Find Accountancy, Audit and Tax expertise in Malaysia
There are numerous accounting firms in Malaysia with an established presence of home-grown firms. The ‘Big Four’ accountancy firms, along with numerous other well-known international accounting firms and networks, operate in the country – resulting in plenty of competition. The financial statements of all companies incorporated under the Companies Act of 1965, including listed, private, state-owned and not-for-profit companies, are required to be audited in accordance with Malaysian Approved Standards on Auditing (MASAs), either issued by the Malaysian Approved Standards Board (MASB) or another acceptable international accounting standard issued by a MASB recognised body. Accepted bodies include the International Accounting Standards Board, the Australian Accounting Standards Board, Financial Accounting Standards Board (USA) and Accounting Standards Board (UK). In 2012 all listed and non-listed entities were required to adopt International Financial Reporting Standards (IFRS). In the World Economic Forum’s Global Competitiveness Report (2012-13) Malaysia ranked 30th in the world for the strength of its auditing and reporting standards, with a value of 5.4 out of 7 that placed it above the world mean of 4.6. In the 2011 World Bank’s Ease of Doing Business Index the country placed 47th in the world (out of 144 countries) for resolving insolvency, coming directly below the high-income economy of France.
The Malaysian Institute of Accountants (MIA), Institute of Internal Auditors Malaysia (IIA Malaysia) and the Malaysian Institute of Certified Public Accountants (MICPA) are the key bodies in the sector. MICPA has played a significant role in setting accounting standards in the nation. It represents over 3,100 members and over 500 registered students (2012) and offers various educational and training programmes. As of 2009 it works in partnership with Institute of Chartered Accountants Australia, with the same syllabus and exams for the two, and so an individual can use the titles Certified Public Accountant, Malaysia and Chartered Accountant, Australia.
Personal income tax rates in Malaysia are progressive, rising to the maximum 26%, while individuals who do not meet residence requirements are taxed at a flat rate of 26%. The standard corporate tax rate in Malaysia is 25%, while resident small and medium-sized companies are taxed at 20% on the first MYR 500,000 ($ 165,000 USD), with the subsequent balance taxed at 25%. Service and sales tax are imposed on certain prescribed goods and service, with sales taxed at a rate of 5-10% and service at a rate of 5%. The Malaysian government has proposed the introduction of Goods and Services Tax (GST). However, the potential implementation date of this is unclear. In the 2011 Ease of Doing Business Index the country placed 41st in the world for paying taxes, significantly below Singapore in 4th place but above Indonesia at 131st place. The total tax rate for the country, in the Global Competitiveness Report (2012- 2013), was calculated as 34.0% placing it in 50th position, with a higher rate than Singapore at 25th with 27.1%.
|Accountancy, Audit and Tax organisations in Malaysia|
|The Malaysian Institute of Certified Public Accountants||