COMPLIANCE

New SSM Audit Exemption Rules (Part 1)

New Rules:

• To reduce compliance costs for SMEs and encourage entrepreneurship
• SSM has introduced new Audit Exemption rules
• Effective 1 January 2025
• The audit exemption criteria for Sdn. Bhd. companies will be more flexible than before

Audit Exemption Criteria

• The company must satisfy any 2 out of the following 3 conditions for the current year and the previous two financial years:
  1. Annual revenue does not exceed RM3 million
  2. Total assets do not exceed RM3 million
  3. Full-time employees do not exceed 30
• Meeting any 2 of the 3 conditions qualifies the company for audit exemption.

Phased Implementation

• Phase 1 (2025):
  • Annual revenue ≤ RM1 million
  • Total assets ≤ RM1 million
  • Full-time employees ≤ 10
• Phase 2 (2026):
  • Annual revenue ≤ RM2 million
  • Total assets ≤ RM2 million
  • Full-time employees ≤ 20
• Phase 3 (2027 onwards):
  • Annual revenue ≤ RM3 million
  • Total assets ≤ RM3 million
  • Full-time employees ≤ 30

Summary

• The audit exemption thresholds are introduced in phases
• From 2025 to 2027
• Companies that satisfy 2 out of the 3 criteria for the current year and the previous two financial years may qualify for audit exemption.