Question 1

What bookkeeping records must a company keep in Malaysia?

Accepted Answer

Under Section 245 of the Companies Act 2016, companies must maintain accounting and other records that sufficiently explain their transactions and financial position and enable proper financial statements to be prepared. Companies should generally make appropriate entries within 60 days of completing the relevant transaction, and they must retain the records for seven years.

Question 2

Can a Malaysian company use spreadsheets or manual bookkeeping?

Accepted Answer

Yes. Malaysian law does not require companies to use a specific accounting or cloud bookkeeping system. However, businesses must still maintain complete and accurate records, make timely accounting entries and comply with SSM and LHDN requirements. As transaction volumes grow, manual processes can increase the risk of errors, duplicate entries and reconciliation issues.

Question 3

When must a Malaysian company file its annual return with SSM?

Accepted Answer

A company incorporated in Malaysia must generally lodge its annual return with SSM within 30 days of the anniversary of its incorporation under Section 68 of the Companies Act 2016. Foreign companies registered in Malaysia are subject to separate annual return requirements under Section 576.

Question 4

Are businesses with annual revenue below RM3 million exempt from e-Invoice in Malaysia?

Accepted Answer

From 1 September 2026, taxpayers with annual income or annual sales below RM3 million are generally exempt from mandatory e-Invoice implementation. However, the exemption is subject to additional conditions. A Malaysian entity may still fall outside the exemption where certain shareholder, holding-company, related-company or joint-venture conditions are met.

Question 5

How do Malaysia's e-Invoice rules apply to foreign-owned subsidiaries?

Accepted Answer

Foreign ownership itself does not automatically determine whether a Malaysian company must implement e-Invoice. A Malaysian subsidiary with annual income or sales below RM3 million may nevertheless fall outside the exemption if its holding company, non-individual shareholder, related company or joint venture meets the relevant conditions under HASiL's e-Invoice guidelines. Businesses should therefore assess both the Malaysian entity and its wider group structure.

Question 6

How long must accounting and tax records be kept in Malaysia?

Accepted Answer

Under the Companies Act 2016, companies must generally retain accounting records for seven years after the relevant transactions or operations are completed. Malaysian tax legislation also requires record retention for supporting tax documentation. Businesses should maintain organised records that can support SSM filings, tax returns, e-Invoice transactions and regulatory reviews.

Business Guides in Malaysia

Bookkeeping Compliance in Malaysia: How SSM and LHDN Filing Rules Now Interact

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