Licensed Tax Agent in Malaysia: What They Do and Why Your Business Needs One
If you own a business in Malaysia, you may have heard the term Licensed Tax Agent. However, many business owners are unsure what a Licensed Tax Agent does, how they differ from an accountant, and whether engaging one is necessary.
This guide explains the role of a Licensed Tax Agent in Malaysia, the services they provide, and how they can help individuals and businesses remain compliant with Malaysian tax laws.
What Is a Licensed Tax Agent?
A Licensed Tax Agent is a professional who has been approved and licensed by the Minister of Finance under Section 153 of the Income Tax Act 1967 to act on behalf of taxpayers in matters relating to Malaysian income tax.
Licensed Tax Agents are authorised to:
- Prepare and submit tax returns.
- Represent taxpayers in dealings with LHDN.
- Provide tax advisory services.
- Assist with tax audits and investigations.
- Advise on tax planning.
- Apply for tax rulings where appropriate.
Who Needs a Licensed Tax Agent?
Although engaging a Licensed Tax Agent is not mandatory, many businesses choose to appoint one because Malaysian tax legislation is complex and constantly evolving.
A Licensed Tax Agent is particularly valuable for:
- Sdn Bhd companies
- SMEs
- Growing businesses
- Companies with foreign shareholders
- Businesses undergoing restructuring
- Employers with payroll tax obligations
- Companies selected for an LHDN audit
Licensed Tax Agent vs Accountant
Many people assume that every accountant is a Licensed Tax Agent.
This is not necessarily true.
| Accountant | Licensed Tax Agent |
|---|---|
| Prepares accounting records and financial statements | Licensed by the Minister of Finance under Section 153 of the Income Tax Act 1967 |
| May prepare tax computations | Authorised to act on behalf of taxpayers before LHDN |
| Accounting expertise | Specialist knowledge in Malaysian tax legislation and compliance |
| May not represent clients in all tax matters | Can represent taxpayers in tax audits, investigations and correspondence with LHDN |
When choosing a tax adviser, it is important to verify whether the individual is a Licensed Tax Agent.
Services Provided by a Licensed Tax Agent
A Licensed Tax Agent may assist with:
- Corporate income tax
- Personal income tax
- Tax planning
- Tax advisory
- Form C preparation
- CP204 and CP204A submissions
- Tax estimates
- Tax audit and investigation support
- LHDN correspondence
- Tax incentives
- Withholding tax
- Real Property Gains Tax (where applicable)
Why Should Businesses Engage a Licensed Tax Agent?
Working with a Licensed Tax Agent can help businesses:
- Reduce tax compliance risks.
- Meet statutory filing deadlines.
- Maximise legitimate tax deductions and incentives.
- Respond professionally to LHDN enquiries.
- Reduce the risk of penalties.
- Plan taxes more effectively.
Professional tax advice can also help business owners make informed decisions before entering into significant transactions.
Frequently Asked Questions
Is every accountant a Licensed Tax Agent?
No. Only individuals licensed by the Minister of Finance under Section 153 of the Income Tax Act 1967 may act as Licensed Tax Agents.
Is a Licensed Tax Agent required by law?
No. However, many businesses appoint one because of the complexity of Malaysian tax legislation.
Can a Licensed Tax Agent represent me before LHDN?
Yes. A Licensed Tax Agent may represent taxpayers in tax matters within the scope permitted by Malaysian tax legislation.
How do I verify whether someone is a Licensed Tax Agent?
You may request the person’s licence details or verify their status through the relevant official channels where available.
About CLPC Advisors
At CLPC Advisors, our tax team includes Licensed Tax Agents, Chartered Accountants, and Licensed Company Secretaries.
We assist businesses with:
- Corporate tax compliance
- Tax planning
- Tax advisory
- Form C
- CP204
- Tax audits
- LHDN correspondence
- Tax investigations
- Company incorporation
- Accounting and bookkeeping
- Corporate secretarial services
Whether you are starting a new business or managing an established company, our team is committed to providing practical and reliable tax advice tailored to your business needs.
Last Updated: 14 July 2026
Disclaimer: This article is intended for general informational purposes only and does not constitute professional tax advice. Professional advice should be obtained based on your specific circumstances.