Malaysian Features

Malaysian Specific Questions: FAQ for Beginners

Understanding BigLedger’s Malaysian compliance features and local business requirements

E-Invoice and MyInvois

Q: What is MyInvois and when do I need to use it?

A: MyInvois is Malaysia’s new mandatory e-invoicing system that will eventually affect ALL Malaysian businesses:

What MyInvois Actually Means for Your Business:

No more paper invoices: All invoices must be electronic
Direct submission to LHDN: Tax department gets copy immediately
Standardized format: All invoices must follow government format
Real-time validation: System checks invoices before accepting

Implementation Timeline (When YOU need to comply):

Phase 1: August 2024 (Already started)

Businesses with annual turnover over RM 100 million

Phase 2: January 2025 (Coming soon!)

Businesses with annual turnover over RM 25 million

Phase 3: July 2025 (Most small businesses)

ALL remaining businesses (including very small ones)

What This Means for Small Business Owners:

If you make less than RM 25 million per year, you have until July 2025
If you make less than RM 150,000 per year, you’re still required but may get simplified process
Important: Even if you’re small, start preparing now!

Why BigLedger is Perfect for This:

We’re already fully certified by MDEC (government approved)
We handle all the technical complexity for you
You just create invoices normally - we handle the MyInvois submission
No additional learning required

Common Small Business Concerns:

“I only have 3 customers - do I really need this?” → Yes, if you’re a registered business, you’ll need to comply

“I’m not tech-savvy - this sounds too complicated” → BigLedger makes it simple - you won’t even know it’s happening

“What happens if I don’t comply?” → Penalties start at RM 200 and can go up to RM 20,000

“I use handwritten invoices now” → You’ll need to switch to electronic - BigLedger makes this transition easy

Q: What is PEPPOL and do I need it?

A: PEPPOL sounds technical, but think of it as the “postal system” for electronic business documents:

What PEPPOL Actually Is:

International network: Like email, but for business documents
Secure delivery: Guaranteed delivery of invoices and orders
Global standard: Used by 40+ countries worldwide
Business benefits: Faster payments, fewer errors, better relationships

Do You Need PEPPOL?

Yes, if you sell to: Government agencies, large corporations, international customers
Maybe, if you sell to: Medium-sized Malaysian businesses (they may require it)
Probably not yet, if you sell to: Individual consumers, very small businesses

Why BigLedger’s PEPPOL Certification Matters:

Future-proof: Ready when your customers require it
No extra cost: PEPPOL capability included in BigLedger
Automatic setup: We handle all technical configuration
Competitive advantage: Many of your competitors don’t have this yet

Real-World Examples:

Ahmad’s Air Conditioning Service:

Mostly residential customers: Doesn’t need PEPPOL now
Gets contract with government building: PEPPOL required
With BigLedger: Just tick a box, everything else automatic

Siti’s Catering Business:

Supplies corporate events: Some clients starting to require PEPPOL
With BigLedger: Can offer electronic invoicing as premium service

The Bottom Line: You may not need PEPPOL today, but having it ready gives you more business opportunities.

Q: How does SST work in BigLedger?

A: SST (Sales and Service Tax) in BigLedger is designed to match exactly how Malaysian businesses operate:

Understanding Malaysian SST:

Sales Tax: 10% on most manufactured goods (paid by manufacturers/importers)
Service Tax: 6% on taxable services (paid by service providers)
Who pays: Only businesses above certain thresholds
Filing: Every 2 months for most businesses

SST Thresholds (When you need to register):

Sales Tax: Annual turnover > RM 500,000
Service Tax: Annual turnover > RM 150,000

How BigLedger Handles SST Automatically:

For Sales Tax:

Automatically applies 10% to manufactured goods you sell
Tracks what you owe to Royal Malaysian Customs
Generates SST return forms automatically
Handles import/export scenarios

For Service Tax:

Applies 6% to qualifying services
Tracks exempt vs taxable services
Calculates monthly obligations
Manages service tax groupings

