Taxation

Expert Corporate Tax Planning Services in Klang, Selangor & Malaysia

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Protecting Your Profits From Excessive Taxation

Taxation is an integral part of conducting business. If not handled properly in accordance with relevant laws and regulations, it may subject a company to huge legal and financial risks, such as hefty fines and criminal charges against the company directors. Even law-abiding businesses can experience significant financial losses from taxation if they are paying more than what is legally required.

We employ only certified tax agents to assist clients with striking the right balance when it comes to taxation. With our support, clients pay the minimum amount of tax required by law, which allows them to avoid legal jeopardy while conserving valuable financial resources that can be redirected to growth.

What We Cover for
Taxation Services in Malaysia

Comprehensive Tax Planning

We work closely with clients to develop and implement strategies for minimising their corporate tax obligations, from changing their business structure to taking advantage of new tax incentives. We pay attention to every detail as even small adjustments to business practices can lead to major tax savings.

Resolving Tax Disputes (After a Field Audit / Tax Investigation)

Despite their best efforts, many businesses inadvertently make mistakes when filing their taxes. If detected by the Internal Revenue Board (IRB) during a field audit or tax investigation, these mistakes can result in huge financial penalties for the company in question. To limit clients’ losses, we can negotiate a lower fine with the IRB on their behalf, in addition to helping them rectify the errors that triggered the penalties in the first place.

Providing Guidance on Transfer Pricing

Although legal in Malaysia, transfer pricing is strictly regulated by the IRB. Companies practicing transfer pricing may face allegations of tax fraud if they are deemed to have contravened the stipulations in Section 140A of the Income Tax Act 1967. Therefore, our clients depend on our expertise to reduce their tax burden and protect themselves from prosecution.

Applying for Advance Rulings

Prior to entering certain business arrangements, companies may need to request an advance ruling from the IRB to clarify how they will be taxed under a particular arrangement. We assist clients with the application process as well as observing the terms of the ruling.

Developing an Indirect Tax Collection and Remittance Framework

Other than paying direct taxes on corporate income, Malaysian businesses also bear responsibility for remitting indirect taxes (e.g. GST, SST, import duties) levied on sales of their products and services to the Royal Malaysian Customs Department. We design efficient indirect tax collection and remittance frameworks for clients and provide solutions to any issues that may arise.

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Why Should You Make Use of Our Tax Planning Services in Malaysia?

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Save Funds to Be Reinvested in Your Business

Contrary to popular belief, the benefits of tax planning are not limited to MNCs – in fact, many first-time clients that operate on a smaller scale were pleasantly surprised at how much they were able to save with some advance planning. Harness our experience to retain your hard-earned profits for the use of your company.
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Redirect Time and Manpower Towards More Productive Tasks

Tax planning, filing taxes, and dealing with the relevant government agencies are time-consuming tasks that require considerable manpower. Outsourcing these jobs to us allows your staff to focus on what they do best – bringing in more revenue and expanding your company’s sphere of influence.
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Limit Your Company’s Exposure to Legal Risks

Inconsistencies in company tax records may lead to tax evasion charges that can seriously damage a business’s reputation, even if these are proven to be unfounded after investigation. Let our qualified staff minimise these risks for you while you continue growing your business, worry-free.

Our Case Studies

#1:
Unfreezing Assets and Securing an
80% Discount on Tax Penalties

Before:

Client C’s personal and company bank accounts were frozen by the IRB after a tax investigation which revealed irregularities in their tax filings. The IRB also seized company-owned mobile phones and all related documentation.

With NKH Support:

Within a month of being engaged, we persuaded the IRB to unfreeze Client C’s accounts and return all confiscated items. We also managed to negotiate Client C’s RM7 million fine down to RM1.5 million, even convincing the IRB to offer Client C a flexible 36-month payment schedule in the process.

#2:
Updating and Extracting Useful Information
From 7 Years of Financial Records

Before:

Clients D and E (no relation to each other) received court orders instructing them to pay heavy fines to the IRB and the Companies Commission of Malaysia (SSM) following a field audit. They found it difficult to gather evidence of mitigating circumstances as they had neglected to maintain proper financial records for the last 7 years.

With NKH Support:

We were requested to update Clients D and E’s financial records for tax reporting purposes, which was no easy feat as the records covered financial transactions worth RM5 – 8 million each year. Nonetheless, we were able to complete the task in only 6 months. We then submitted an appeal against the court orders on their behalf, which resulted in their huge fines being reduced to the minimum amount permissible under the law.

Frequently Asked Questions - Corporate Tax Planning Services in Malaysia

What is corporate tax planning, and why is it important?

Corporate tax planning involves organizing your company’s finances to minimize tax liabilities while complying with tax laws. It’s essential for saving money, maximizing tax benefits, and ensuring your strategy aligns with business objectives. Need expert help? Contact NKH Chartered Accountants to enhance your corporate tax planning.

How can businesses reduce their taxable income?

Businesses can reduce taxable income through various methods such as deductions, credits, and strategic investments. For example, investing in capital assets or contributing to retirement plans can be beneficial. For personalized advice on lowering your taxable income, reach out to NKH Chartered Accountants.

What are the key tax incentives available for businesses?

Key tax incentives include credits for research and development, investment tax breaks, and deductions for charitable contributions. Knowing which incentives apply to your business can significantly reduce your tax liability. Find out what you’re missing—contact NKH Chartered Accountants to explore available incentives.

How often should a business review its corporate tax planning strategy?

It’s a good idea to review your corporate tax planning strategy at least once a year or more frequently if there are significant changes in your business or tax laws. Regular reviews ensure your strategy stays effective. Keep your tax plan up-to-date—schedule a review with NKH Chartered Accountants.

What documents are needed for corporate tax filing in Malaysia?

Businesses generally prepare financial statements, profit and loss reports, balance sheets, bank statements, payroll records, and relevant expense documents. NKH Chartered Accountants guides clients through the entire preparation process to ensure proper documentation and smooth submission. Contact our team if you need assistance organising your tax documents.

Can NKH Chartered Accountants assist during an LHDN tax query or tax review?

Yes. NKH supports businesses during LHDN queries, tax reviews, and information requests by ensuring proper documentation, clear communication, and timely submission of required records. Our team helps clients navigate the process confidently while maintaining compliance with Malaysian tax regulations.

Transfer pricing rules require related companies to price transactions fairly and in line with market standards. Failure to follow these rules may lead to adjustments or penalties. NKH provides guidance on documentation, pricing methods, and compliance to help businesses manage cross-border tax obligations responsibly.

Does Malaysia offer tax benefits for SMEs and newly incorporated companies?

Malaysia provides several incentives for SMEs such as reduced tax rates, capital allowances, automation incentives, and grants for specific industries. NKH Chartered Accountants helps businesses identify incentives they qualify for and guides them through the application and compliance process.

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