AmazingCosec

In corporate accounting in Malaysia, it’s essential to distinguish between “Amount Due to Director” and “Amount Due from Director” because each carries different accounting and tax implications. When you record an “Amount Due to Director,” you are acknowledging a liability ( credit side of Trial Balance, same as Revenue, also on credit side )  on your company’s balance sheet. This relates to genuine obligations the company has toward a director, such as unpaid salaries, bonuses, or advances that have not yet been repaid. In this case, the company owes money to the director, and the transaction must be properly documented to show that the payment is a regular, legitimate expense. If not clearly identified, such liabilities might be scrutinised by LHDN (Malaysia Inland Revenue Board) to ensure they are not misclassified in an attempt to reduce taxable income or mask non-deductible expenses. In contrast, an “Amount Due from Director” represents a receivable, meaning that the director...

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To wind up a Limited Liability Partnership (LLP) in Malaysia, the process involves several steps governed by the Limited Liability Partnerships Act 2012 and requires coordination with various authorities, notably the Inland Revenue Board (LHDN) and the Companies Commission of Malaysia (SSM).  Here’s a detailed overview of the winding-up process: : : The LLP must be dormant, meaning it should not be carrying on any business or operations. All bank accounts must be closed, and there should be no assets or liabilities remaining. : Ensure that all debts, liabilities, and penalties under the LLP Act have been settled. This includes any outstanding tax obligations with LHDN. : All relevant employee registrations (EPF, SOCSO, EIS) must be closed before proceeding with the application for winding up. : Submit the final tax return (Form PT and Form E) to LHDN and obtain a written notice (CP7(PT) Form) confirming that there are no objections to the dissolution of the LLP....

Upgrade Your Invoicing Accounting Software:  ABSS Connect (from ABSS) Bukku.my (cloud) Quickbooks Online (cloud) QNE Cloud AI Embrace e-Invoicing for Your SME in Malaysia! Malaysia’s e-invoicing mandate is reshaping how businesses manage financial transactions, and SMEs are now at the forefront of this digital transformation.  With recent updates to the implementation timeline, SMEs have more time to adapt, but proactive planning remains critical. Here’s how your SME can leverage e-invoicing to streamline operations, reduce costs, and stay compliant. Phase 4 for taxpayer with revenue (in year 2023 and 2024) below RM500,000 a year and not exempted. Currently only taxpayer with revenue below RM150,000 are exempted, we looking forward relaxation by government to increase the exemption threshold to RM300,000 to benefit more MSME. Read more here Guidelines

Avoiding Financial Pitfalls: The Importance of Timely Financial Statements for Malaysian SMEs As a Company Secretary in Malaysia, ensuring compliance with regulatory requirements is critical for SMEs to maintain operational integrity and avoid costly penalties.  One key obligation for Sdn Bhd companies is the timely submission of annual financial statements to the Companies Commission of Malaysia (SSM).  Failure to meet this deadline can have serious repercussions. Below, we break down the implications of delayed or missed filings and why adherence is essential.   --- ### 1. Legal Penalties and Fines SSM mandates that all Sdn Bhd companies file annual returns to update their company details, including financial statements[1]. Non-compliance can trigger fines or penalties imposed by SSM. While the exact penalty amounts are not detailed in the search results, SSM typically enforces strict adherence to deadlines, and late submissions may result in monetary fines...

Understanding the Legal Landscape: Are Company Secretaries in Malaysia at Risk of Court Charges?    As a company secretary in Malaysia, you play a critical role in ensuring your organization’s compliance with legal and regulatory requirements.   The Role of a Company Secretary in Malaysia Under the Companies Act 2016, a company secretary is responsible for:   - Ensuring statutory compliance (e.g., filing annual returns, maintaining registers).   - Advising directors on legal obligations.   - Acting as the liaison between the company and regulatory bodies.   Failure to fulfill these duties can expose the secretary to legal risks, though direct charges are rare if duties are performed diligently. Legal Risks for Company Secretaries   1. Non-Compliance with Statutory Requirements - Example: Failing to file annual returns or maintain proper records. - Consequence: The secretary could face penalties if the com...

**Understanding Fines vs. Penalties in the Companies Act 2016 🧐💼 ** Ever wondered what’s the difference between a **fine** and a **penalty** under the Companies Act 2016? Let’s break it down in simple terms! 🔹  **Fine**: This is a monetary punishment imposed by the court for breaching the law. Think of it as a "legal slap on the wrist" for not following the rules. 🔹  **Penalty**: This is a fixed amount you must pay for specific offences, often without going to court. It’s like a "pre-set fee" for breaking certain regulations.   Both are serious, but the key difference is how they’re enforced. Fines involve the court, while penalties are more straightforward.   Stay compliant and avoid unnecessary costs! 🚀💡   #AmazingCFO #AmazingCosec #CompaniesAct2016 #ComplianceMadeSimple #BusinessTips