Setting Up SST in BigLedger:

Register your SST number in company settings
Configure product/service tax rates (BigLedger has Malaysian defaults)
Set up tax groups for different types of items
Enable automatic tax calculations

Common SST Scenarios for Small Business:

Scenario 1: Small Restaurant (Under RM 150,000/year)

No SST registration required
But still need to track for threshold monitoring
BigLedger alerts you when approaching threshold

Scenario 2: Growing Service Business (Over RM 150,000/year)

Must register for Service Tax
BigLedger automatically applies 6% to taxable services
Generates filing forms every 2 months

Scenario 3: Small Manufacturer (Over RM 500,000/year)

Must register for Sales Tax
BigLedger tracks manufactured vs imported goods
Handles complex manufacturing tax scenarios

Beginner Tips:

Start tracking early: Even before you need to register
Use BigLedger’s defaults: Pre-configured for Malaysian rates
Regular reviews: Check SST reports monthly
Professional advice: Consult accountant for complex situations

Malaysian Banking and Payments

Q: How does BigLedger integrate with Malaysian banks?

A: BigLedger works with all major Malaysian banks to make your banking seamless:

Supported Malaysian Banks:

Maybank: Full integration including Islamic banking
CIMB: Corporate and business accounts
Public Bank: All business account types
Hong Leong Bank: Standard and premium accounts
RHB Bank: Business and commercial accounts
AmBank: Including SME-focused accounts
Bank Islam: Shariah-compliant banking
OCBC: Local and regional accounts

What Bank Integration Means:

Automatic transaction import: Your bank transactions appear in BigLedger automatically
Real-time balances: Always know your exact cash position
Payment processing: Send payments directly from BigLedger
Reconciliation: Automatic matching of transactions
Multi-account support: Handle multiple bank accounts easily

Setting Up Bank Integration:

Method 1: Direct API Connection (Recommended)

Authorize BigLedger to access your bank account (read-only)
Bank transactions download automatically daily
Review and categorize imported transactions
Automatic reconciliation happens in background

Method 2: File Import (If direct connection not available)

Download bank statements from your online banking
Upload to BigLedger (supports all Malaysian bank formats)
Automatic processing of transaction data
Manual categorization of new transactions

Malaysian-Specific Features:

DuitNow integration: Handle QR code and instant payments
RENTAS support: Real-time gross settlement tracking
IBG processing: Interbank GIRO transaction handling
Cheque management: Malaysian cheque format support

Benefits for Malaysian Businesses:

Faster reconciliation: What used to take hours now takes minutes
Better cash flow visibility: Real-time understanding of cash position
Reduced errors: Automatic data entry eliminates manual mistakes
Compliance ready: Proper records for audits and tax filings

Q: Can I handle ringgit and foreign currencies?

A: Yes! BigLedger is designed for Malaysian businesses that deal with both local and international transactions:

Multi-Currency Capabilities:

Base Currency Setup:

Primary currency: Malaysian Ringgit (MYR)
Reporting: All reports can show in MYR
Legal compliance: Meets Malaysian accounting standards

Foreign Currency Support:

Major currencies: USD, EUR, SGD, GBP, JPY, CNY, THB, etc.
Automatic exchange rates: Updated daily from reliable sources
Manual rate override: Set specific rates for contracts
Historical rates: Track rate changes over time

Real-World Usage Examples:

Example 1: Import Business

Buy products from China in USD
Sell to Malaysian customers in MYR
BigLedger automatically converts and tracks gains/losses

Example 2: Export Services

Provide consulting to Singapore client (SGD)
Pay local staff in MYR
Reports show profitability in both currencies

Example 3: E-commerce

Sell on international platforms (USD, EUR)
Local expenses in MYR
Consolidated reporting shows true performance

How Currency Conversion Works:

Transaction entry: Enter in original currency (e.g., USD 1,000)
Automatic conversion: System converts to MYR using current rate
Dual tracking: Both original and converted amounts stored
Reporting flexibility: View reports in any currency

Exchange Rate Management:

Daily rate updates: Automatic from Bank Negara Malaysia
Rate sources: Multiple reliable sources for accuracy
Manual overrides: Use contract rates when needed
Gain/loss tracking: Automatic calculation of currency impacts

Malaysian Tax Implications:

Income recognition: Proper MYR conversion for tax purposes
Expense deductions: Converted at appropriate rates
Year-end adjustments: Automatic currency revaluation
Compliance reporting: All reports available in MYR

Local Compliance and Regulations

Q: What reports do I need for LHDN (Inland Revenue Board)?

