All businesses in Malaysia are required to comply with the record keeping requirements in accordance with Malaysian laws and regulations. According to Section 82 of the Income Tax Act 1967, every person that carries on a business in Malaysia has the duty to keep proper documentations as well as give receipts. Whether you are new in the entrepreneurial world or a veteran business owner with years of experience in the industry, files have to be kept properly. You may engage a professional accounting services firm to systematically keep accounts for your business, especially with the implementation of the new Goods and Service Tax (GST) Act.

What Are The Record Keeping Requirements For Malaysian Companies?

All taxable persons are required to keep sufficient accounts affecting his liability for GST and income tax for 7 years. Such documentations must be in national language (Malay) or English. Moreover, the files are to be kept and retained in Malaysia unless the Director General approves otherwise. There are numerous documents required for safekeeping in compliance with the GST Act and the Income Tax Act.

Requirements Under The Income Tax Act

There are important things to know and understand about record retention and its effect on your liability under the Income Tax Act. For instance, any person who is obliged to keep record must also provide appropriate entries on those items specifically within 60 days after each transaction was made. Moreover, such information must be ready to view and access in electronic forms and should also be convertible into writing. The Income Tax Act also imply that proper record maintenance means the person in charge has originally kept the information in their manual or written forms. All files regarding businesses in Malaysia must also be kept and retained in the country.

Requirements Under The GST Act

Required documents for GST are as follows:

  • Details of imported goods.
  • Details of goods and services a person or business supplies or receives throughout the duration of the business operations.
  • Supporting documents of any kind such as price quotation and contracts that show the business’ or person’s liability to GST and income tax.

All required documentation could be in the form of:

  • Electronic format.
  • Physical or written books of accounts as well as paper-based source documents with the inclusion of computer printouts.
  • Details of accounting system which include codes of accounts, program and system documentation, charts, instruction and specification manuals.

These are very important requirements of document retention in Malaysia which must be complied with in order to avoid penalties and legal issues during a tax audit. Of course with the help of a reliable and registered accounting services firm, you will find less hassles and spend less time in maintaining the required documentations for your company.

Important Reminder

There are important things to know and understand about record keeping and its effect on your liability under the Income Tax Act and the GST Act. For instance, books that were kept and initially made in manual or written forms and are subsequently converted to electronic versions must basically have a retained copy of its original form. This is prior to the conversion of the information from manual to electronic. On the other hand, books that were created in electronically readable forms which you can view online must be readily accessible. Moreover, the electronic form must also be easily convertible to manual or written form.

Proper Filing For Audit Trail Can Be Tricky

For companies that require proper filing for audit trail, Accounting Services Hub is one of the recommended and trusted accounting firms in Malaysia. It does not matter whether you need record keeping solutions for a month of documentation or an annual account or an information database, Accounting Services Hub has a team of professionals who have experience and expertise in this field. Hiring a reputable accounting services firm is the best solution for all your recording and reporting concerns for hassle-free business operations.

Schedule an appointment with us for all your concerns and inquiries.

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