KS Chia & Associates

⚠️ 𝗔 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝗿𝗲𝗻𝘁𝗲𝗱 𝗼𝘂𝘁 𝟭𝟰 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝗶𝗲𝘀. 𝗖𝗹𝗮𝗶𝗺𝗲𝗱 𝘁𝗵𝗲 𝗶𝗻𝗰𝗼𝗺𝗲 𝘄𝗮𝘀 𝗮 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀. 𝗟𝗼𝘀𝘁 𝗶𝗻 𝗰𝗼𝘂𝗿𝘁 — 𝘁𝘄𝗶𝗰𝗲.

Here’s what happened and what it means for your company.

📌 𝗧𝗵𝗲 𝗖𝗮𝘀𝗲
Glenmarie Estates Sdn Bhd, a non‑listed investment holding company, owns 14 properties that were all rented out. The company filed its rental income as business income under 𝗣𝗮𝗿𝗮𝗴𝗿𝗮𝗽𝗵 𝟰(𝗮) 𝗼𝗳 𝘁𝗵𝗲 𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗮𝘅 𝗔𝗰𝘁 𝟭𝟵𝟲𝟳 — which allows more expenses to be deducted, capital allowances to be claimed, and losses to be carried forward.

LHDN assessed it differently.
The Special Commissioners of Income Tax dismissed the appeal in July 2023.
The High Court of Kuala Lumpur dismissed it again on 𝟮𝟮/𝟬𝟰/𝟮𝟬𝟮𝟲.

📌 𝗪𝗵𝘆 𝗜𝘁 𝗟𝗼𝘀𝘁
Under Public Ruling No. 12/2018, rental income is only treated as business income if the owner provides maintenance and support services that are 𝗰𝗼𝗺𝗽𝗿𝗲𝗵𝗲𝗻𝘀𝗶𝘃𝗲 𝗮𝗻𝗱 𝗮𝗰𝘁𝗶𝘃𝗲.

The court found two problems:
❌ The tenancy agreements did not require the company to provide comprehensive maintenance
❌ Services were only provided when tenants made a request or complaint — reactive, not active

Reactive services do not meet the standard.
The label “we do maintenance” means nothing without substance behind it.

📌 𝗧𝗵𝗲 𝗘𝘅𝘁𝗿𝗮 𝗥𝗶𝘀𝗸 𝗳𝗼𝗿 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗛𝗼𝗹𝗱𝗶𝗻𝗴 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀
For property‑holding companies, the standard applied is stricter.
Where rental activity is closely tied to investment holding, classification risk increases, and assumptions are more likely to be challenged.

📌 𝗪𝗵𝗮𝘁 𝗧𝗵𝗶𝘀 𝗠𝗲𝗮𝗻𝘀 𝗶𝗻 𝗣𝗿𝗮𝗰𝘁𝗶𝗰𝗲
Getting the classification wrong has real consequences:
⚠️ Expenses disallowed — only direct expenses are deductible
⚠️ Capital allowances not claimable
⚠️ Rental losses cannot be carried forward or set off against other income
⚠️ Additional assessments from LHDN

Many property owners only realise this after a review or challenge starts.

If your rental income has been treated as business income, it is worth reviewing whether the facts and documentation truly support that position.

We help property‑owning companies review their rental income tax position and ensure it is defensible if LHDN asks questions.

📲 WhatsApp: 011‑2366 5233
🏢 KS Chia & Associates (AF001828)

⚠️ 𝗛𝗔𝗦𝗶𝗟 𝗷𝘂𝘀𝘁 𝗽𝗿𝗼𝘃𝗲𝗱 𝗲-𝗜𝗻𝘃𝗼𝗶𝗰𝗲 𝘄𝗼𝗿𝗸𝘀 𝗮𝘀 𝗮𝗻 𝗮𝘂𝗱𝗶𝘁 𝘁𝗼𝗼𝗹. 𝗛𝗲𝗿𝗲 𝗶𝘀 𝘄𝗵𝗮𝘁 𝘁𝗵𝗮𝘁 𝗺𝗲𝗮𝗻𝘀 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀.