A: BigLedger automatically generates all reports required by LHDN, making tax compliance straightforward:

Monthly/Bi-monthly Requirements:

1. SST Returns (If registered):

Frequency: Every 2 months
BigLedger provides: Complete SST-02 form with all calculations
Automatic features: Tax calculations, penalty avoidance, e-filing ready

2. Monthly Tax Deduction (MTD) (If applicable):

Frequency: Monthly by 15th
BigLedger provides: CP30 form for employee tax deductions
Integration: Connects with payroll module

Annual Requirements:

3. Income Tax Return:

Form BE: For businesses (BigLedger generates all needed schedules)
Supporting documents: All transaction details, profit/loss statements
Electronic filing: Direct integration with LHDN e-filing system

4. Audited Financial Statements (If required):

Trial balance: Automatically generated
Detailed ledgers: All transaction histories
Audit trail: Complete documentation for auditors

LHDN-Specific Reports Available in BigLedger:

Tax Reports:

SST calculation worksheets
Income tax computation
Withholding tax schedules
RPGT (property gains tax) calculations

Financial Reports:

Profit & Loss in LHDN format
Balance Sheet per Malaysian standards
Cash flow statements
Related party transactions

Supporting Documentation:

General ledger details
Bank reconciliation reports
Fixed asset registers
Inventory valuation reports

What Makes BigLedger LHDN-Compliant:

Malaysian accounting standards: Built-in compliance with FRS/MFRS
Tax calculations: Accurate Malaysian tax computations
Audit trail: Complete record keeping as required by law
Retention: 7-year document storage as required
Language support: Reports available in Bahasa Malaysia and English

Q: How do I comply with Malaysian tax laws?

A: BigLedger helps ensure compliance with all major Malaysian tax requirements:

Corporate Income Tax Compliance:

Tax Rate Application:

Standard rate: 24% for most companies
SME rates: Lower rates for qualifying small businesses
- First RM 600,000: 17%
- Next RM 400,000: 24%
Automatic calculation: BigLedger applies correct rates based on your income

Key Compliance Features:

Automatic provisions: Monthly tax provision calculations
Installment payments: Track and calculate monthly tax payments
Year-end adjustments: Reconcile actual vs estimated tax
Carry-forward losses: Track and apply tax losses properly

Personal Income Tax (For employees):

PAYE calculations: Automatic monthly tax deductions
EA forms: Employee annual tax statements
Bonus calculations: Proper tax on bonuses and commissions
Benefits tracking: Non-cash benefits valuation

Other Tax Obligations:

Real Property Gains Tax (RPGT):

Property disposal tracking: When selling business property
Rate calculations: Based on holding period and entity type
Form reporting: Automatic RPGT form generation

Stamp Duty:

Document tracking: Monitor stamped documents
Calculation assistance: For agreements and contracts
Compliance alerts: Remind about stamping deadlines

Transfer Pricing (For larger businesses):

Related party transactions: Track transactions with related companies
Documentation: Maintain required transfer pricing documentation
Compliance monitoring: Alert for transfer pricing thresholds

Best Practices for Tax Compliance:

Monthly Tasks:

Review tax provisions and adjustments
Ensure proper SST calculations
Check employee tax deductions
Monitor withholding tax obligations

Quarterly Tasks:

Review overall tax position
Plan for upcoming payments
Assess any new tax obligations
Update tax planning strategies

Annual Tasks:

Prepare income tax returns
Reconcile all tax accounts
Plan for following year
Review tax efficiency opportunities

Common Compliance Mistakes BigLedger Prevents:

Incorrect tax rates: Automatic rate application
Missing deadlines: Built-in compliance calendar
Calculation errors: Automated tax computations
Incomplete records: Comprehensive audit trails
Wrong classifications: Guided transaction categorization

Malaysian Business Practices

Q: How does BigLedger handle Malaysian payment terms and practices?

