Update 1: MBRS Filing of Financial Statements (FS)

Effective Date: 1 June 2025

Please be informed that, effective 1 June 2025, all companies incorporated under the Companies Act 2016 are required by the Companies Commission of Malaysia (SSM) to file their audited financial statements through the Malaysian Business Reporting System (MBRS).

Key Highlights:

• Hardcopy submissions will no longer be accepted by SSM at the counter.
• All submissions must be made using the XBRL-compliant ZIP file via MBRS.

How We Support You:

• Preparing MBRS-compliant ZIP (XBRL) files
• Tagging financial data using XBRL taxonomy and validating the file through mTool
• Liaising with your company secretary to ensure timely submission to SSM

This service is provided separately from our audit engagements and subject to a professional fee.

Contact Us to request a quotation or further details.

Update 2: Audit Exemption for Private Companies

The Companies Commission of Malaysia (SSM) has issued Practice Directive 10/2024, introducing updated audit exemption criteria for private limited companies effective for financial periods beginning on or after 1 January 2025.

A company qualifies if it meets any two (2) of the following three (3) criteria for the current and immediate past two financial years:

• Annual revenue not exceeding the stated threshold
• Total assets not exceeding the stated threshold
• Not more than the stated number of full-time employees

Please note that public companies, subsidiaries of public companies, foreign companies, and exempt private companies under Section 260 of the Companies Act 2016 are not eligible.

What Are Your Options?

Option 1: Continue with Statutory Audit

• Ensures credibility and confidence among stakeholders
• Often required for banking facilities, tenders, and regulatory submissions

Option 2: Apply for Audit Exemption

• Submit unaudited financial statements with required documents:
• Directors’ Report
• Statement by Directors
• Statutory Declaration
• Certificate confirming audit exemption eligibility

Our Support Services

• Compilation of unaudited financial statements (MPERS format)
• Limited review of financial records
• Basic cut-off testing on key accounts
• Review of bank balances and borrowings
• Fixed asset and depreciation review

Considerations

Advantages:

• Lower compliance costs
• Simplified administrative procedures
• Supportive of SME growth

Disadvantages:

• Reduced stakeholder assurance
• May affect loan or contract applications
• Full responsibility rests with directors for accuracy

If your company qualifies or you'd like to evaluate your eligibility, please get in touch with us. We are happy to assist.

Contact Us to assess your eligibility or to request assistance with exemption documentation.

Update 3: SSM Compound Reduction for 2025

The Companies Commission of Malaysia (SSM) has introduced compound reduction initiatives for 2025 aimed at improving compliance and easing the regulatory burden for inactive companies and LLPs.

General Compound Reduction

Entities penalised under the Companies Act 2016 or the Limited Liability Partnerships Act 2012 for common offences such as failure to lodge annual returns or submit financial statements may apply for a 90% reduction in compounds.

Voluntary Striking-Off (Section 550, CA 2016)

Companies that have ceased operations may be eligible for up to a 95% compound reduction when applying to strike their name off the register. This includes companies penalised for non-compliance such as failure to submit annual returns or financial statements.

📅 Deadline to apply: 30 September 2025

Update 4: Mandatory Submission via MITRS for YA 2025

Effective: Year of Assessment 2025

The Inland Revenue Board of Malaysia (LHDN) has mandated the use of the Malaysian Income Tax Reporting System (MITRS) for corporate taxpayers beginning from the Year of Assessment 2025, in accordance with Section 82B of the Income Tax Act 1967.

Who Must Comply:

• All Companies (Category C) and Limited Liability Partnerships (PT)
• Submission must be done within 30 days after the tax return filing due date

Documents to Submit via MITRS:

• Audited / Unaudited Financial Statements (PDF)
• Income Tax Computation
• Capital Allowance and Charges (Schedule 3) Computation
• Incentives Claimed (if applicable)

Consequences of Non-Compliance:

• Fine between RM200 to RM20,000
• Imprisonment up to 6 months or both (per Section 120(1)(d) ITA 1967)

How We Assist:

• Preparation and collation of required tax documents
• Review, conversion, and filing of documents via MITRS

Contact Us for more information or to request our MITRS submission service.