On 27/04/2026, HASiL announced that by cross-referencing e-Invoice data against tax returns, they identified taxpayers with unreported income and issued "nudge letters" to those with gaps in their records.
The result:
📌 38,906 taxpayers 𝘃𝗼𝗹𝘂𝗻𝘁𝗮𝗿𝗶𝗹𝘆 𝘀𝘂𝗯𝗺𝗶𝘁𝘁𝗲𝗱 𝘁𝗮𝘅 𝗿𝗲𝘁𝘂𝗿𝗻𝘀
📌 RM3.5 billion in unreported income declared
📌 RM760.7 million in tax now payable

Taxpayers who did not respond to the nudge will face 𝗳𝗼𝗿𝗺𝗮𝗹 𝗮𝘂𝗱𝗶𝘁 𝗮𝗻𝗱 𝗲𝗻𝗳𝗼𝗿𝗰𝗲𝗺𝗲𝗻𝘁 under the Income Tax Act 1967.

A national e-Invoice compliance operation (20–24 April 2026) has also identified 𝟭𝟬𝟴 𝗣𝗵𝗮𝘀𝗲 𝟭 𝗮𝗻𝗱 𝟮 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 for action — businesses 𝘄𝗶𝘁𝗵 𝗮𝗻𝗻𝘂𝗮𝗹 𝘁𝘂𝗿𝗻𝗼𝘃𝗲𝗿 𝗮𝗯𝗼𝘃𝗲 𝗥𝗠𝟮𝟱 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 that were still not issuing e-Invoices.

⚠️ 𝙒𝙝𝙖𝙩 𝙩𝙝𝙞𝙨 𝙢𝙚𝙖𝙣𝙨 𝙛𝙤𝙧 𝙮𝙤𝙪: If your declared income does not match your e-Invoice records for YA 2024 or YA 2025, HASiL can already see the gap. The window to self-correct before a nudge letter arrives is now.

Got a gap you are not sure about? Talk to us first.
📞 WhatsApp: 𝟬𝟭𝟭-𝟮𝟯𝟲𝟲 𝟱𝟮𝟯𝟯

KS Chia & Associates (AF001828)

⚠️ 𝗧𝗵𝗲 𝗟𝗮𝘀𝘁‑𝗠𝗶𝗻𝘂𝘁𝗲 𝗙𝗼𝗿𝗺 𝗕𝗘 𝗖𝗵𝗲𝗰𝗸: 𝟱 𝗤𝘂𝗶𝗲𝘁 𝗘𝗿𝗿𝗼𝗿𝘀 𝗧𝗵𝗮𝘁 𝗗𝗿𝗮𝘄 𝗟𝗛𝗗𝗡 𝗔𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻

𝗙𝗼𝗿𝗺 𝗕𝗘 𝗲‑𝗳𝗶𝗹𝗶𝗻𝗴 𝗰𝗹𝗼𝘀𝗲𝘀 𝟯𝟬 𝗔𝗽𝗿𝗶𝗹 (𝗴𝗿𝗮𝗰𝗲 𝘂𝗻𝘁𝗶𝗹 𝟭𝟱 𝗠𝗮𝘆). Many salaried employees rush the submission and miss small details.

The mistakes that cause issues are not obvious typos. They are quiet gaps that pass initial checks but raise flags later.

Here are 2 of the 5 triggers we spot most often during file reviews:

𝗦𝗶𝗹𝗲𝗻𝘁 𝘁𝗿𝗶𝗴𝗴𝗲𝗿 #𝟭: 𝗛𝗞‑𝟮 𝘄𝗼𝗿𝗸𝗶𝗻𝗴 𝘀𝗵𝗲𝗲𝘁 figures do not match the EA Form. LHDN systems pick up these mismatches automatically.

𝗦𝗶𝗹𝗲𝗻𝘁 𝘁𝗿𝗶𝗴𝗴𝗲𝗿 #𝟮: Income placed in the wrong section. Dividends or side income often get mixed into employment income when taxpayers reuse last year’s layout.

These errors rarely block your filing. They surface months later as CP500 notices or information requests.

We see three other common gaps. They usually sit in relief claims and document support. They look routine on paper, but LHDN checks them closely.

Want the full list and our correction checklist?
WhatsApp “BE SAFE” to 011 2366 5233.
We’ll send it straight to your WhatsApp.

