Licensed Tax Agent: What Is Their Role?

Introduction

Many taxpayers seek professional help to prepare and submit their tax forms. But not everyone offering tax help is a licensed tax agent.

This article explains who a licensed tax agent is, how approval is granted, and why it matters for you to know.

Who is a licensed tax agent?

A licensed tax agent is an individual approved to act as a tax agent under subsection 153(3) of the Income Tax Act 1967. Applications for this approval are made to the Ministry of Finance Malaysia.

The role of a tax agent includes preparing and submitting return forms, as well as representing taxpayers in dealings with HASiL.

In other words, we know the approval route is under s.153(3) of the ITA via an application to the Ministry of Finance. But the full requirements such as academic qualifications, experience, examinations and fees have not been confirmed at this review.

Tax agent vs unlicensed consultant

It is important to distinguish:

• Licensed tax agent — approved under s.153(3) of the ITA.
• Unlicensed tax consultant — offers tax advice or help without approval as a tax agent.

Letter of appointment in investigations

In a tax investigation, if you appoint a licensed tax agent or a qualified adviser, the letter of appointment must be submitted to LHDNM (Inland Revenue Board of Malaysia). This is based on HASiL's Tax Investigation Framework 2023.

Why does it matter to you?

Knowing whether someone is a licensed tax agent helps you make a more informed decision before appointing someone to handle your tax affairs. It is also relevant when you need to be represented in official matters such as an investigation.

Frequently Asked Questions (FAQ)

Q. What is a licensed tax agent? A. An individual approved to act as a tax agent under subsection 153(3) of the Income Tax Act 1967, via an application to the Ministry of Finance Malaysia.

Q. What is the role of a tax agent? A. Among other things, preparing and submitting return forms, as well as representing taxpayers in dealings with HASiL.

Q. How is tax agent approval granted? A. Via an application to the Ministry of Finance under s.153(3) of the ITA. The full approval requirements are still this item still awaits official confirmation from HASiL — check again with HASiL before deciding. at this review.

Q. Is an unlicensed tax consultant the same as a tax agent? A. No — a licensed tax agent is approved under s.153(3) of the ITA. An unlicensed tax consultant is different.

Q. What should I do if I appoint a tax agent in an investigation? A. The letter of appointment of a licensed tax agent/qualified adviser must be submitted to LHDNM (Tax Investigation Framework 2023).

Glossary

• Licensed tax agent — an individual approved under s.153(3) of the ITA.
• ITA 1967 — Income Tax Act 1967 (Akta Cukai Pendapatan 1967).
• LHDNM/HASiL — Lembaga Hasil Dalam Negeri Malaysia (Inland Revenue Board of Malaysia).
• Ministry of Finance — the party that receives tax agent approval applications.
• Letter of appointment — document confirming the appointment of an agent/adviser.