Aj Isma & Partners Group

📢 Important Updates from the Government – What the Public & SMEs Should Know

Prime Minister Datuk Seri Anwar Ibrahim has announced several key decisions to ease the burden on businesses, especially SMEs and MSMEs:

🧾 E-Invoicing

Mandatory e-invoicing for companies with annual sales RM1mil–RM5mil has been postponed by 1 year

No penalties during the extended transition period

Reason: high implementation costs & readiness concerns

Consolidated e-invoicing extended to the retail & building materials sectors

🏠 Sales & Services Tax (SST) – Rental Services

SST on rental services reduced from 8% to 6%

MSMEs with turnover below RM1.5mil are fully exempted

Government estimates revenue loss of RM500 million annually to help businesses

📜 Stamp Duty

Voluntary Stamp Duty Disclosure Programme extended for another 6 months

New period: 1 Jan – 30 June

💰 Income Tax Refunds

RM22.5 billion income tax refunds already paid

3.5 million backlog cases resolved last year

Target:

YA 2023: settle by Q1

YA 2024: settle by end of the year

Government acknowledges delays seriously affect SME cash flow

🌾 Agriculture Sector

Tax exemptions for animal feed, fertiliser & insecticide manufacturers will be limited

Aim: reduce agricultural production costs

📌 The Prime Minister stressed that the government is listening to public and SME concerns, especially where delayed refunds and compliance costs affect survival and cash flow.

💬 What do you think?
Are these measures enough to support small businesses and improve tax administration?

👉 Share this to help others stay informed.

source: https://www.thestar.com.my/news/nation/2026/01/06/e-invoicing-deadline-for-rm1mil-rm5mil-firms-extended

📢 BREAKING: LHDN Announces No Penalties in First Year of New Stamp Duty System! 🇲🇾

PUTRAJAYA (Dec 21): The Inland Revenue Board of Malaysia (LHDN) has confirmed that no penalties will be imposed during the first year of the new Self-Assessment Stamp Duty System (STSDS) for applications submitted between 1 January and 31 December 2026. This is to help duty payers adapt to the new regime and encourage voluntary compliance.
The Star

✅ The concession covers:
• Errors in the Stamp Duty Return Form (BNDS) submissions
• Inaccurate information affecting the stamp duty assessment
• Any offences identified under Subsection 72D(2) of the Stamp Act 1949 during the first year of implementation.
The Star

🖥️ Early Access & Preparation:
The new e-Stamp Duty System is already open for early access via the MyTax portal — allowing users to test the system and prepare before full implementation.
Hasil

📅 About STSDS:
Starting 1 Jan 2026, all stamp duty transactions will transition from the current STAMPS platform to the new Self-Assessment system. Under STSDS, duty payers or their appointed agents will be responsible for self-assessing and paying stamp duty online.

📞 Need Help? Contact the HASiL Contact Centre at 03-8911 1000 / +603-8911 1000, use HASiL Live Chat, or submit feedback through the official HASiL portal.
Hasil

📌 This concession period is an important step to ease the transition to digital self-stamping and help everyone get familiar with the new system.

Artificial Intelligence (AI) is transforming how organizations work — from chatbots and dashboards to generative AI tools that boost speed and productivity. But there’s a growing concern many businesses overlook: Shadow AI.

🔍 What is Shadow AI?
Shadow AI happens when employees use AI tools without approval from IT, security, or compliance teams — similar to the old problem of shadow IT. While it may improve short-term productivity, it creates serious long-term risks.

⚠️ Why is Shadow AI dangerous?
• Data leakage & IP exposure – confidential company data may be shared unknowingly
• Compliance violations – AI tools may breach laws and frameworks like NIST AI RMF or the EU AI Act
• Cybersecurity threats – unapproved tools can introduce malware or backdoors
• AI hallucinations & bias – unreliable outputs lead to poor decisions

📉 Studies show that while 26% of organizations invest in AI, only 4% achieve meaningful ROI, largely due to risks and inefficiencies caused by uncontrolled Shadow AI usage.

