Income Tax Audit in Malaysia

Income Tax Audit in Malaysia

Proactive Support to Navigate IRB Audits Confidently

Overview

In Malaysia, companies are typically selected for income tax audits by the Inland Revenue Board (IRB) every 3 to 5 years. The purpose of these audits is to verify that taxpayers have accurately declared their income and paid the correct amount of tax in compliance with the Income Tax Act 1967 and other applicable tax regulations.

Types of Income Tax Audits

1. Desk Audit

A Desk Audit involves an official letter from IRB, requesting specific financial documents. Taxpayers are given a defined timeframe to gather and submit the documents to the IRB branch.
Key points:

• Audit conducted at the IRB office.

• Extension of time can be requested.

• If irregularities arise, the case may escalate to a Field Audit.

2. Field Audit

In a Field Audit, IRB officers will conduct an on-site visit to the taxpayer’s premises or registered business location.
What to expect:

• IRB provides prior written notice with the audit date, scope, and years of assessment.

• Interviews with business owners/directors may be conducted.

• All relevant documents must be made available for inspection.

A Word on Tax Evasion

Tax evasion is strictly illegal under Malaysian tax law. The IRB imposes severe penalties, including fines and imprisonment, on individuals or companies involved in fraudulent tax practices. As a responsible firm, we uphold compliance and do not support any tax evasion activities. We believe every taxpayer should contribute based on their chargeable income, in accordance with the law.

How We Can Assist You

We are a licensed Tax Agent, registered under Section 153(3) of the Income Tax Act 1967, and a certified GST Agent recognized by the Royal Malaysian Customs Department. Our tax experts are equipped to support your organization throughout the entire audit and tax compliance process.

Our Tax Audit Support Services Include:

• Timely preparation and submission of required forms and statutory returns.

• Accurate computation of tax liabilities, maximizing deductions and rebates.

• Professional representation and correspondence with IRB in cases of audit, appeals, or reassessments.

• Advisory on the latest tax incentives and allowable deductions relevant to your business.

• Comprehensive support in GST compliance, from registration to submission and dispute resolution.

Why Choose Us?

• Trusted by Malaysian businesses for audit support and tax optimization.

• Deep knowledge of IRB procedures, audit frameworks, and public rulings.

• Proven track record in helping clients navigate complex tax issues with minimal disruption to operations.