Accounting and Income Tax in Malaysia – Basic Understanding

Question 1 : Why do we need to do book-keeping and submit our company accounting and income tax in Malaysia?

Answer : Book-keeping helps us to manage our financial affairs for our business. Submitting income tax
confirms our business earnings and allow us to get financing in the future.


Question 2: I have been running my business for 3 years now but I have not submit any taxes. Can I still submit my taxes? What is the penalty?

Answer : Yes you can, but you are subject to penalty (fine) for late submissions for each of the financial year.


Question 3: Can I still submit my taxes after due date? What is the penalty?

Answer : Yes, you can. The penalty for late filing is 10% on the balance of unpaid taxes after tax deadline. If the income tax and penalty are not paid within 60 days, another penalty of 5% will be imposed on the amount owed.


Question 4: Where can I find income tax information about sole proprietor and partnership?

You can visit official website on Lembaga Hasil Dalam Negeri (LHDN) at http www.hasil.gov.my

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