Audit Exemption for Certain Private Companies in Malaysia by Companies Commission of Malaysia (SSM)

The Companies Commission of Malaysia (SSM) issued a practice directive (PD 10/2024) on December 16, 2024, outlining qualifying criteria for certain private companies that qualify for audit exemption.
 

Qualifying Criteria:

To qualify for audit exemption, a private company must meet at least two of the following conditions for the current and the immediate past two financial years:

• Revenue: Does not exceed RM3,000,000.
• Total Assets: Does not exceed RM3,000,000.
• Employees: Does not exceed 30 employees.

 

Definitions:

• Annual Revenue: Refers to revenue received or receivable during the year but excludes:
  • Credit entries for the reversal of earlier accounting entries.
  • Entries related to taxation.
  • Reversals of earlier provisions.
  • Gains from the derecognition (disposal) of property, plant, equipment, and investment property recorded in the Statement of Comprehensive Income.

 

• Total Assets: Refers to all assets as defined under applicable approved accounting standards, including both current and non-current assets.

 

• Employees: Full-time employees employed by the company at the end of each relevant financial year, including:
  • Local, foreign, contract workers, and probationary workers.
  • Exclusions:
    • Directors who are also working as full-time employees.
    • Shareholders who are also working as full-time employees.
    • Family members or friends working without pay or on irregular wages.

Implementation:

The qualifying thresholds for audit exemption will be phased in over three years (2025–2027) with increasing limits for revenue, total assets, and employees as follows:

Note: Financial thresholds apply to the current and immediate past two financial years

 

Non-Application (Clause 12):

The audit exemption does not apply to the following types of companies:

• Exempt Private Companies: Companies that have opted to lodge a certificate with the Registrar regarding their status as an exempt private company under Section 260 of the Companies Act 2016.
• Public Companies: This includes listed companies.
• Subsidiaries of Public Companies: Private companies that are subsidiaries of public companies.
• Foreign Companies: Companies that are incorporated outside Malaysia.

For further details and the original SSM Practice Directive, you can refer to the SSM Practice Directive (PD 10/2024).

 

马来西亚公司委员会（SSM）于2024年12月16日发布的实务指引 (PD 10/2024), 该指引规定了符合审计豁免资格的特定私人公司的条件。

 

资格标准

若要符合审计豁免资格，私人公司必须满足当前和过去两个财务年度中的以下条件至少两项：

• 收入：不超过 RM3,000,000。
• 总资产：不超过 RM3,000,000。
• 员工人数：不超过 30名员工

 

定义

1. 年度收入：指公司在该年度内收到或应收的收入，但不包括：

   • 用于冲销早期会计分录的贷方条目。
   • 与税务相关的条目。
   • 早期拨备的冲销。
   • 在《综合收益表》中确认的固定资产、设备和投资物业处置（终止确认）的收益。

2. 总资产：指根据适用的已批准会计标准定义的所有资产，包括流动资产和非流动资产。

3. 员工：指在每个相关财务年度结束时受雇于公司的全职员工，包括：

   • 本地员工、外籍员工、合同员工和试用期员工。
   • 不包括：
     • 兼任全职员工的公司董事。
     • 兼任全职员工的公司股东。
     • 未领取工资或领取不定期工资的家庭成员或朋友。

 

实施

审计豁免的资格门槛将在三年内逐步实施（2025-2027年），并逐年提高收入、总资产和员工人数的限制，具体如下：

需注意：财务门槛适用于当前和前两个财务年度的财务状况。

 

不适用情况（第12条）

以下类型的公司不适用审计豁免：

1. 豁免私人公司：根据《2016年公司法》第260条，已选择向注册局提交豁免私人公司证书的公司。
2. 上市公司：包括所有的上市公司。
3. 上市公司的子公司：属于上市公司的私人子公司。
4. 外国公司：在马来西亚以外注册成立的公司。

如需进一步了解详情及获取马来西亚公司委员会（SSM）发布的原始实务指引，请参考SSM Practice Directive (PD 10/2024).


Disclaimer: The information provided in this guide is for general informational purposes only and is not intended to serve as legal or financial advice. While every effort has been made to ensure the accuracy of the information, the company assumes no responsibility for any errors or omissions. Please consult with a qualified professional for specific advice related to your circumstances.