A: BigLedger is designed around actual Malaysian business practices and cultural norms:

Common Malaysian Payment Terms:

Cash on Delivery (COD):

Very common for small businesses
BigLedger tracks COD orders and payments
Integration with delivery tracking
Automatic payment recording upon delivery

30-60-90 Day Terms:

Government contracts: Often 30-90 days
Corporate clients: Usually 30-60 days
SME clients: Often immediate to 30 days
BigLedger tracks all terms and sends automatic reminders

Advance Payments:

Common in Malaysian business culture
BigLedger handles deposits and progress billing
Tracks remaining balances
Applies advances to final invoices

Cultural Considerations Built Into BigLedger:

Relationship-Based Business:

Customer notes: Track personal details and preferences
Flexible terms: Easy to adjust terms for valued customers
Payment grace periods: Handle relationship-based flexibility
Gentle reminders: Professional but culturally appropriate collections

Multi-Language Support:

Bahasa Malaysia: Full interface and reports
English: Complete functionality
Chinese: For Chinese-speaking customers
Tamil: For Indian community businesses

Malaysian Business Calendar:

Public holidays: Automatic recognition of Malaysian holidays
Ramadan considerations: Adjusted business schedules
Chinese New Year: Extended holiday period handling
School holidays: Seasonal business pattern recognition

Regional Practices:

Peninsular Malaysia:

Standard business practices
Banking system integration
Government compliance focus

East Malaysia (Sabah/Sarawak):

Additional time zones handled
Regional banking variations
Local compliance requirements

Urban vs Rural:

Urban areas: More electronic payment methods
Rural areas: Higher cash transaction handling
Mixed approach: Flexibility for different customer types

Q: Can BigLedger handle different Malaysian business structures?

A: Yes! BigLedger supports all Malaysian business entity types:

Sole Proprietorship:

Simple setup: Minimal configuration required
Personal tax integration: Links business and personal income
Bank account handling: Business and personal account separation
Simplified reporting: Basic profit/loss and cash flow

Partnership:

Partner management: Track individual partner contributions
Profit sharing: Automatic distribution calculations
Partner withdrawals: Track drawings and capital accounts
Partnership tax: Proper tax allocation to partners

Sendirian Berhad (Sdn Bhd):

Corporate compliance: Full corporate accounting standards
Director management: Track director transactions and loans
Share capital: Manage share issuance and transfers
Dividend tracking: Record dividend declarations and payments
Corporate tax: Full corporate tax compliance

Berhad (Bhd) - Public Company:

Advanced reporting: Public company reporting requirements
Shareholder management: Handle large shareholder bases
Securities compliance: Track share transactions
Complex structures: Handle subsidiary relationships

Limited Liability Partnership (LLP):

Hybrid structure: Combines partnership and corporate features
Member management: Track member contributions and withdrawals
Limited liability: Proper accounting for limited liability structure
Professional practices: Ideal for professional service firms

Special Business Structures:

Bumiputera Companies:

Equity tracking: Monitor Bumiputera shareholding percentages
Compliance reporting: Government contract compliance
Special benefits: Track utilization of Bumiputera incentives

Foreign Companies:

Branch offices: Handle Malaysian branch operations
Representative offices: Limited activity tracking
Regional headquarters: Multi-country consolidation

Social Enterprises:

Mission tracking: Monitor social impact alongside profits
Grant management: Track government and foundation grants
Stakeholder reporting: Multiple stakeholder report formats

Setup Assistance by Business Type:

New Business Setup:

Guided setup wizard for each entity type
Malaysian compliance checklist
Required registration tracking
Initial chart of accounts setup

Conversion Support:

Sole Prop to Sdn Bhd: Common growth transition
Partnership to LLP: Risk management transition
Entity restructuring: Handle complex reorganizations

Multi-Entity Management:

Group companies: Manage related companies
Holding structures: Parent-subsidiary relationships
Consolidated reporting: Group financial statements

Getting Help with Malaysian Requirements

Q: Does BigLedger provide support for Malaysian accounting standards?

