Description
- A Resolution for Change of Tax Agent is an official document prepared by a company to record the shareholders’ or directors’ decision to appoint a new tax agent or terminate the existing one. This resolution must be properly documented, approved, and submitted to the Inland Revenue Board of Malaysia (LHDN). The purpose is to ensure proper authorization, transparency, and compliance with tax administration requirements under Malaysian law.
GOV Department
- Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri Malaysia, LHDN)
Details
- A formal board or shareholders’ resolution must be passed to approve the appointment or termination of a tax agent.
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The resolution should include:
- Name of the outgoing and incoming tax agent
- Effective date of change
- Company authorization to LHDN for the new agent
- Company signatories (director or authorized officer)
- The company must notify LHDN of the change using the appropriate form or official letter.
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Supporting documents typically include:
- Resignation letter or termination notice from the previous tax agent
- Acceptance letter from the new tax agent
- Copy of the company resolution
- Updated CP55D form (Notification of Tax Agent Change)
- All submissions must comply with LHDN’s requirements to update the company’s tax record.
Important Rules
- Only tax agents registered with LHDN may represent a company in tax matters.
- The company must officially notify LHDN within a reasonable timeframe after the change.
- Both the outgoing and incoming tax agents must ensure all tax filings and handovers are properly completed.
- Failure to update LHDN on agent changes may result in communication issues or penalties.
- The company must retain all documentation of the change for record-keeping and audit purposes.
Compound & Punishment
- Failure to notify LHDN of a change in tax agent may result in administrative penalties or delays in tax processing.
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Submission of false or misleading information to LHDN is an offense under the Income Tax Act 1967 and may result in:
- Fine up to RM20,000 or imprisonment up to 3 years, or both.
- Continuous non-compliance may affect the company’s tax status or result in enforcement actions by LHDN.
Advisor
Jeffrey Eh Hao Yih , Director
Jeffrey has been providing expert guidance for businesses dealing with ongoing challenges. With his expertise, he aids clients in strategic business planning, streamlining operations, and enhancing productivity. Additionally, Jeffrey offers diverse business technology services to help digitize traditional businesses effectively.