CY Chong & Co.

e-Invoice update for interim relaxation period - published on 20 April 2026

During the interim relaxation period, the following are allowed:

1. Consolidated e-Invoice allowed for all activities and transactions

2. Consolidated self-billed e-invoice allowed for all self-billed circumstances

3. Any details are allowed for “Description of Product or Service” – No receipt numbers required

4. Consolidated e-Invoice allowed even if buyer requests an e-invoice

5. There will be no prosecution for non-compliance with e-Invoice regulations, provided taxpayers comply with the requirement of consolidated e-Invoice.

The Hire Purchase (Amendment) Act 2026 will come into force on 1st June 2026

Source: Bernama FB
https://www.facebook.com/share/p/1b57j33RqY/

[RETURN FORM YA 2025 OPEN FOR SUBMISSION]

e-Filing season for the Year of Assessment (YA) 2025 will begin on 1 March 2026. Taxpayers should take note of the filing due dates and make early preparations, including getting their supporting documents ready to avoid penalty for late submission.

LHDN's New Tax Filing Extension System for Malaysian Companies

Taxpayers must use the MyTax portal to submit applications for an Extension of Time (EOT) to file their tax returns. It is advisable for the company to first apply for an SSM extension before applying for an LHDN EOT.

📋 WHO CAN APPLY?
The e-Extension application is strictly for the following taxpayer categories:
✅ Companies (Form C) and Limited Liability Partnerships (Form PT)
✅ Cooperatives (Form C1) and Trust Bodies (Form TA)
✅ Unit Trusts (Form TC) and Business Trusts (Form TN)
✅ Petroleum Taxpayers (Form CPP / Form CPE)

📌 MAIN ELIGIBILITY CONDITIONS
To qualify for an e-Extension, ALL of the following conditions must be met:
1️⃣ The taxpayer's accounting period must match LHDNM's system records.
2️⃣ The application must be submitted between 30 days and at least 14 days before the filing deadline.
3️⃣ The taxpayer must not have any outstanding tax arrears up to the current Year of Assessment (YA).
4️⃣ The taxpayer must not have any outstanding CP204/CP250 (estimated tax) instalments for the requested YA.

📂 DOCUMENTS REQUIRED
For the application of extension via SSM approval, you are required to:
📎 Upload the official SSM approval letter
📎 Provide a copy or screenshot of the SSM 'Publish Report'

🔄 HOW MANY TIMES CAN YOU APPLY?
Generally, an e-Extension is granted ONCE only.
Exceptions:
• Applications with SSM approval (Code 001) may apply more than once.
• If rejected due to a mismatched accounting period (Code 101), taxpayers may reapply after updating LHDNM via Form CP204B.
• If rejected due to tax arrears (Codes 104/105), taxpayers may reapply after settling the arrears and once LHDNM's ledger has been updated.

📊 KEY APPROVAL & REJECTION STATUS CODES
✅ Approvals:
• 001 — Extension granted based on valid SSM approval.
• 002 — Approved based on LHDNM merit criteria.
❌ Rejections:
• 103 — Application was submitted less than 14 days before the filing deadline.
• 104 — Taxpayer has outstanding tax arrears.
• 105 — Taxpayer has outstanding estimated tax instalments (CP204/CP250).

🚨3 DAYS TO GO: URGENT NOTICE FOR EMPLOYERS! 🚨
Have you issued the Form EA (YA 2025) to your employees yet? If not, act now!
🗓️ Final Deadline: 28 February 2026

🔎 Statement of Remuneration from Employment for Private Sector (Form EA)
🔎 私人领域雇佣收入报表（EA 表格）

👉 Form EA must be prepared and provided to employees on or before 28 February 2026 for income tax filing purposes.
👉 EA 表格必须在 2026年2月28日或之前准备并提供给员工，以便员工申报个人所得税。

👉 Failure to prepare and render Form EA on time is an offence under Paragraph 120(1)(b) of the Income Tax Act 1967.
👉 未能在期限前准备及提供 EA 表格属于违法行为（1967 年所得税法令第 120(1)(b) 条）。

📌 Malay version (马来文版)

👉 Penalty: Fine RM200 to RM20,000 or imprisonment up to 6 months or both.
👉 罚款： RM200 至 RM20,000，或监禁不超过 6 个月，或两者兼施。

📥 Form EA 2025 can be downloaded here:
📥 EA 表格 2025 下载：

📌 Malay version (马来文版)
�https://www.hasil.gov.my/media/forms/upload/form_ba8e92ba-1235-427e-addf-e57a7b027ba9/dbe5401e-1f7e-423a-8a33-44ef94536b99/borang_ea__c.p.8a_-_pin._2023_.pdf

📌 English version (英文版)
👉https://phl.hasil.gov.my/pdf/pdfborang/EA_Pin2021_2.pdf

📌 Chinese translation version (华文翻译版 JPG )
👉 请参考附上的华文翻译版本（图片格式）

The key highlights for tax treatment on Income of social media influencers that you should know:

1.There are 2 types of social media influencers:
Individual Influencers: Real people from various backgrounds, such as artists, students, or professionals.
Object-based Influencers: Created characters, animations, or logos that have followers and are managed by an individual or company.

