Starting from 2025, the corporate tax return (Form e-C) will include a new question: “Has your company implemented tax governance program?”

Tick “No” and the company might appear as high-risk !!!
Tick “Yes” without proper governance and you risk penalties for a wrong declaration !!!!

What is TCGF?

The Inland Revenue Board of Malaysia (IRBM) introduced the Tax Corporate Governance Framework (TCGF) to guide companies in managing tax risks.

It is built on six principles :

Tax strategy established
Applied comprehensively
Responsibility assigned
Governance documented
Testing performed
Assurance provided

Benefits of TCGF

Companies that adopt TCGF can enjoy:
Reduced tax audit scrutiny
Faster refunds
Dedicated IRBM officer
Lower penalties for voluntary disclosure

Who Should Join?

The programme is meant for PLCs, GLCs, SOEs, and large companies with turnover above RM100 million.

SMEs are not the main target, but adopting some principles can still strengthen compliance and reputation.

My Tax Opinion

For SMEs, ticking “No” may be safer unless proper documentation is in place and verified by an auditor, tax agent, or independent reviewer.

Read the full content in our blog on TCGF
https://lnkd.in/gpVQKed5