Importance of Supporting Documents for Companies in Malaysia
As businesses in Malaysia move towards stricter compliance, digitalisation, and e-Invoicing, supporting documents play a critical role in ensuring transparency, accuracy, and compliance with statutory and tax requirements. Proper documentation is not only essential for audits and tax deductions, but also protects companies from penalties and disputes.
Overview: What Are Supporting Documents?
Supporting documents are official records that substantiate business transactions recorded in the accounting system. These documents provide evidence that a transaction has genuinely occurred and is recorded accurately.
Common supporting documents include:- Tax invoices and receipts
- Contracts and agreements
- Payment vouchers and bank statements
- Delivery orders and goods received notes
- Payroll records, EPF, SOCSO, and EIS submissions
Why Are Supporting Documents Important?
✅ Tax Deductibility
Under Malaysian tax laws, expenses are only tax-deductible if they are supported by valid documents such as tax invoices. Without proper documentation, expenses may be disallowed by LHDN, resulting in higher tax payable.
✅ Audit & Compliance Purposes
✅ Audit & Compliance Purposes
Auditors rely on supporting documents to verify the accuracy and validity of financial statements. Inadequate documentation may lead to audit qualifications or additional audit findings.
✅ LHDN & Regulatory Requirements
✅ LHDN & Regulatory Requirements
LHDN, EPF, SOCSO, and other authorities may request supporting documents during audits or reviews. Failure to produce these documents can result in penalties, fines, or additional assessments.
✅ Fraud Prevention & Internal Control
Supporting documents help companies detect errors, prevent fraud, and strengthen internal controls by ensuring all transactions are properly authorised and traceable.
📄 Key Supporting Documents Required in Malaysia
For Accounting & Tax:
- Tax invoice (instead of quotation or proforma invoice)
- Credit notes and debit notes
- Self-billed e-Invoices (where applicable)
For Payroll & Statutory:
- Employment contracts
- Payslips
- EPF, SOCSO, and EIS contribution records
For Assets & Expenses:
- Asset purchase invoices
- Maintenance and repair invoices
- Insurance and loan agreements
- Tax invoice (instead of quotation or proforma invoice)
- Credit notes and debit notes
- Self-billed e-Invoices (where applicable)
For Payroll & Statutory:
- Employment contracts
- Payslips
- EPF, SOCSO, and EIS contribution records
For Assets & Expenses:
- Asset purchase invoices
- Maintenance and repair invoices
- Insurance and loan agreements
Supporting Documents
With the implementation of e-Invoicing in Malaysia, supporting documents must align with e-Invoice records submitted to LHDN. Any mismatch between invoices, payments, or descriptions may trigger queries or compliance issues.
Conclusion
Supporting documents are the backbone of a company’s financial and tax compliance in Malaysia. As enforcement and digital reporting increase, businesses must ensure that all transactions are properly documented, accurate, and readily available. Maintaining good documentation practices not only ensures compliance but also strengthens financial management and business credibility.
𝐕𝐢𝐬𝐢𝐭 𝐮𝐬
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𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
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An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
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𝐕𝐢𝐬𝐢𝐭 𝐮𝐬
Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients
Website www.thks.com.my
Facebook https://bit.ly/42XKWsk
Instagram https://bit.ly/42Uqf0e
Linkedin https://bit.ly/3EH885M
𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭,𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
Website www.ktp.com.my
Instagram https://bit.ly/3Rko5kN
Linkedin https://bit.ly/3sapf4l
Telegram http://bit.ly/3ptmlpn
𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞
An internal community for our colleagues on work and leisure.
Tiktok http://bit.ly/3u9LR6Q
Youtube http://bit.ly/3ppmjyE
Facebook http://bit.ly/3ateoMz
Instagram https://bit.ly/3jZpKLo
𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫
An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.
Instagram https://bit.ly/3u2PxHg
Facebook http://bit.ly/3rPxz9o
#KTP #Thk
#Myktp
#ktplifestyle
#ktpcareer
#24years
