Audited Financial Statements
For a Sdn Bhd, your audited financial statements are the foundation of your Form C. The audited accounts include the balance sheet, income statement, statement of changes in equity, and notes to the accounts — all reviewed and signed off by a licensed auditor.
Your tax agent will use the audited accounts to compute your chargeable income, identify any tax adjustments (expenses not deductible for tax purposes, capital allowances to claim, etc.), and prepare the return.
Form C cannot be filed without audited accounts. If your accounts are not yet audited when your tax agent is ready to file, the filing is delayed. This is one of the most common causes of late Form C submission.
Tax Computation Workings
Beyond the audited statements, your tax agent needs to know about items that are treated differently for accounting purposes versus tax purposes. These adjustments are made in the tax computation.
Common items your tax agent will ask about: entertainment expenses (only 50% deductible), motor vehicle expenses (restrictions apply for non-commercial vehicles), depreciation (replaced for tax purposes by capital allowances under the Income Tax Act), provisions and accruals (may not be deductible until actually paid), and any donations made to approved institutions.
If you have a clear record of these items from your management accounts, providing them upfront saves your tax agent from having to extract them manually.
- Entertainment expense total (subject to 50% restriction)
- Motor vehicle expenses and details of vehicles used
- Capital expenditure (assets purchased during the year) for capital allowance claims
- Any provisions or accruals in the accounts
- Approved donations made during the year
- Any research and development expenditure
Capital Expenditure Records
Capital allowances replace accounting depreciation in the tax computation. To claim the correct allowance, your tax agent needs to know what assets were purchased during the year, the cost of each asset, and when each asset was first put into use.
Your fixed asset register, with purchase invoices for new additions, is the key document here. If your bookkeeper maintains a proper fixed asset schedule, this is straightforward to hand over. If assets were purchased but not properly recorded, your tax agent will need to reconstruct this — at additional cost.
Payroll and Statutory Contribution Records
Your tax agent needs to verify that your total salary and wages expense in the accounts reconciles with your actual payroll. Provide a payroll summary for the full financial year showing total gross salaries paid, total EPF, SOCSO, and EIS contributions, and total PCB remitted to LHDN.
If you have staff who resigned or joined mid-year, ensure those periods are correctly reflected in your payroll summary.
- Full-year payroll summary by month
- Total gross salaries and wages
- Total EPF, SOCSO, EIS employer contributions
- Total PCB remitted
- Form E (employer's return) if already filed
Director and Related-Party Information
LHDN requires disclosure of director remuneration and any transactions between the company and related parties (directors, shareholders, related companies). Your tax agent will need the total director fees, salaries, and benefits paid during the year, as well as any loans between the company and its directors.
Related-party transactions must be conducted at arm's length. If your company has intercompany transactions with related entities, your tax agent may ask for documentation supporting the pricing.
Prior Year Assessment and CP204 Records
Your tax agent will want to see your prior year's Notice of Assessment from LHDN (if received), your CP204 instalment schedule, and confirmation of all instalment payments made during the year.
The total instalments paid via CP204 are credited against your final tax liability when Form C is assessed. If there are discrepancies between what you paid and what LHDN has recorded, these need to be reconciled before the return is finalised.
- Prior year Notice of Assessment (if received)
- CP204 instalment schedule for the year
- Payment confirmations for all 12 CP204 instalments
- Any CP204A revision submissions made during the year