A: Absolutely! BigLedger is built specifically for Malaysian accounting and business requirements:

Malaysian Accounting Standards Support:

Financial Reporting Standards (FRS):

Complete implementation: All current FRS requirements
Automatic updates: When standards change
Private Entity standards: Simplified FRS for smaller companies
Transition support: Help moving between different standards

Malaysian Financial Reporting Standards (MFRS):

IFRS compliance: For companies requiring international standards
Dual reporting: Both Malaysian and international formats
Conversion assistance: Move from FRS to MFRS when required

Built-in Malaysian Features:

Chart of accounts: Standard Malaysian business chart of accounts
Tax calculations: All Malaysian tax types and rates
Compliance calendars: Malaysian filing deadlines and requirements
Local terminology: Uses familiar Malaysian business terms

Professional Support Available:

Local Expertise:

Malaysian accountants: Support team includes Malaysian CPA
Regional knowledge: Understanding of local business practices
Language support: Support in Bahasa Malaysia and English
Cultural understanding: Appreciation of Malaysian business culture

Training and Implementation:

On-site training: Available throughout Malaysia
Industry-specific training: Tailored to your business type
Certification programs: Become a BigLedger power user
Ongoing education: Regular updates on new features and regulations

Partner Network:

Certified consultants: Local implementation partners
Accounting firms: Integration with local accounting practices
Industry specialists: Experts in specific business sectors

Q: Can BigLedger help me find a Malaysian accountant?

A: Yes! BigLedger has an extensive network of Malaysian accounting professionals:

BigLedger Partner Network:

Certified Accountants:

MIA members: Malaysian Institute of Accountants certified
BigLedger certified: Trained specifically on BigLedger features
Industry expertise: Specialists in different business sectors
Regional coverage: Partners throughout Malaysia

Accounting Firms:

Small practice firms: For small business needs
Medium-sized firms: For growing companies
Large firms: For complex corporate requirements
Specialized firms: Industry-specific expertise

How We Connect You:

Needs assessment: We understand your specific requirements
Partner matching: Connect you with appropriate local accountants
Introduction facilitation: Smooth introduction process
Ongoing support: Continue to support the relationship

Types of Accounting Support Available:

Basic Bookkeeping:

Transaction recording: Daily bookkeeping assistance
Bank reconciliation: Monthly reconciliation services
Basic reporting: Standard financial reports
Tax preparation: Simple tax return preparation

Advanced Accounting Services:

Financial analysis: Detailed business performance analysis
Tax planning: Strategic tax optimization
Audit preparation: Prepare for external audits
Business advisory: Growth and expansion advice

Specialized Services:

Industry expertise: Manufacturing, retail, services, etc.
Compliance: SST, income tax, LHDN requirements
International: Multi-country operations support
Technology: Advanced BigLedger feature utilization

Partnership Benefits:

Seamless integration: Accountant can access your BigLedger data
Real-time collaboration: Work together on your books
Efficient communication: Share reports and data instantly
Cost effective: Reduce accountant time through organized data

Finding the Right Match:

Location preferences: Local vs remote service options
Budget considerations: Different service levels and pricing
Industry experience: Relevant sector knowledge
Language preferences: Bahasa Malaysia, English, Chinese, Tamil
Service scope: Basic compliance vs comprehensive advisory

This FAQ addresses the specific needs of Malaysian businesses using BigLedger. For more detailed information about any compliance requirement, please consult with a qualified Malaysian accountant or contact our local support team.