To alleviate the financial burden of conducting audits for micro and small private companies while ensuring financial accountability, the threshold criteria for audit exemption will be introduced through a phased implementation over the next three years.
Current Criteria
- Dormant Companies
The company must fulfill any one of the following criteria：
– Companies that have been dormant since incorporation
– Dormant in the current financial year and in the immediate past financial year qualify for audit exemption.
- Zero-Revenue Companies
Current year and immediate past two financial year
– Revenue = 0
– Total Assets ≤ RM300,000
- Threshold-Qualified Companies
Current financial year and in the immediate past two financial years
– Revenue ≤ RM100,000
– Total Assets ≤ RM300,000
– Not more than 5 employees.
Implementation
2025（Phase 1）
Financial period：Commencing on or after 1st January 2025 until 31 December 2025
Submission year：Beginning from 1 January 2026
Thresholds：
– Turnover：RM1,000,000
– Assets：RM1,000,000
– Number of Employees：10
2026（Phase 2）
Financial period：Commencing on or after 1st January 2026 until 31 December 2026
Submission year：Beginning from 1 January 2027
Thresholds：
– Turnover：RM2,000,000
– Assets：RM2,000,000
– Number of Employees：20
2027（Phase 3）
Financial period：Commencing on or after 1st January 2027
Submission year：Beginning from 1 January 2028
Thresholds：
– Turnover：RM3,000,000
– Assets：RM3,000,000
– Number of Employees：30