Malaysian Tax Compliance: Taxpayer Responsibilities and Tax Agents

This report analyzes the key responsibilities of both corporate and individual Malaysian taxpayers in the tax compliance process, particularly within the context of the Self-Assessment System (SAS). These responsibilities include notifying the Director General (DG) of chargeability, furnishing tax returns, paying taxes on time through monthly tax deductions or installments, notifying any change of address, and maintaining proper records and documents for a specified period. The report also examines the factors that lead taxpayers to seek the assistance of tax agents, such as the complexity of the income tax system, the high cost of non-compliance, the potential for tax agents to save money by identifying deductions and credits, the time and energy saved by outsourcing tax preparation, and the benefit of receiving professional advice for future financial planning. The study concludes that understanding and fulfilling these responsibilities are crucial for ensuring tax compliance in Malaysia, and highlights the value tax agents can provide in navigating the complexities of the tax system.