Crucial Deadlines for Income Tax and Statutory Compliance Every Sdn Bhd in Malaysia Must Know

Published: 9 Sep 2024

Running a business comes with numerous responsibilities, and staying compliant with statutory and tax obligations is paramount. For Sdn Bhd (Sendirian Berhad) companies in Malaysia, understanding and adhering to these deadlines is essential to avoid hefty penalties, fines, and potential legal issues. Business owners must be vigilant about these requirements to ensure smooth operations and maintain their company's good standing with regulatory authorities. Here's a comprehensive guide to the critical deadlines every Sdn Bhd in Malaysia must be aware of.

Statutory Compliance Deadlines for a Sdn Bhd

No.	Requirement	Deadline	Example	Penalty for Non-compliance
1	Preparation of Financial Statements	Within 18 months of incorporation and subsequently, 6 months of financial year end	A company incorporated on January 1, 2023, must prepare its financial statements by June 30, 2024.	RM5,000 to RM500,000 fine or imprisonment for up to 3 years or both.
2	Circulation of Financial Statements	Within 6 months of financial year end	A company with a financial year ending on December 31 must circulate its financial statements by June 30.	RM5,000 to RM500,000 fine or imprisonment for up to 3 years or both.
3	Lodgment of Financial Statements and Reports with SSM	Within 30 days from the date of circulation of financial statements and reports	A company circulating its financial statements on June 30 must lodge them with SSM by July 30.	RM5,000 to RM500,000 fine or imprisonment for up to 3 years or both.
4	Changes of particulars of director, manager, and secretary	Within 14 days from the date of change	If a company appoints a new director on January 1, the changes must be updated by January 15.	RM5,000 to RM50,000 fine or imprisonment for up to 3 years or both.
5	Changes to business address and/or nature of business	Within 14 days from the date of change	If a company changes its business address on January 1, it must notify the changes by January 15.	Similar penalties as above.
6	Changes related to shares, debentures, participatory interest, rights, options, and contracts	Within 14 days from the date of change	If a company issues new shares on January 1, it must report the changes by January 15.	Similar penalties as above.

Employer Compliance Deadlines

No.	Requirement	Deadline	Example	Penalty for Non-compliance
1	Register with the Employee Provident Fund (EPF) Board	Within 7 days of employment of the first employee in the company	A company hiring its first employee on January 1 must register with EPF by January 8.	RM10,000 fine or imprisonment for up to 3 years or both.
2	Register with the Social Security Organisation (SOCSO)	Within 30 days of the date on which the Employees Social Security Act (ESSA) becomes applicable to the company	A company becoming subject to ESSA on January 1 must register with SOCSO by January 31.	RM10,000 fine or imprisonment for up to 2 years or both.
3	Register Company’s Employee Tax File (E number) with Inland Revenue Board (IRB)	Any time before payment of salaries to employees	A company must register its employees' tax files before disbursing their first salaries. However, generally, Company’s E number will be automatically assigned when Company has been incorporated.

Corporate Taxpayer Deadlines

No.	Category	Form	Deadline	Example	Penalty for Non-compliance
1	Submission of Estimate of Tax Payable	CP 204	30 days before the beginning of the basis period	A company with a basis period starting on January 1 must submit CP 204 latest by December 1 of the previous year.	A fine between RM200 and RM20,000 or imprisonment for up to 6 months or both.
2	Submission of Revised Estimate of Tax Payable	CP 204A	In the 6th and/or 9th month, and/or 11th month of the basis period (w.e.f YA 2024)	A company revising its estimate in the 6th/9th/11th month must submit CP 204A by June/Sept/Nov 30.	N/A
3	Submission of Income Tax Return	e-C	Within 7 months from the date following the close of its accounting period	A company with an accounting period ending on December 31 must submit e-C by July 31 of the following year.	A fine between RM200 and RM20,000 or imprisonment for up to 6 months or both.
4	Furnishing of Particulars of Payment to ADD	CP 58	By 31 March of the following year	Payments made to agents, dealers, or distributors in 2023 must be reported using CP 58 by March 31, 2024.	RM200 to RM20,000 fine or imprisonment for up to 6 months or both.

Best Practices to Adhere to Compliance Deadlines

To ensure compliance with statutory and tax deadlines, Sdn Bhd companies should implement the following best practices:

1. Maintain Accurate Records: Keep detailed and up-to-date financial records, including all transactions, receipts, and payments. Accurate record-keeping simplifies the preparation of financial statements and tax filings.
2. Use Accounting Software: Invest in reliable accounting software that can automate many aspects of your financial management, such as tracking income and expenses, generating financial statements, and reminding you of upcoming deadlines.
3. Hire Professional Help: Engage a qualified accountant or tax advisor to help navigate the complexities of statutory compliance and tax filing. Professionals can provide expert guidance and ensure that all filings are accurate and timely.
4. Set Up a Compliance Calendar: Create a calendar that highlights all key compliance deadlines. This visual aid helps in planning ahead and avoiding last-minute rushes.
5. Regular Reviews: Conduct regular reviews of your financial status and compliance obligations. Monthly or quarterly reviews can help you stay on top of your financial health and upcoming deadlines.
6. Stay Informed: Keep up-to-date with changes in tax laws and statutory requirements. This can be done by subscribing to relevant newsletters, attending seminars, or consulting with your accountant regularly.
7. Prepare in Advance: Start preparing your financial statements and tax returns well in advance of the deadlines. This reduces the risk of errors and ensures ample time for review and correction.
8. Implement Internal Controls: Establish robust internal controls to prevent errors and fraud. Internal controls ensure the integrity of your financial records and compliance with statutory requirements.
9. Training and Awareness: Train your staff on the importance of compliance and the specific deadlines they need to be aware of. Ensuring everyone in your organization understands these requirements can improve adherence to deadlines.

By following these best practices, Sdn Bhd companies can better manage their statutory and tax obligations, ensuring timely compliance and minimizing the risk of penalties.

YYC offers comprehensive services to help your business stay compliant with all statutory and tax deadlines. Our team of experienced professionals can assist with everything from bookkeeping and financial statement preparation to tax filing and advisory services. With YYC, you can focus on growing your business while we take care of your compliance needs. Contact us today to learn more about how we can support your business.

** We have a dedicated team of staff providing quick response and excellent customer service. Feel free to contact us to find out more.