KS Chia & Associates

𝗠𝗜𝗧𝗥𝗦 𝗦𝗲𝗿𝗶𝗲𝘀 𝗣𝗮𝗿𝘁 𝟰 | 𝗛𝗼𝘄 𝗲-𝗜𝗻𝘃𝗼𝗶𝗰𝗲 𝗮𝗻𝗱 𝗠𝗜𝗧𝗥𝗦 𝗔𝗿𝗲 𝗖𝗵𝗮𝗻𝗴𝗶𝗻𝗴 𝗧𝗮𝘅 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗶𝗻 𝗠𝗮𝗹𝗮𝘆𝘀𝗶𝗮

Many businesses currently view e-Invoice and MITRS as separate compliance obligations.

One relates to invoicing. The other relates to tax filing.

In practice, they are becoming increasingly connected.

e-Invoice provides transaction-level information throughout the year. MITRS provides LHDN with the audited financial statements, tax computation, capital allowance schedules and other supporting tax information after year end.

Put simply:

𝗲-𝗜𝗻𝘃𝗼𝗶𝗰𝗲 𝗿𝗲𝗰𝗼𝗿𝗱𝘀 𝘄𝗵𝗮𝘁 𝗵𝗮𝗽𝗽𝗲𝗻𝗲𝗱. 𝗠𝗜𝗧𝗥𝗦 𝗲𝘅𝗽𝗹𝗮𝗶𝗻𝘀 𝗵𝗼𝘄 𝗶𝘁 𝘄𝗮𝘀 𝘁𝗿𝗲𝗮𝘁𝗲𝗱.

The issue is no longer whether information can be produced during an audit.

The issue is whether:
• Revenue captured through e-Invoice reconciles to the financial statements.
• Financial statements reconcile to the income tax computation.
• Tax adjustments claimed can be supported by proper records.

The real change is not the tax law itself.

The real change is that information reaches LHDN much earlier and in a more structured form than before.

Businesses preparing for MITRS should start reviewing consistency between their e-Invoice records, accounting records and tax computations now, rather than waiting until filing season.

Read our latest MITRS Series Part 4 article.
https://kschia.com.my/mitrs-einvoice-tax-compliance-malaysia/

📍 KS Chia & Associates Chartered Accountants (AF001828)
📱 WhatsApp 011-2366 5233

𝗠𝗜𝗧𝗥𝗦 𝗦𝗲𝗿𝗶𝗲𝘀 (𝗣𝗮𝗿𝘁 𝟯): 𝗙𝗶𝘃𝗲 𝗔𝗿𝗲𝗮𝘀 𝗪𝗲 𝗖𝗵𝗲𝗰𝗸 𝗕𝗲𝗳𝗼𝗿𝗲 𝗦𝘂𝗯𝗺𝗶𝘀𝘀𝗶𝗼𝗻

Most MITRS issues are not caused by missing documents.

They arise because the audited financial statements, tax computation, capital allowance schedule and incentive schedules do not fully align with one another.

Before a MITRS submission is made, we typically review five areas that frequently create inconsistencies:
🔴 Form C vs final audited financial statements
🔴 Fixed asset note vs capital allowance schedule
🔴 Expense disclosures vs tax treatment
🔴 Related party transactions and director-related balances
🔴 Incentive claims and supporting documentation

One common example involves tax computations prepared based on draft accounts, followed by audit adjustments that are not reflected throughout the remaining schedules.

Under MITRS, those documents are submitted together.

Consistency becomes increasingly important.

This is also one reason why companies with delayed audits should review their Form C filing position early. Once filing timelines become compressed, the opportunity to resolve inconsistencies becomes much more limited.

Read Part 3:
👉https://kschia.com.my/mitrs-pre-submission-review-five-areas/
Related guide:
👉 e-Lanjutan Masa Guide 2026 https://kschia.com.my/e-lanjutan-masa-guide-2026/

KS Chia & Associates Chartered Accountants (AF001828)
📍 Kuala Lumpur
📱 011 2366 5233

𝗘𝗺𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁 𝗦𝘁𝗮𝗺𝗽𝗶𝗻𝗴 — 𝗟𝗛𝗗𝗡 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗲𝘀 𝘁𝗵𝗲 𝗥𝘂𝗹𝗲𝘀 (𝟳 𝗔𝘂𝗴𝘂𝘀𝘁 𝟮𝟬𝟮𝟲)

LHDN issued a clarification yesterday on stamp duty for employment contracts. Three rules every employer needs to know:

1️⃣ Salary RM3,000/month and below — no stamping, no endorsement needed

2️⃣ Salary above RM3,000/month — only the master contract needs stamping. Ancillary documents on the same employment arrangement do not

3️⃣ General Exemption instruments — endorsement with LHDN still required even where no duty is payable

Questions on how this affects your employment documents?

