Professional Hand Shake

Professional and Other Services

Many companies engaged in professional and other services play a vital role in the economic and cultural life of Malaysia. These include companies in professional services such as architecture, engineering, accountancy, law, human resources, management services, etc. Philanthropic and religious organisations also abound to cater to the charitable and religious needs of the citizenry such as charities, churches and associations.   

Malaysia is well developed in the professional services sector but highly regulated in certain sub-sectors to ensure a high standard of professionalism.  Generally, Malaysian professional expertise is well recognized and admired in the region. Professional services in Malaysia comprise accounting, architectural, engineering, legal, employment, advertising, surveying, security, and management consultancy services.

In the accounting and consulting firm sector, Crowe Malaysia is the 5th largest accounting firm in Malaysia. Crowe Malaysia has 13 offices, employs over 1,200 staff, and serves mid-to-large companies. Crowe Global ranks as the 8th largest accounting network in the world, and has over 250 independent accounting and advisory firms in 130 countries.

The many types of engineering firms in Malaysia would include AWC Berhad which provides integrated facilities management (IFM) and electrical and mechanical engineering (M&E) services, Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) which is a marine and heavy engineering solutions provider, and McDermott which is a provider of technology, engineering and construction solutions. 

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Complexities of the industry from accountancy and tax angles

Companies in the service industry are generally less complex but care will still be needed on revenue recognition and compliance with the Service Tax Act. From the accounting angle, trade receivables will feature prominently in the balance sheet and it is necessary for this asset group to be accurately stated. From the tax angle, Service Tax compliance is especially difficult with borderline cases and exports of services. Potentially, there may be differences in terms of accounting and tax treatment e.g. certain mobilization/upfront fees received where the amount will be treated as deferred income for accounting purposes if services have yet to be performed whereas for tax, the money received upfront may be taxable.
How can we help?
Audit
Tax
Consulting
Audit

In addition to performing a statutory audit, we are able to assist companies in this sector to adopt the correct accounting policies and good internal controls that are appropriate to their circumstances. These policies include those relating to recognition of income, treatment of fees received in advance, deferred taxation due to temporary differences, etc. We can also advise on complex accounting transactions that involve many parties, complicated contractual arrangements and overseas arrangements.

Professional groups with operations in many parts of Malaysia and overseas will find that our network of 13 branches in Malaysia and 250 Crowe firms throughout the world can greatly facilitate group audits.

 

For more details of our audit services, please click here

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Tax

From the tax angle, we can assist to plan and apply for tax incentives for eligible companies that are engaged in promoted activities or exports. This involves understanding the type of tax incentives that such companies are eligible for and how best to strategise in order to successfully apply for the tax incentive. In this regard, we have extensive experience with outstanding results for our clients. Group relief may be used to reduce taxes. In the areas of tax compliance including preparation of tax computations and complying with all other tax rules, we have a large team of tax professionals who are able to offer a broad range of specialised services to serve our clients. These services include maximising the claims of operating expenses eg bad and doubtful debts, planning for submission of tax estimates to the tax authorities, resolving grey tax issues, advising on withholding tax, dealing with the tax authorities, etc. Service Tax, being a large potential risk area for services companies can get assistance from our Indirect Tax division which has the experts and thus well poised to provide this service.  

 

For more details of our tax services, please click here

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Consulting

We have a wide variety of specialised consulting services that can assist your corporate growth and enhance your corporate health. You can find more details in the following links:   

Risk Advisory  Corporate Advisory Service  Growth Consulting

We are also experienced with transformation plans to assist companies to transform and adapt to the digital economy, restructure to new models of business, exploit opportunities in a changing economy, harness the capabilities of talent and assist in all aspects of change management.

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