Meeting Local Director Requirements in Malaysia When incorporating a private limited company (“Sdn Bhd”) in Malaysia, the Companies Act 2016 (“the Act”) requires that at least one director must be ordinarily resident in Malaysia. While this requirement is quite straightforward for Malaysian entrepreneurs, it may present a challenge for foreign investors establish a Company in… Continue reading Understanding the Role and Benefits of a Nominee Director in Malaysia
Category: Legal
No More Confusion: Payment to Deceased Agent is No Longer Subject to 2% Withholding Tax
When an agent, distributor, or dealer passes away, businesses often wonder: Do we still need to withhold tax on payments made to them? The good news is things have become much simpler now. What Changed? Starting from 1 August 2025, under Section 107D of the Income Tax Act, payments made to a deceased individual (EPP… Continue reading No More Confusion: Payment to Deceased Agent is No Longer Subject to 2% Withholding Tax
Starting October: Foreign Employees Must Contribute to EPF
The Malaysian government has announced a major change: starting from October 2025, all foreign employees with valid work permits (except domestic helpers) are required to contribute to the Employees Provident Fund (EPF). Here’s quick breakdown of what you need to know. Who Does This Apply To? Contribution Rate Registration Process When Can Employers Stop Contributing?… Continue reading Starting October: Foreign Employees Must Contribute to EPF
MSIC Code in Malaysia: How to Check Yours Easily
MSIC stands for Malaysia Standard Industrial Classification. It’s a 5-digit code used to classify different types of businesses in Malaysia. The code is issued by the Department of Statistics Malaysia (DOSM). Think of it as your business’s official “category tag”—— it tells the government and relevant authorities what kind of activities your company is involved… Continue reading MSIC Code in Malaysia: How to Check Yours Easily
📢 [UPDATE] 15 September 2025 Declared Additional Public Holiday — Is It Compulsory & How to Pay Your Staff?
Malaysian government has officially declared Monday, 15 September 2025 as an additional public holiday in conjunction with Malaysia Day, which falls on Tuesday, 16 September 2025. This means Malaysians can enjoy a 4-day long weekend from Saturday (13 Sept) to Tuesday (16 Sept). But as an employer, you might be wondering — is this new… Continue reading 📢 [UPDATE] 15 September 2025 Declared Additional Public Holiday — Is It Compulsory & How to Pay Your Staff?
Boss forgot to affix stamp duty and don’t want a penalty? Here’s a 5-minute “appeal letter” to get 100% waiver!
Under the Stamp Duty Act 1949, an employment contract must be stamped within 30 days of signing. Otherwise, the business may be fined RM 50 – 100 or 10 – 20% of the unpaid duty——whichever is higher. Good news: It’s not mandatory to pay the penalty! If you have a reasonable explanation, you can write… Continue reading Boss forgot to affix stamp duty and don’t want a penalty? Here’s a 5-minute “appeal letter” to get 100% waiver!
🧾Company Closure in Malaysia: Strike-Off vs Voluntary Winding-Up — What’s the Difference?
If you’re considering closing your Sdn. Bhd., it’s important to understand the two legal exit options under the Companies Act 2016 — Strike-Off and Voluntary Winding-Up. Here’s a quick comparison table to help you decide: ✅ Quick Comparison Table Item STRIKE-OFF VOLUNTARY WINDING UP Legal Provision s.550 CA 2016 s.439(1)(b) CA 2016 Resolution Needed ✅… Continue reading 🧾Company Closure in Malaysia: Strike-Off vs Voluntary Winding-Up — What’s the Difference?
When to Claim Tax Agent & Statutory Filing Fees: Avoid Common Mistakes in YA 2024
As we approach tax season, many business owners and finance teams ask: “Can we deduct tax agent and statutory filing fees in the current year of assessment?” Let’s clear up the confusion. Tax Deduction Rule: “Incurred Basis” Applies Under Malaysian tax law, expenses are only deductible when they are incurred — not when they relate… Continue reading When to Claim Tax Agent & Statutory Filing Fees: Avoid Common Mistakes in YA 2024
Understanding Tax Treatment for Specialist Doctors in Private Hospitals-IRBM Guidelines
The Inland Revenue Board of Malaysia (IRBM) has issued specific guidance on how income earned by Specialist Doctors in private hospitals should be taxed. According to the IRBM Guidelines dated 16 March 2022, titled “Garis Panduan Layanan Cukai Ke Atas Pendapatan Pengamal Perubatan (Doktor Pakar) Di Hospital Swasta Sama Ada Ditaksir Di Bawah Individu Atau… Continue reading Understanding Tax Treatment for Specialist Doctors in Private Hospitals-IRBM Guidelines
Understanding Tax Penalties in Malaysia: A Comprehensive Guide
In Malaysia, the Inland Revenue Board (LHDN) enforces strict tax compliance to ensure the integrity of the national tax system. Non-compliance with tax obligations can lead to significant penalties, including fines, imprisonment, or both. This guide outlines the various tax offences and corresponding penalties to help taxpayers stay informed and compliant. 1. Failure to Furnish… Continue reading Understanding Tax Penalties in Malaysia: A Comprehensive Guide