📱 WhatsApp: 011-2366 5233

KS Chia & Associates Chartered Accountants (AF001828)

𝗙𝗼𝗿𝗺 𝗖 𝗗𝗲𝗮𝗱𝗹𝗶𝗻𝗲: 𝟯𝟭 𝗔𝘂𝗴𝘂𝘀𝘁 𝟮𝟬𝟮𝟲

For companies with financial year ended 31 December 2025, the Form C filing deadline is 31 August 2026.

If your company needs more time to file, you may apply to LHDN for e-Lanjutan Masa — but the application window is short:

📅 Window opens: 1 August 2026
⚠️ Latest to apply: 16 August 2026

Miss 16 August and the system auto-rejects. No exceptions.

Our guide covers the eligibility requirements, application steps, and what LHDN checks before approving.

👉 Read the guide : https://kschia.com.my/e-lanjutan-masa-guide-2026/?utm_source=facebook&utm_medium=social&utm_campaign=elanjutan-aug26

📱 WhatsApp: 011-2366 5233
KS Chia & Associates Chartered Accountants (AF001828)

"My friend company claim also."

We hear this regularly. And our answer is never "can claim or not?"

Our answer is: "𝗜𝗳 𝗟𝗛𝗗𝗡 𝗿𝗲𝘃𝗶𝗲𝘄𝘀 𝘆𝗼𝘂𝗿 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘀𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁𝘀, 𝘁𝗮𝘅 𝗰𝗼𝗺𝗽𝘂𝘁𝗮𝘁𝗶𝗼𝗻, 𝗮𝗻𝗱 𝘀𝘂𝗽𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝘀𝗰𝗵𝗲𝗱𝘂𝗹𝗲𝘀 𝘁𝗼𝗴𝗲𝘁𝗵𝗲𝗿 — 𝗰𝗮𝗻 𝘄𝗲 𝗲𝘅𝗽𝗹𝗮𝗶𝗻 𝘁𝗵𝗶𝘀 𝗰𝗹𝗮𝗶𝗺?"

That question has always mattered. What MITRS changes is how soon it becomes relevant.

𝗕𝗲𝗳𝗼𝗿𝗲 𝗠𝗜𝗧𝗥𝗦, supporting documents sat in a filing cabinet until LHDN asked for them. The gap between filing and scrutiny gave many companies room to hold positions they had never fully reviewed.

𝗙𝗿𝗼𝗺 𝗬𝗔 𝟮𝟬𝟮𝟱, that gap has narrowed. Under MITRS (s.82B, ITA 1967), the audited financial statements, tax computation, capital allowance schedule, and incentive computations are submitted together — as a set. An expense absorbed into "other expenditure" on Form C may now appear as a named line in the AFS notes.

The deductibility rules have not changed. What has changed is 𝗵𝗼𝘄 𝘃𝗶𝘀𝗶𝗯𝗹𝗲 𝘁𝗵𝗲 𝘀𝘂𝗽𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗳𝗮𝗰𝘁𝘀 𝗵𝗮𝘃𝗲 𝗯𝗲𝗰𝗼𝗺𝗲.
Three mindsets we see regularly — and why each one creates risk:

✗ "𝗠𝘆 𝗳𝗿𝗶𝗲𝗻𝗱 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝗰𝗹𝗮𝗶𝗺 𝗮𝗹𝘀𝗼" — Peer behaviour is not a legal defence.
✗ "𝗟𝗛𝗗𝗡 𝘄𝗼𝗻'𝘁 𝗸𝗻𝗼𝘄 𝗼𝗻𝗲 𝗹𝗮𝗵" — Under MITRS, the documents arrive at LHDN together at filing stage.
✗ "𝗡𝗲𝘃𝗲𝗿 𝗸𝗲𝗻𝗮 𝗯𝗲𝗳𝗼𝗿𝗲" — Past compliance experience does not protect a position that was never defensible.

The better question today is not "Can we claim this?"

It is: "𝗜𝗳 𝗟𝗛𝗗𝗡 𝗹𝗼𝗼𝗸𝘀 𝗮𝘁 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴 𝘁𝗼𝗴𝗲𝘁𝗵𝗲𝗿 — 𝗰𝗮𝗻 𝘄𝗲 𝗱𝗲𝗳𝗲𝗻𝗱 𝘁𝗵𝗶𝘀 𝗰𝗹𝗮𝗶𝗺?"

