When can a company apply for audit exemption?

In Malaysia, a company can apply for audit exemption if it meets certain criteria outlined by the Companies Commission of Malaysia (SSM).

These criteria include:

1) Dormant Companies (Effective For FYE After 31/01/2017)

• (a) it has been dormant from the time of its incorporation; or
• (b) it is dormant throughout the current financial year and in the immediate preceding financial year.

2) Zero-Revenue Companies (Effective For FYE After 31/12/2017)

• (a) it does not have any revenue during the current financial year;
• (b) it does not have any revenue in the immediate past two financial years; and
• (c) its total assets in the current Statement of Financial Position (FS) does not exceed RM300,000 as well as in the FS of the immediate past two financial years.

3) Threshold-Qualified Companies (Effective For FYE After 30/06/2018)

• (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, not more than five (5) employees.

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