TaxSavvyMY

Audit exemption phase 3 from 2027

What changes for audit exemption from 2027?

The situation

For financial periods starting from 1 January 2027, the limits rise to revenue of RM3 million, total assets of RM3 million and 30 employees. Any 2 of 3 must be met.

The law

  • Sec 267, Companies Act 2016 and SSM Practice Directive 10/2024: Registrar may exempt qualifying private companies from audit; phased thresholds from 2025

What it means for you

A company that fails the 2026 test may pass in 2027. The test still covers the current and two prior years against the phase limits. Check SSM for any amendment before you rely on it.

What to do

  1. Project your 2027 figures.
  2. Test 2025 to 2027 figures against phase 3 limits.
  3. Plan the audit or unaudited accounts.
  4. Confirm with your secretary.

We can do this for youAnnual return, financial statements lodgement and audit exemption check: MYR 1,500

Related