- Definition of dormant companies: it has been dormant (does not carry on business and there is no accounting transaction occurred) from the time of its incorporation or throughout the current financial year and in the immediate preceding financial year
- Audit exempt for dormant company incorporated on or after 31 January 2017
- For the dormant company incorporated on or before 30 January 2017, audit exempt take effect on the financial statement with annual period commencing on or after 1 September 2017
- Definition of zero-revenue companies: It doesn’t have any revenue and its total assets does not exceed RM300,000 for three financial years (current year and immediate past two financial year)
- Audit exempt for zero-revenue companies’ financial statements with annual periods commencing on or after 1 January 2018.
- Definition of threshold-qualified companies:
|a)||it has revenue not exceeding RM100,000 during the current financial year and in the immediate past two (2) financial years|
|b)||its total assets in the current Statement of Financial Position (FS) does not exceed RM300,000 and in the immediate past two (2) financial years; and|
|c)||it has, at the end of its current financial year and in each of its immediate past two (2) financial years end, not more than five (5) employees.|
- Audit exempt for threshold-qualified companies’ financial statements with annual periods commencing on or after 1 July 2018.