Preparing For 2019 Malaysian Tax Season

2019 is upon us and everyone is surely out there celebrating but when we all do come back to work, there is one big thing that happens every year that everyone might dread. That is – tax season. Doing your taxes has always been a hassle and even more so if you are responsible for a company’s taxes. 

In this article, we list down the few things you need to do to ensure that you are going to be ready for the 2019 Malaysian tax season. 

Before we even get started, the next tax day in Malaysia is around the end of April 2019. So make sure you mark your calendars for that before you forget. 

Income Tax Filing Guides

With the new government, a lot of information is still not confirmed yet but the picture below showcases what the income tax rates are for the past years and for 2018. 

Image Credits

You can use this to roughly understand where you stand and also to plan for your personal filing in April. 

So How Do You Prepare For Company Tax Season? 

If you are part of the team that will need to help with tax filing. We have a few pointers for you before you head into tax season. 

Firstly, you need to speak to your managers or the people in charge that you will need to start preparing for tax season soon. It should be one of the main KPIs you have if you are in charge of the company taxes. The bigger the company, the more work is involved. 

Corporate Income Tax Rates 

The Current Income Tax Rates in Malaysia is explored below 

* For years of assessment 2017 and 2018, CIT is reduced based on the incremental chargeable income for companies, limited liability partnerships, trust bodies, executor of estate of an individual domiciled outside Malaysia at the time of death, and receiver appointed by the court. The rates as follows are applicable:

* For years of assessment 2017 and 2018, CIT is reduced based on the incremental chargeable income for companies, limited liability partnerships, trust bodies, executor of estate of an individual domiciled outside Malaysia at the time of death, and receiver appointed by the court. The rates as follows are applicable:

% of increase in chargeable income compared to immediate preceding year of assessment% point reductionIncome tax rate applicable for incremental portion of chargeable income (%)
Less than 5.00Nil24
5.00 to 9.99123
10.00 to 14.99222
15.00 to 19.99321
20.00 and above420

What’s Next? 

Once you’ve taken note of all the numbers above, you need to start planning and collecting all the documentation and paperwork required to successfully file the taxes for the company. 

Usually most companies will have corporate secretaries or accountants to help them ease this process. If your company has them, you should also engage with them to help with the process. 

Using The MBRS Tool 

With the addition of the MBRS tool by SSM, it is now much easier to file your taxes because you will be required to submit your financial reports and annual returns with the tool. This way it will be much easier to consolidate and gather the information needed for the Income Tax Revenue Board of Malaysia. 

MBRS will soon become a mandatory tool that must be used by every registered business.

To ensure that your team is ready for this amazing upgrade, please make sure that they attend these workshops to get certified today. All the necessary data about using and maximising the Malaysian Business Reporting System are right at your fingertips. Choose the right training provider and get exclusive MBRS tutoring.

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