Limited Liability Partnership (LLP/PLT) Compliance Requirements

Every LLP shall display its name and registration number outside its registered office and place of business.

Every letterhead, invoice, bill, publication including electronic medium, website or other official documents issued by the LLP.

S. 20(3) of LLP Act

Notice of regisration, register of name and address of each partner and compliance officer, most recent annual declaration, any statement lodged with SSM, certificate of registration issued by SSM, all copies of LLP agreement and copies of any instrument relating to any charge created shall be made available for inspection and copying during ordinary business hours at the request of partner.

Keeping proper accounting and other records which sufficiently explain the transactions and financial position of the LLP and enable profit and loss accounts and balance sheets to be prepared from time to time which give a true and fair view of the states of affairs of the LLP.

The accounting and other records shall not be required to be audited and are to be retained for 7 years and shall be kept at the registered office or such other place as the partners think fit provided that the SSM is notified of that other place and the accounting and other records shall at all times be open to inspection by the partners.

In accordance to the Inland Revenue Board of Malaysia (IRBM) guidelines of record keeping, it is obliged that all accounting documents should be kept in its original form (hardcopies) although they could be converted to an electronic form (scanned copies) to be conveniently retrievable. The accounting record should be made available if IRBM officer requests for its original.

Submission of particulars as determined by the SSM and accompanied by such documents as are required to be included in the declaration.

To notify SSM of any changes occured in the registered particulars of a LLP accompanied by prescribed fee.

Every LLP shall for each YA furnish an estimate of tax payable to the IRB.

Effective from YA 2019, a LLP shall furnish its estimate or revised estimate of its tax payable by way of electronic transmission (e-filing).

Effective from YA 2019, a LLP shall furnish its estimate or revised estimate of its tax payable by way of electronic transmission (e-filing).
 

Compulsory if annual sales turnover exceeding RM500,000 which can be determined based on either

• The total value of taxable supplies of the current month and the previous 11 months, or
• The total value of taxable supplies of the current month and the next 11 months

Voluntary Registration is allowable but must remain in the system for at least 2 years.

Who must register?
An individual, sole proprietor, partnership, company, trust, estate, society, union, club, association or any other organization including a government department or a local authority which is involved in the business of making taxable supplies in Malaysia.

A  registered  person  must  comply  with  the requirements  under  GST legislation as follows:
a)  account for GST on taxable supplies made and received, i.e. output tax and input tax respectively;
b)  submit GST return (GST-03) and pay tax not later than the last day of the following month after the taxable period;
c)  issue tax invoice on any supply unless as allowed by Customs;
d)  inform Customs of the cessation of business within thirty days from the date of business cessation;
e)  inform Customs on any changes of address, taxable activity, accounting basis and taxable period; and
f)  keep adequate records of all business transactions relating to GST in the National or English language for seven years.

Reverse Charge for importation of services
A supplier who does not belong in Malaysia and supplies services to a customer in Malaysia does not have to charge GST. However, the customer who receives the services for the purpose of any business carried on by him is required to account for GST by a reverse charge mechanism.

When services are imported from outside Malaysia and supplied to a recipient in Malaysia, being taxable supplies if made in Malaysia, the recipient of the supply shall account and pay GST if such imported services are for the business purposes and consumed in Malaysia. He shall account for output tax on the portion of the services consumed in Malaysia. If the recipient is a taxable person, he is entitled to claim input tax on the services if the imported services are used for making taxable supplies.

If the recipient is not a taxable person, he is still required to account the GST as output tax and declare the tax in a prescribed form (Form GST-04). The tax has to be paid not later than the last day of the subsequent month from the month in which the payment of supply is made.

The time of supply of imported services is due when payment is made by the recipient of that service to the extent covered by the payment made.

A recipient does not need to issue any tax invoice when he receives an imported service. But for audit purpose, the recipient should keep the invoice he receives from the overseas supplier.