✅ So, what should organizations do?
✔ Conduct AI usage audits to detect unauthorized tools
✔ Establish clear AI policies and governance frameworks
✔ Control access using identity & access management (IAM)
✔ Train employees on ethical and responsible AI use
✔ Integrate AI risks into Enterprise Risk Management (ERM)

🧭 The takeaway
AI can deliver massive value — but only if used responsibly. Without governance, Shadow AI exposes organizations to security breaches, legal penalties, and reputational damage.

💡 A strong AI governance roadmap, regular audits, and employee awareness are key to unlocking AI’s full potential — safely and sustainably.

👉 Does your organization have control over how AI is being used today?

source : https://www.isaca.org/resources/news-and-trends/industry-news/2025/the-rise-of-shadow-ai-auditing-unauthorized-ai-tools-in-the-enterprise

📢 Good News for SMEs & Small Business Owners!

The government has announced that the e-Invoicing exemption threshold will be increased from RM500,000 to RM1 MILLION starting in 2026 🎉

Prime Minister Anwar Ibrahim said the decision was made after listening directly to feedback from small business owners who are concerned about the cost and pressure of implementing e-Invoicing.

👉 What does this mean?
✅ Small businesses with annual turnover below RM1 million will NOT be required to implement e-Invoicing
✅ Lower compliance costs for SMEs
✅ A more realistic and orderly rollout of the e-Invoicing system

The Prime Minister also acknowledged public frustration over delayed tax refunds, especially among taxpayers who file and pay on time.

💰 Immediate action by the government:
🔹 Tax refund allocation increased from RM2 billion to RM4 billion in December 2025
🔹 Faster refunds, with priority given to small businesses

This announcement was made during the Sentuhan Madani Bersama Rakyat Sabah program at Sabah International Convention Centre.

👏 A positive move that shows the government is listening and supporting SMEs.

💬 Do you think this will help small businesses?
Share your thoughts in the comments 👇

🚨 Delayed Tax Refunds Are Hurting Malaysian Businesses 🚨

Many businesses in Malaysia are facing years of delay in getting their tax refunds from LHDN — and it’s causing serious cash flow problems.

💸 Why is this a big issue?
When refunds are delayed:

Businesses struggle to pay staff & suppliers

Expansion plans get postponed

Some companies are forced to take high-interest loans just to survive

Tax experts warn this also reduces trust in the tax system and makes financial planning unpredictable.

📌 What businesses can do to speed up refunds:
✅ Use e-Filing (refunds usually within 30 days vs 90 days manual)
✅ Ensure all documents are complete & accurate
✅ Keep bank details updated in LHDN system
✅ Monitor refund status via LHDN online portal
✅ Submit a formal follow-up letter if refunds are delayed

⚖️ Did you know?
Under Section 111D of the Income Tax Act 1967, businesses are entitled to 2% annual compensation if refunds are delayed (and the delay is not the taxpayer’s fault).

⏳ Refunds are considered late if:

More than 90 days (e-Filing)

More than 120 days (manual filing)

🏛️ Government response:

RM4 billion allocated in 2025 to clear refund backlogs

“First-in, first-out” approach to process refunds faster

📊 How to avoid overpaying tax in the first place:
1️⃣ Estimate tax carefully (aim at least 85% accuracy)
2️⃣ Revise CP204 estimates in Month 6, 9 & 11
3️⃣ Avoid overpaying “just in case” — excess tax earns zero interest
4️⃣ Consult a tax professional for better planning

📣 Some businesses claim refunds only came after 4 years — while underpayments are flagged quickly.

👉 Your money matters. Stay proactive, stay informed, and protect your business cash flow.



source : https://www.nst.com.my/business/corporate/2025/12/1337234/delayed-tax-refunds-drive-firms-high-interest-loans