Definition Of Sme In Malaysia Lhdn

Detailed definition of the category namely micro small and medium is as follows.

Definition of sme in malaysia lhdn. The definition of an sme is based on the national sme s definition as follows. The circular on new definition of smes the circular is to inform financial institutions to use the revised definition for smes effective 1 january 2014 for statistical purposes eligibility criteria of smes for government assistance and exclusions. Malaysia is a central coordinating agency under the ministry of international trade and industry malaysia that formulates overall policies and strategies for small and medium enterprises smes and coordinates the implementation of sme development programmes across all related ministries and agencies. Generally sme refer to resident companies that has a paid up capital in respect of ordinary shares of rm2 5mil and less.

In addition present definitions focus mainly on smes in the manufacturing sector. Different agencies define smes based on their own criteria usually benchmarking against annual sales turnover number of full time employees or shareholders funds. Sme corporation malaysia sme corp. A business is considered as sme if it meets one of the two eligibility criteria.

Effective from ya 2009 the definition of a sme has been re defined as a company resident in malaysia which has a paid up capital of ordinary shares of rm2 5 million or less at the beginning of the basis period of a ya provided. It acts as the central point of reference for research. Not more than fifty per cent of the paid up capital in respect of ordinary shares of the company is directly or indirectly owned by a related company. Lhdn s statement via letter on cp204 for smes lhdn has made statements on the above that all companies to submit its estimate tax payable via form cp204 notifying the lhdn of its sme status with a zero amount of tax payable to avoid any possible unnecessary penalty due to administrative issues even though these companies are not required to submit cp204.

The sme definition is applied to all relevant stakeholders implementing sme development initiatives. A sme is defined as a company resident in malaysia which has a paid up capital of ordinary shares of rm2 5 million or less at the beginning of the basis period of a ya provided. Fsa ifsa dfia. 1 1 presently there is no common definition of small and medium enterprises smes in malaysia.

2 definition by lhdn lembaga hasil dalam negeri malaysia tax authority sme is defined as a company resident in malaysia which has a paid up capital of rm2 5 million or less and is not related to any company with paid up capital of more than rm2 5 million annual sales turnover not more than rm5 million. Annual sales or the number of full time employees whichever is lower. Lembaga hasil dalam negeri.