Foreign and local companies should appoint a tax representative in Malaysia before starting their activities. The respective specialist can take care of registration for VAT payment, plus other responsibilities. In the lines below you can find out what a fiscal representative is and how it can be useful to you, specifying that you can opt for the services of our local agents when you want to open a company in Malaysia.
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How can a tax representative help you in Malaysia?
If you want to set up a company in Malaysia, you should consider all the required formalities. Although not mandatory, a tax representative in Malaysia is recommended. He or she has various responsibilities, including the registration of the company for the payment of VAT in Malaysia, also known as Sales and Service Tax (SST). Here are some of the responsibilities of a fiscal representative in Malaysia:
- He/she deals with the preparation of documents for registration for VAT purposes in Malaysia.
- A tax representative can represent a company from a tax point of view.
- Collaborates with the local authorities in Malaysia and informs them of any tax changes made in the company.
- It ensures that the company is compliant with all tax rules, mainly VAT.
- Tax filing and payment formalities linked to VAT enter the attention of a fiscal representative in Malaysia.
- Tax planning and advising are other responsibilities of a tax representative in Malaysia.
- Represents the company in the case of controls imposed by the tax authorities in Malaysia.
These are some of the tasks that come to the attention of a fiscal representative in Malaysia. If you want to set up a business in Malaysia and you need such a specialist, do not hesitate to contact us.
VAT in Malaysia
Companies with annual turnover exceeding RM 500,000 must be registered for VAT payment. A tax representative in Malaysia who knows the legislation and formalities in this regard can help you here. Here is some information about VAT in Malaysia:
- The standard VAT rate in Malaysia is 6%
- The same 6% VAT rate applies to digital products and services sold in Malaysia.
- A 5% VAT rate applies to basic foodstuffs, construction materials, petroleum oils, IT & telecommunication, etc.
- There is no VAT for real estate transactions in Malaysia.
- Registration for VAT can be done in 24 hours, with prior approvals.
- Once the documents are accepted, a 15-digit VAT code is issued.
- VAT or SST in Malaysia is a consumption tax on goods and services.
Are there VAT exemptions in Malaysia?
Yes, some certain services and products are not subject to VAT. For example, this tax is not imposed for the sale and rental of real estate properties, public transport, land for agricultural purposes, or specific financial services. Also, VAT is not paid for certain categories of jewelry, natural mineral substances, magazines, books, periodicals, etc. We advise you to contact our specialists and learn more about VAT if interested in company formation in Malaysia.
In addition to the services of our fiscal representative in Malaysia, you can also opt for others. For example, if you want to start a business in Malaysia, we advise you to contact us for assistance. You can also request the services of our accountants in Malaysia. Our CPA in Malaysia will be at your disposal with full services. Contact us to learn more about company incorporation in Malaysia.