2. Income for influencers can be cash or non-cash. Non-cash items include free products, vouchers, or even gifts on social media that have monetary values.

3. Income for influencers is generally classified as business income under Paragraph 4(a) of the Income Tax Act 1967 (ITA) because it is derived from the exercise of a profession.

4. Income is taxable in Malaysia if the influencer's activities are performed in Malaysia, regardless of where the platform (like YouTube or Instagram) is based. If a Malaysian resident influencer performs activities overseas (e.g., filming a marketing video in Singapore), the income is still taxable in Malaysia as it relates to their profession as an influencer in Malaysia.

5. Influencers can reduce their taxable income by claiming business expenses that are "wholly and exclusively incurred" in producing income. Personal or private expenses are not allowed.

6. Influencers are also required to pay estimated tax instalment under the Notice of Instalment Payment (CP500) and to keep all income receipts and expense documents for seven (7) years for audit purposes.

2% Service Tax Exemption on Rental or Leasing Service

Do you know that you need to declare the 2% exemption in the invoice and SST-02 form?

Service providers are allowed to choose one of the following methods for issuance of invoice:

👉Method 1:
Rental service : RM1,000
Service tax 8% : RM80
2% exemption : (RM20)
Total payable : RM1,060

👉Method 2:
Rental service : RM1,000
Service tax 6% : RM60
Total payable : RM1,060
Note: The 2% service tax exemption amounting to RM20.

For the purpose of declaration in the SST-02 return, service providers must declare service tax on the rental service value at a 6% tax rate.

Subsequently, details of the exempted service value at 2% must also be declare at 18(c)(3) of the SST-02 return.

🔎 Statement of Remuneration from Employment for Private Sector (Form EA)
🔎 私人领域雇佣收入报表（EA 表格）

👉 Form EA must be prepared and provided to employees on or before 28 February 2026 for income tax filing purposes.
👉 EA 表格必须在 2026年2月28日或之前准备并提供给员工，以便员工申报个人所得税。

👉 Failure to prepare and render Form EA on time is an offence under Paragraph 120(1)(b) of the Income Tax Act 1967.
👉 未能在期限前准备及提供 EA 表格属于违法行为（1967 年所得税法令第 120(1)(b) 条）。

📌 Malay version (马来文版)

👉 Penalty: Fine RM200 to RM20,000 or imprisonment up to 6 months or both.
👉 罚款： RM200 至 RM20,000，或监禁不超过 6 个月，或两者兼施。

📥 Form EA 2025 can be downloaded here:
📥 EA 表格 2025 下载：

📌 Malay version (马来文版)
�https://www.hasil.gov.my/media/forms/upload/form_ba8e92ba-1235-427e-addf-e57a7b027ba9/dbe5401e-1f7e-423a-8a33-44ef94536b99/borang_ea__c.p.8a_-_pin._2023_.pdf

📌 English version (英文版)
👉https://phl.hasil.gov.my/pdf/pdfborang/EA_Pin2021_2.pdf

📌 Chinese translation version (华文翻译版 JPG )
👉 请参考附上的华文翻译版本（图片格式）

🚨 Reminder for Company Directors & Secretaries

A company and three directors were convicted on 6 January 2026 for failing to lodge the Annual Return for the calendar year 2024 with the Registrar under Section 68(1) of the Companies Act 2016.

📌 Annual Return is a statutory obligation and failure to comply may result in:
👉𝐂𝐨𝐮𝐫𝐭 𝐩𝐫𝐨𝐬𝐞𝐜𝐮𝐭𝐢𝐨𝐧
👉𝐅𝐢𝐧𝐞𝐬 𝐚𝐧𝐝 𝐩𝐞𝐧𝐚𝐥𝐭𝐢𝐞𝐬
👉𝐃𝐢𝐬𝐪𝐮𝐚𝐥𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐝𝐢𝐫𝐞𝐜𝐭𝐨𝐫𝐬

✅Ensure your company’s annual return is filed on time with SSM to avoid legal consequences.

*C