Limited Liability Partnership (LLP) LHDN Tax Identification Number

Afraid of a RM4,000 Penalty, I Quickly Registered My LLP's Tax Identification Number

How to Register a Limited Liability Partnership (LLP) Tax Identification Number?

I have been running my business with this LLP since 2019, and since then I have never declared or declared any taxes. In 2022, I was informed that one of my friends had received a compound notice for his negligence in not paying taxes to the Inland Revenue Board of Malaysia (LHDN) for the business conducted through his LLP.
From 2019 to 2021, I was not exposed to this matter. As far as I know, we only need to prepare annual accounts and send them to the Companies Commission of Malaysia (SSM) every year with an annual fee of RM200.

This confused me at first. I was informed that I did not need to make any tax declarations and only needed to focus on annual accounting and annual declaration. But it turned out that I had misunderstood, and for fear of being fined up to RM20,000, I quickly registered the income tax number for my LLP.

Before I start sharing how to register, it is good if we have a brief knowledge of LHDN tax matters for LLPs. For LLPs, it is taxed the same as Companies where the income taxed at the LLP level is at a tax rate of 24% in general.

However, LLPs with a capital contribution of RM2.5 million or less will enjoy a preferential tax rate of 19% on the first RM 500,000 of taxable income. Profits paid, credited or distributed to partners in the LLP are exempt from tax.

Preparation of Financial Statements for Income Tax Purposes

LLPs are not required to prepare financial statements audited by an auditor but must keep accounting and other records regularly and adequately to show the true financial position. For income tax purposes, LLPs are required to prepare complete accounting records containing profit and loss accounts, balance sheets and explanatory notes to the accounts.

However, if the accounting records are not prepared in the usual accounting format, the LLP shall keep the following records:

Income information
Expenditure information
List of debtors and creditors/liabilities
List of all assets (current and fixed)
Percentage of capital contribution by each partner
Explanatorynotes for items (i) to (v)
Other supporting documents to prove business transactions.

Registering an LLP Tax Registration Number from Home

Registration of an LLP income tax number can be done online and entirely from home. You can also present yourself at the nearest LHDN office. They will help you use the same system on a computer provided for the registration process. However, at the LHDN office, you have to wait for a queue number to use the computer and it is quite uncomfortable to do it in a crowd. It is best that you do it at home or in your own office. I will briefly explain the steps of the LLP income tax number registration process as below:

Prepare documents such as a Copy of the LLP Registration Notice/Conversion to LLP, a Copy of the Latest LLP Profile and a List of Partners (must be purchased from SSM)
Go to the mytax.hasil.gov.my portal and select tax number registration
First, you need to fill in your LLP’s basic information
Then, you need to complete the information regarding all the partners in your LLP
Next, you need to fill in the information of the compliance officer appointed for your LLP
Register an employer file for the LLP and upload all the documents required by LHDN

It looks easy, but you have to fill it in carefully and there are some other important things that you need to do correctly. This writing is intended to give you an idea of the important processes before you can complete the registration of your LLP tax number whether at the LHDN office or if through your own personal computer.

Ebook DIY Daftar Nombor Cukai PLT

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Cost to Register a LLP Tax Identification Number by a Tax Agent

To carry out the process of registering an LLP tax number yourself, the cost is under RM100 (the cost of purchasing documents from SSM). So I was quite surprised when there were tax agents or secretarial companies that charged up to RM1,300 to do this process.

Register Your Own LLP Tax Identification Number to Save More

Regarding this matter, you have two options, either you can:

obtain the services of a tax agent or company secretary who provides the service. This way is easier and faster without having to worry. Pay them, and they will manage all the processes of registering your LLP income tax number. This method is suitable if you have a large business capital, or
do it yourself or “Do-it-Yourself” step by step using the ebook that I have prepared below.

In this ebook, I have compiled and listed the important steps that you need to take so that you can do your own registration of your LLP income tax number. Here is what you will learn in the DIY “Do-it-Yourself” ebook LHDN LLP Guide and Steps Without Agent:

List of documents and actions required
Detailed step-by-step preparation and purchase of documents required by LHDN
Detailed step-by-step how to fill in the LHDN income tax number registration form for your LLP
Important phone numbers and emails for the process of communication with LHDN
Other important tips and advice in this process

Ebook DIY Daftar Nombor Cukai PLT

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Four (4) advantages of this Ebook are as follows:

Easy to understand & facilitate your affairs
There are detailed step-by-step steps for each process and action to be taken.
Save thousands of ringgit of your money
Instead of wasting thousands of ringgit, you can do this process yourself. Be a smart user and business operator.
Save your time
Believe it or not, I repeated all these processes almost 10 times because of small mistakes in documents and procedures. Don't make the same mistakes as me.
Save your energy and commitment
To get all the information, I made dozens of calls, here and there (SSM and LHDN). So, don't waste your energy like I did before.

I have gone back and forth from the office to LHDN to get information. I have wasted a lot of time. After reading this Ebook, everything is clear and I finally managed to register my LLP tax number.

Shahreza bin Shahrir

Kuala Lumpur

I have gone back and forth from the office to LHDN to get information. I have wasted a lot of time. After reading this Ebook, everything is clear and I finally managed to register my LLP tax number.

Han Ben Teh

Petaling Jaya, Selangor

I used the MudahPLT Ebook to open my LLP. I used this Ebook to register my LLP tax number. Easy with clear explanations.

Viknesvaran Selvarajan

Johor Bahru, Johor

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