Read the full article:
👉 https://kschia.com.my/mitrs-tax-risk-visibility-malaysia/?utm_source=facebook&utm_medium=social&utm_campaign=mitrs-series

Not sure whether your MITRS documents tell a consistent story? WhatsApp us before your 30-day window opens.

📲 011-2366 5233

𝗠𝗜𝗧𝗥𝗦 𝗮𝗻𝗱 𝗧𝗮𝘅 𝗥𝗶𝘀𝗸: 𝗪𝗵𝗮𝘁 𝗬𝗼𝘂𝗿 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁𝘀 𝗧𝗲𝗹𝗹 𝗟𝗛𝗗𝗡 𝗕𝗲𝗳𝗼𝗿𝗲 𝗮𝗻 𝗔𝘂𝗱𝗶𝘁 𝗕𝗲𝗴𝗶𝗻𝘀

Most businesses think the challenge with MITRS is uploading the documents on time.

Our view is different.

The bigger question is whether the four documents — audited financial statements, tax computation, capital allowance schedule, and incentive computation — tell the same story when read together.

Before MITRS, LHDN received aggregated figures from Form C. Commission payments, maintenance costs, professional fees — all lumped under broad expense categories. The breakdown only surfaced if additional documents were requested. Now those details are already sitting in the audited financial statements that form part of every MITRS submission.

A missed deadline may lead to a penalty. An inconsistent submission may require much more explanation later.

We have gone through MITRS submissions ourselves. The full article covers what each document reveals, which expense lines are worth reviewing before you upload, and what a defensible submission looks like.

FYE 31/12/2025: MITRS deadline is 30/09/2026. If you are filing Form C now, your window opens immediately after.

Read the full article →https://kschia.com.my/mitrs-lhdn-financial-disclosure-section-82b/

Questions about your MITRS submission? WhatsApp us at 011-2366 5233.

Has your company filed Form C for YA 2025 yet — or are you still in the middle of it?

A new director came to us this week convinced his 2026 Sdn Bhd had until 2027 before e-Invoice was his problem.

He was half right.

The actual answer depends on two things most new directors haven't checked — and getting either one wrong creates a real headache, in both directions.

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝟭: 𝗪𝗵𝗼 𝗼𝘄𝗻𝘀 𝘆𝗼𝘂𝗿 𝗰𝗼𝗺𝗽𝗮𝗻𝘆?

Before turnover even matters, check whether you qualify for the e-Invoice exemption. Most people skip this and go straight to the revenue question. Don't.

If you have a corporate shareholder above RM1 million, or you're a subsidiary of a group, the exemption is gone — regardless of how much or how little your company made this year.

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝟮: 𝗪𝗵𝗮𝘁 𝘄𝗮𝘀 𝘆𝗼𝘂𝗿 𝗬𝗔𝟮𝟬𝟮𝟲 𝘁𝘂𝗿𝗻𝗼𝘃𝗲𝗿?

If you passed the shareholding check and your first-year revenue crossed RM1 million — you implement from 01/01/2028. Not now. Two years away.

If it stayed below RM1 million — you're exempt until the year you eventually cross that threshold.

The wrong assumption in either direction carries real risk. Think you're exempt when you're not — non-compliance from day one. Think you must implement immediately when you actually qualify for deferral — money spent on a system you don't need yet.

Full decision tree with LHDN's own examples for each scenario: https://kschia.com.my/e-invoice-new-company-2026-implementation-date-2/

Which situation does your company fall under — did the answer surprise you?

📞 WhatsApp: 011-2366 5233 | KS Chia & Associates

𝗟𝗛𝗗𝗡 𝗼𝗽𝗲𝗻𝗲𝗱 𝘁𝗵𝗲 𝗲-𝗜𝗻𝘃𝗼𝗶𝗰𝗲 𝗦𝗽𝗲𝗰𝗶𝗮𝗹 𝗩𝗼𝗹𝘂𝗻𝘁𝗮𝗿𝘆 𝗗𝗶𝘀𝗰𝗹𝗼𝘀𝘂𝗿𝗲 𝗣𝗿𝗼𝗴𝗿𝗮𝗺𝗺𝗲 (𝗦𝗩𝗗𝗣) 𝗼𝗻 𝟳 𝗝𝘂𝗹𝘆 𝟮𝟬𝟮𝟲.

If your business has missed e-Invoice submissions, format errors, or late consolidated e-Invoices from your mandatory implementation date onwards — you can correct those records without penalty until 31 December 2027.

