In June 2022, HASIL made a media statement in which they detected a total of 23,751 entities (individuals or business enterprises) that did not report income to HASIL. This caused direct tax leakage estimated to be worth more than RM600 million.
Before we share enterprise business tax tips, you need to know that an enterprise is not a company. Enterprise is an SSM business license or business registration where the tax rate paid is the same as the personal income tax rate.
Enterprise Tax Tips – Not difficult but not easy
For enterprise businesses what is important for tax is:
- Your business is already 12 months old.
Businesses that have been operating for 12 months must declare with the IRB.
- Register income tax number
The OG code is for individuals who run businesses as sole proprietors. How to get this number? Attend the LHDN branch and register. Register once for E-Filling to send tax forms online.
- Account.
The owner is ‘obliged’ to send a profit and loss report as well as an assessment tax calculation to the IRB. All documentation must be kept for at least 7 years. Create files and records. These financial reports do not need to be audited. If you make a profit, pay tax, if you lose, you don’t have to pay tax. It’s not difficult, but it won’t be easy if there are no account records and documentation is a mess. It’s okay to hire an accountant like Malaysia Tax Specialist (pakarcukai.com.my). The important thing is to keep all purchase receipts, record all cash expenses and separate receipts by month. The IRB will conduct an audit every 4 years.
- Form B
This is a form that needs to be filled out to be sent to the IRB. If you are also a zakat payer it doesn’t mean you don’t have to pay tax. Will only be given relief. Then the tax payable may be reduced.
- Print & save the payment slip.
Make sure after completing the payment. Payment slips should be printed and kept on file. This makes it easier for you if HASIL wants to audit your business.
In addition to the enterprise tax tips above:
- Make sure to save your bank statement or business bank statement every month, not once a year. Print and save in a special file.
- Record and keep receipts of sales, purchases and expenses. This is separated in a special file.
- All assets such as computers, desks, chairs, etc. purchased for business use are recorded.
- Zakat payer? All zakat payment receipts must also be kept on file.
- Do you want it easy? Just hire a Tax Expert to do it. Simplify the work of the accounts and tax department of your business.
In summary, if you look at all the enterprise tax tips that we share, it can be concluded that business accounts are very important in preparing to send form B to HASIL.
All documents must also be complete, otherwise penalties will be imposed. To facilitate your work as a business owner, tax matters can be managed to pakarcukai.com.my. We can help in many matters in terms of advisory services and also manage your business account. Want to know more? You can follow or contact our representative for enterprise tax tips.