Is a tax agent compulsory for a Malaysian company's tax return?
No law requires a company to use a tax agent; a director can file Form C personally on MyTax. But only people approved under s.153 of the Income Tax Act may act as tax agents, tax consultants or tax advisers for a fee.
There is no general rule that a company must hire a tax agent. A director or authorised officer can log in to MyTax and file the company's return directly.
What the law does regulate is who may offer the service. LHDN's tax agent page explains that under s.153(1) of the Income Tax Act only an individual approved by the Minister of Finance may work as a tax agent, tax consultant or tax adviser representing others before LHDN.
An approved tax agent can:
- prepare and submit returns for clients through MyTax,
- deal with LHDN on audits and queries,
- file appeals and applications for the client.
Why many companies use one: the tax computation involves adjustments (non-deductible expenses, capital allowances, loss rules, SME tests), and mistakes can attract penalties.
If you file yourself: you remain fully responsible for accuracy and deadlines, and should keep supporting records for seven years.
If you use an agent: the company still signs the declaration, so review the computation and ask how the SME conditions and carried-forward losses were treated.
Check that any adviser is on LHDN's approved list before appointing them.
Legal basis
- Income Tax Act 1967, s.153(1)
- Income Tax Act 1967, s.77A
Sources
Applies to YA 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- How do I change my company's tax agent in Malaysia?Appoint the new tax agent through MyTax and remove access for the old one, then hand over the tax file records. Check that the new adviser is approved under s.153. The company stays responsible for filings, so settle any open deadlines first.
- What is the corporate tax rate for a small company in Malaysia?A Malaysian resident company normally pays 24% income tax. A company that meets the SME conditions pays 15% on the first RM150,000 of chargeable income, 17% on the next RM450,000 (up to RM600,000), and 24% on anything above that.
- What conditions must my company meet to get the SME tax rates in Malaysia?To use the lower 15%/17% rates, the company must be resident, have ordinary paid-up capital of RM2.5 million or less, and gross business income of RM50 million or less. It must also pass the related-company test and, from YA 2024, a foreign-ownership test.
- Does a dormant company with no income still have to file a tax return in Malaysia?Yes. LHDN says companies that are dormant or have not started business must still register a tax file and file returns. A nil return tells LHDN there is no taxable income, and failing to file can be an offence even when no tax is due.
- What is the Year of Assessment and how does it relate to my financial year?The Year of Assessment (YA) is the calendar year in which your company's accounting year (the basis period) ends. A company with a financial year ending 30 June 2025 reports that income in YA 2025.