Three things to know before you act:
❶ 𝗚𝗼𝗼𝗱 𝗳𝗮𝗶𝘁𝗵 𝗶𝘀 𝗮𝘀𝘀𝗲𝘀𝘀𝗲𝗱, 𝗻𝗼𝘁 𝗮𝘀𝘀𝘂𝗺𝗲𝗱.

Case law shows LHDN treats inaccurate disclosures as “unclean hands” and may reject the SVDP outcome — even after initial acceptance.

What you submit must be accurate against what LHDN will subsequently find, not just honest in intent.

A known gap that was deliberately deferred is not the same as a genuine systems failure.

❷ 𝗦𝗩𝗗𝗣 𝗰𝗼𝘃𝗲𝗿𝘀 𝗲-𝗜𝗻𝘃𝗼𝗶𝗰𝗲 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗼𝗻𝗹𝘆 — 𝗻𝗼𝘁 𝗶𝗻𝗰𝗼𝗺𝗲 𝘁𝗮𝘅.

Correcting your e-Invoice records without addressing a matching income declaration gap can make the income gap more visible.
If both exist, review both — in the right order.

❸ 𝗧𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹 𝗿𝘂𝗹𝗲𝘀 𝗮𝗽𝗽𝗹𝘆.

Use SVDP 1.2 or SVDP 1.3 version strings only.

Consolidated e-Invoices must be submitted month by month — not a lump sum.

Transactions above RM10,000 still need individual e-Invoices even under SVDP.

Full breakdown — who qualifies, what’s excluded, the good faith standard, and the income gap risk:

👉 https://kschia.com.my/e-invoice-svdp-2026-correct-gaps-without-penalty/

If you’ve identified a gap and are unsure how to proceed — speak to us before submitting.

📞Whatsapp us 011-2366 5233

KS Chia & Associates | AF001828

SSM has 𝘄𝗮𝗶𝘃𝗲𝗱 𝗹𝗮𝘁𝗲 𝗹𝗼𝗱𝗴𝗲𝗺𝗲𝗻𝘁 𝗳𝗲𝗲𝘀 for Financial Statements and Annual Returns lodged via MBRS 𝗯𝗲𝘁𝘄𝗲𝗲𝗻 𝟬𝟭/𝟬𝟳/𝟮𝟬𝟮𝟲 𝗮𝗻𝗱 𝟯𝟭/𝟬𝟴/𝟮𝟬𝟮𝟲.

One fee removed. The compliance chain is still fully intact.

Here's what the waiver does NOT cover:
❌ Audit work still needs to be completed
❌ Form C deadline remains 31/08/2026
❌ MITRS submission (30 days after Form C) is unchanged
❌ SSM compound risk is not removed
❌ If you already hold an approved EOT — the waiver does not apply to you
❌ The EOT window for YE 31/12/2025 closed on 23/06/2026

We published the full breakdown of how one late audit now triggers three separate compliance risks — MBRS-XBRL, MITRS, and the SSM/LHDN extension sequence — last week: https://kschia.com.my/late-audited-accounts-2026-mbrs-xbrl-mitrs-risk/

The waiver buys breathing room on one cost line. It doesn't change the deadline for anything else.

Has your company's audit been completed yet for YE 31/12/2025?

⚠️ 𝗜𝗳 𝘆𝗼𝘂𝗿 𝗰𝗼𝗺𝗽𝗮𝗻𝘆'𝘀 𝘆𝗲𝗮𝗿-𝗲𝗻𝗱 𝗶𝘀 𝟯𝟭 𝗗𝗲𝗰𝗲𝗺𝗯𝗲𝗿, 𝘁𝗵𝗲 𝘄𝗶𝗻𝗱𝗼𝘄 𝘁𝗼 𝗿𝗲𝘃𝗶𝘀𝗲 𝘆𝗼𝘂𝗿 𝗬𝗔 𝟮𝟬𝟮𝟲 𝘁𝗮𝘅 𝗲𝘀𝘁𝗶𝗺𝗮𝘁𝗲 𝗰𝗹𝗼𝘀𝗲𝘀 𝟯𝟬/𝟬𝟲/𝟮𝟬𝟮𝟲.

Most directors check this when profit drops — fewer check whether the original CP204 was even filed. We've seen LHDN compounds issued for non-filing alone, before any tax shortfall is calculated.

Full breakdown of both risks, and what to check before the deadline → https://kschia.com.my/cp204-mid-year-revision-deadline-2026/

Has your team confirmed your CP204 filing status for this YA?

📞 WhatsApp: 011-2366 5233
KS Chia & Associates