fees would range from RM350 to RM 1500 excluding bookkeeping fees and this is usually for individuals with salary as their only source of revenue. If there is an additional income from rental or businesses, the fees will increase. For individuals being taxed solely from employment, engaging a tax consultant might not be necessary as the tax registration and filing process is fairly simple.

However, if the individual also owns a business or receive rental income, the case becomes more complex and possibly justifies hiring a professional tax agent!

Corporate Tax checker

Benefits of using Malaysia Tax Agents

For those who have a complex tax structure, especially for businesses in Malaysia, there are plenty of benefits of engaging tax agents. Here are some of the reasons why:

  • Provides useful tax-related advice, guidance on the scope of tax and expenses that are available for tax deduction, specific deduction, and double deduction, which are applicable to business owners who fill in Form B and P.
  • Helps with tax compliance and planning and keeps you up to date with the latest tax requirements and interpret any changes.

  • Hassle-free solution if individual has no interest in computing tax or have minimal understanding of the tax system in Malaysia (to link to tax system in MY article).

  • Opportunity to gain maximum benefit from tax allowances and incentives which you may overlook without the help of professional services.

  • Avoiding trouble with tax planning and prevents heavy penalties for issues such as tax mistakes and timeliness.

When Should You Consider Using a Tax Agent?

The next question is – when should you consider engaging a tax agent? The answer is simple – when things get complicated, it is always wise to have a professional who is able to guide you through.

Some of the situations include:

  • Erroneous Past Tax Returns

    A tax agent can offer professional advice and work with you to file for an amended return and help minimise the damage previously caused as well as the next best steps to take.

    A qualified tax agent will also give you a peace of mind knowing that your previous errors or any errors for the matter can be avoided and your returns will be handled by a professional expert for the coming year.

  • New Business Start-up

    Hiring a tax agent for a business may turn out to be a smart business investment in the long run. It will save you a lot of time and hassle for you to concentrate on your business while you leave the tax matters to the professional.

TIP: No matter how small the business is, it is crucial that you start off right from the very beginning as how you file your taxes in the first year can impact your future tax filings.
  • Inheritance

    Currently, Malaysia does not have any form of death tax, estate duty or inheritance tax. There was an estate duty in place until it was abolished on 1 November 1991. This means that, in Malaysia, there is no final tax on the accumulated wealth of a deceased person.

    However, should you find yourself inheriting an amount of money, it is best to consult with a professional before filing your tax returns as it is important that the executors file appropriate tax return to declare the deceased’s estate. These details may be unfamiliar to you and a tax agent can ensure that you inherit the estate hassle-free.

  • Change in Marital Status

    Whether newly married or recently divorced, a tax professional can advise the best way to move forward. Generally, divorced couples are advised to file separately so that one does not have to be liable for the other should there be unpaid taxes. A tax agent can also see to it that alimony if any, has either been paid or received properly.

  • Time Constraint

    Filing tax returns can be time-consuming and aggravating especially when yours is not a simple case of merely deducting tax relief off your chargeable income. A tax agent will be able to ensure that your taxes are done accurately through much quicker and effective work allowing you to make better use of your time, and possibly help you gain tax incentives.

  • Lack of Knowledge

    If you have a lack of knowledge regarding taxation in Malaysia, you may be susceptible to making mistakes which may result in high penalties. Tax agents can help to you figure our sales tax rules and avoid common mistakes like unintentional tax evasion, which is a tax crime.

Need assistance on taxation matters? Reach out to us for a free consultation, and we’ll be happy to discuss how we can be your trusted tax agent!

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FAQs

What are the types of tax professionals available? 2021-06-07T21:12:02+08:00

Generally, there are 4 types of tax preparers:

  • A Certified Public Accountant (CPA)
    A person who is licensed to offer accounting services to the public. Some CPAs specialise in tax planning and preparation and are allowed to represent clients on any tax matters.
  • Enrolled Agents
    A person trained in federal tax matters and is licensed by the Internal Revenue Board and are allowed to represent clients on any tax matters.
  • Tax Attorney
    A person licensed by the state to practice law and are allowed to represent clients on any tax matters.
  • Non-credentialed Tax Preparers
    A person who prepares taxes without any professional credentials or certifications from an external organisation.
What happens if you accidentally or unknowingly committed an offence on your tax returns?2021-04-05T10:02:34+08:00

Amendments can be made to a submitted tax return form depending on when the amendments are/ can be submitted:

Submitting amendment before tax deadline: Submit a letter detailing the mistake(s) made with supporting documents (receipts, invoices, statement, etc) to the responsible branch that handles your tax file.

Submitting amendment within 6 months from tax deadline: Make a self-amendment by submitting an Amended Return Form (ARF) to the responsible branch that handles your tax file. Only taxpayers who submitted their tax returns on time can make a self-amendment.

What are the key dates relevant to the filing of personal tax? 2021-04-05T10:02:01+08:00

No later than the last day of February the following year: Delivery of Form EA by employers to employees.

By 30 April the following year: Deadline for filing of Forms BE, BT, M, MT by the person not carrying a business (employees). 

By 30 June the following year: Deadline for filing of Form B by the person carrying a business e.g. sole proprietor. 

By 30 June the following year: Deadline for filing of Form P by a partnership excluding limited liability partnerships (LLPs) 

How high are the penalties leading from tax mistakes?2021-04-05T09:57:48+08:00

It is extremely crucial that tax returns be done properly, accurately, timely and with careful consideration. If errors are detected, the Inland Revenue Board may impose fines of up to 200% of uncharged tax. Late submissions may result in fines of up to 45% of payable tax.

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