Many of our clients like to ask about compliance for the private limited company (Sdn. Bhd.). Private limited companies (Sdn. Bhd.) required more compliance on governance within various government authorities compared to sole proprietorship and partnership. Hence, this article shows the compliance you need to fulfil monthly and yearly.
Monthly Compliance for the Private Limited Company (Sdn. Bhd.)
Corporate Tax Payment
You will pay company tax in monthly instalments based on the expected tax payable. You can do it yourself or hire an accountant or tax consultant to help you. This payment shall be done by the 15th of each month starting from the 6th month of the assessment year.
EPF, SOCSO, and EIS Payment
In addition to registering and updating your employees’ information with EPF and SOCSO, your company which acts as an employer must collect EPF, SOCSO, and EIS contributions from both employer and employee portions and submit them to EPF and SOCSO, respectively. You can perform this on your own via EPF and SOCSO’s several online and offline channels, or you can hire a payroll service provider. This payment needs to be made by the 15th of the month for the salary issued for the previous month.
Employees’ Payroll Tax (PCB) Payment
PCB is known as Potongan Cukai Bulanan. As an employer, you must retain a portion of an employee’s income, such as salary, commission, bonus, and incentives, to be paid to Lembaga Hasil Dalam Negeri (LHDN) as a Monthly Tax Deduction (MTD) on behalf of employees who are taxable as part of the employer’s responsibility. The PCB is computed based on the MTD schedule or the Computerised Calculation Method on the e-CP39 platform. You can perform this on your own or you can hire an accountant or tax agent. You are required to pay before the 15th of each month for the remuneration issued for the last month.Â
Yearly Compliance for Private Limited Company (Sdn. Bhd.)
Business License Renewal
Business owners should be aware of the expiry date of the license.Â
Submission of Tax Estimates
The estimated tax due will be determined by using your company’s expected annual income. Based on this projected tax payable, your company will make monthly instalments. You can do this on your own or hire an accountant or tax agent to do it for you. This should be done within 3 months of operation and 30 days before the start of each assessment year.Â
Submission of Statements Regarding PCB
As an employer, you must file Form E to LHDN. Form E is a statement that states the employees’ and yearly deducted PCB. Furthermore, the statement of remuneration paid to employees during the year, Form EA/ (C.P. 8A), must be issued to employees by the last day of February the following year to allow employees to prepare their tax returns. You can do it yourself or hire an accountant or payroll service provider to help you. The last date for submission is 31st March of every year.Â
Financial Statements with Directors’ Report Lodgement
Accountants usually prepare year-end financial statements and pass accounts to the assigned auditor. On the other hand, the auditor will prepare an auditor’s report while the directors will prepare the director’s report which explains information on the directors, main activities of the company, shares, dividends, business reviews, etc. The commissioner for oaths then compiles and signs these documents before passing them to the company secretary for distribution to shareholders and the auditor.
Next, your company secretary will lodge the audited financial statements and directors’ reports to the SSM. The deadline for circulation to shareholders is within 6 months after the final year end. Meanwhile, the final date for lodgement of audited financial statements is within 30 days after the circulation.
Annual Return Lodgement
The annual return includes information such as the nature of your business, registration address, directors and shareholders, and so on. Every firm is required to submit an annual return even if there were no modifications to your business information every year.Â
On the anniversary of the firm’s incorporation date, your company secretary will complete the annual return and submit it to the SSM. The filing deadline is within 30 days from the anniversary of the company incorporation date
Submission of Tax Return
It’s possible that the estimated tax payable and the actual tax payable aren’t the same. If the actual tax due is higher than the estimated taxes paid, the firm needs to pay the balance of tax payable. In contrast, you could seek a refund if your real tax due is less than the taxes paid. You can do this on your own or hire an accountant or tax advisor to help you. Lastly, the last date of submission is within 7 months after the assessment year ends.
Every industry has different compliance requirements. If you need clarification for compliance for the private limited company (Sdn. Bhd.), you should seek advice from your company secretary or accountants for more information.Â