IMPORTANCE OF A tax AGENT

Why should hire tax agent?

Most of the people claim that the hiring tax agent is a waste of money; thus, it is unnecessary to pay for this service. However, since you are the business owner, you should know that hiring a tax agent is beneficial to your business. Since tax agent plays a vital role in your business, you do not have to deal with the tax computation by yourself.

 

Tax agent is important due to some significant reasons. When a company has spent additional expenses, it would bring more advantages in the tax deduction. Tax agents are experts in this area. They are more proficient to help your company and yourself to reduce the tax that you need to pay. They always keep updated with the new tax code changes so as to help you to get higher tax returns in your tax computation.

Responsibilities of the Tax Agent

Tax agents know the details of the government regulation that must be followed when filing the tax to the IRB. They give advice about your filing options and help you to prepare the filing. Here are some example of responsibilities of a tax agent:

• Prepare and file at the Inland Revenue Board (IRB) and, in that connection, prepare the income tax computation;
• Advise the payment of the balance of tax (if any) based on the Company’s annual tax return;
• Advise the due date for submission of the return of original estimated tax payable and compliance requirements in relation to the amount of the estimated tax;
• Collect, organize, and prepare tax returns and documents;
• Evaluate the financial and legal circumstances of clients to determine liabilities in taxes;
• Complete any complex tax form and schedule that the majority of tax preparers are unaware of;
• Represent client dealing with agencies of tax collection.

Why should companies hire or outsource tax agents?

Proficiency

Most of the tax agents are professionals in accounting who have completed different certifications such as ACCA and MIA. They provide guidance and advice to those who are in need. They need to pass a few tests in order to maintain their qualification annually. It allows them to become more familiar with the up-to-date tax regulation. They allow you to benefit your company with their knowledge.

For example, if your company struggles with maintenance or purchasing new machinery for the business purpose, you should ask professional tax agent about this tax treatment and how it will affect your company’s tax computation.

Cross Border Tax

The cross border taxation in Malaysia has become complex and strict in the last few years. This is due to an increase in the number of companies who are involved in international business. These rules can greatly change depending on the country-by-country reporting and the nature of business.

When you are operating a business, it is hard and challenging for you to follow and be informed of the up-to-date tax regulation and information due to the need to focus on other business aspects. So, it is better to hire or outsource tax agents that allow you to ensure compliance with the up-to-date cross border tax regulation.

Cost-Effective

A business owner of SME needs to take part in different areas of the business, so it is challenging and difficult for him/her to ensure all the business operations are conducted accurately and smoothly. To the business owner, it is very high risk that he/she will make a mistake when filing, preparing the tax computation and causing penalties or fines by the IRB. These mistakes are costly and time-consuming for the business owner to settle it which is unworthy.

In order to solve these issues, it is a good way for SME to outsource or hire a tax agent to help manage the tax matter of the business. This helps to save the cost of the mistake and to ensure SME compliance with the up-to-date tax regulation.

Tax Deduction

Business owners can identify the potential deductions and tax advice from the tax consultant in order to cut the taxes that were originally needed to be paid by SME. This advice allows the business owner to make decisions that are related to the tax deduction. They understand and know in-depth of the up-to-date tax law. They have the ability to understand which deduction is available to the business. From here, they are able to cut taxes by reviewing the books to ensure the business owner to reduce the tax liability.

 

Why AL Account Management？

Our founder is Chartered Accountant with the Malaysian Institute of Accountants (MIA), member of Association of Chartered Certified Accountants (ACCA) and Company Secretary in Malaysia. Our dedicated professional team provides a comprehensive and professional service to your company based on your needs. We will provide the high quality of service from our professional team. For more information, please contact us by dropping us an email at [email protected].

Reference: Profession As a Tax Agent

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