|
Q：
|
Does a Representative Office need to file audited financial statements with the Companies Commission of Malaysia (CCM)?
|
|
A：
|
No. A Representative Office is not required to file audited accounts with the CCM, as it is not a legal entity under the Companies Act 2016. It operates as an extension of the foreign company and cannot generate income in Malaysia.
|
|
Q：
|
What are the annual compliance requirements for a Representative Office?
|
|
A：
|
The Representative Office must submit a progress report to Malaysian Investment Development Authority (MIDA) annually, outlining activities carried out. In addition, it is also required to submit a copy of Audited Accounts to MIDA which indicates the details of operating expenditure incurred by the Representative Office.
|
|
Q：
|
What happens if the Representative Office does not submit the Progress Report to MIDA?
|
|
A：
|
Failure to submit the progress report and Audited Accounts may result in non-renewal or revocation of approval to operate in Malaysia. This could also affect the status of expatriate staff sponsored under the Representative Office.
|
|
Q：
|
Does a Representative Office need to pay corporate tax in Malaysia?
|
|
A：
|
No. Since a Representative Office is not allowed to undertake commercial activities or generate revenue in Malaysia, it is not subject to corporate income tax. However, it must comply with employment-related obligations such as EPF, SOCSO, and monthly tax deductions (MTD) for its employees.
|
|
Q：
|
Is there a need to register with the CCM?
|
|
A：
|
No. A Representative Office is approved and monitored by MIDA, not CCM. The Representative Office has no separate legal personality and cannot enter into contracts on its own behalf (except for employment and office-related matters).
|
FAQ
