The Self Assessment System (“SAS”) of taxation in Malaysia has created challenges for companies in the area of tax compliance.
Under SAS, the burden of responsibility has shifted from Malaysian Inland Revenue Board (“MIRB”) to the taxpayer.
This responsibility brings with it:
- Increased risks of tax penalties;
- The need to estimate the taxable position of companies in advance, the need to monitor the tax position during the financial year with the view to making the appropriate revisions to avoid penalties for underestimation; and
- The need to ascertain whether the accounting systems within companies are able to meet the higher demands of the SAS.
The onus is on the company to compute its tax liability correctly and pay the correct amount of tax on time. In this respect, the company has to keep abreast of tax developments.
Under the SAS, the MIRB is placing more emphasis on audits carried out by its officers to ensure voluntary tax compliance by taxpayers.
KPMG’s Tax Compliance professionals are ready to assist our clients in complying with their tax obligations. Download the brochure to view our broad range of services.