KS Chia & Associates (AF001828)
Chartered Accountants

📢 𝗗𝗮𝗻𝗴𝗲𝗿 𝗭𝗼𝗻𝗲: 𝗔𝗿𝗲 𝘆𝗼𝘂 𝗰𝗼𝗽𝘆𝗶𝗻𝗴 𝗹𝗮𝘀𝘁 𝘆𝗲𝗮𝗿'𝘀 𝘁𝗮𝘅 𝗳𝗶𝗴𝘂𝗿𝗲𝘀? 𝗗𝗼𝗻'𝘁 𝗺𝗮𝗸𝗲 𝘁𝗵𝗶𝘀 𝗺𝗶𝘀𝘁𝗮𝗸𝗲.

For years, Malaysian taxpayers have assumed that dividends are completely tax-free under the single-tier system. Starting in 𝗬𝗲𝗮𝗿 𝗼𝗳 𝗔𝘀𝘀𝗲𝘀𝘀𝗺𝗲𝗻𝘁 𝟮𝟬𝟮𝟱, that assumption could lead to heavy penalties.

𝗧𝗵𝗲 𝗡𝗲𝘄 𝟮% 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱 𝗧𝗮𝘅 𝗶𝘀 𝗵𝗲𝗿𝗲.

If your individual dividend income exceeds RM100,000 per year, the excess amount is now subject to a 2% tax. This applies to both listed and unlisted Malaysian shares. 📈

𝗪𝗵𝘆 𝘁𝗵𝗶𝘀 𝗶𝘀 𝗮 "𝗗𝗮𝗻𝗴𝗲𝗿 𝗭𝗼𝗻𝗲":

✅ Many will assume dividends are still "tax-free" and fail to declare them.
✅ Failing to declare this income can lead to penalties under Section 112(3) or Section 113(1) for incorrect returns.
✅ The tax form has changed. Dividend income is now reported separately under 𝗣𝗮𝗿𝘁 𝗕𝗔 (𝗜𝘁𝗲𝗺 𝗕𝟴).
✅ The tax computation is split under 𝗣𝗮𝗿𝘁 𝗕𝗕, where the dividend tax is calculated using a specific formula (Item B26) and taxed at 2% (Item B27), separate from your normal tax at scale rates (Item B28).

𝗧𝗵𝗲 𝗚𝗼𝗼𝗱 𝗡𝗲𝘄𝘀 (𝗘𝘅𝗲𝗺𝗽𝘁𝗶𝗼𝗻𝘀):

Dividends from EPF (KWSP), ASNB, LTAT, and foreign sources are NOT included in this tax. 💰

Don't let the first year of this new tax catch you off guard. Review your dividend income position now before filing your Form B.

WhatsApp us at 011 2366 5233 for professional tax advice and review.

𝗙𝗼𝗿𝗺 𝗖 𝗬𝗔 𝟮𝟬𝟮𝟲: 𝗞𝗲𝘆 𝗖𝗵𝗮𝗻𝗴𝗲𝘀

LHDNM just released the new Form C for YA 2026. If your company falls under specific categories like Venture Capital or Labuan entities, you need to pay attention to these new reporting requirements. We compared the YA 2025 and YA 2026 forms, and here are the key changes you should know.

Three new disclosure items have been added to the 𝗯𝗮𝘀𝗶𝗰 𝗽𝗮𝗿𝘁𝗶𝗰𝘂𝗹𝗮𝗿𝘀: 𝗟𝗮𝗯𝘂𝗮𝗻 𝗰𝗼𝗺𝗽𝗮𝗻𝘆, 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗖𝗼𝗺𝗽𝗮𝗻𝘆, 𝗮𝗻𝗱 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗖𝗼𝗺𝗽𝗮𝗻𝘆. The form also introduces specific tax rate lines — 5% for Venture Capital Fund Entities and 10% for VC Management Companies.

LHDNM has completely removed the "𝗕𝗲𝗻𝗲𝗳𝗶𝗰𝗶𝗮𝗹 𝗢𝘄𝗻𝗲𝗿" section from Part G. This is a huge relief for tax practitioners and companies alike. Previously, tax agents faced challenges getting this information because company secretaries couldn't release it without director consent due to confidentiality rules. Now, that duplicative reporting is gone.

They also expanded the 𝗗𝗼𝗺𝗲𝘀𝘁𝗶𝗰 𝗧𝗼𝗽-𝘂𝗽 𝗧𝗮𝘅 (𝗗𝗧𝗧) 𝗮𝗻𝗱 𝗠𝘂𝗹𝘁𝗶𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗧𝗼𝗽-𝘂𝗽 𝗧𝗮𝘅 (𝗠𝗧𝗧) disclosure from a simple Yes/No to four specific options. Also, LHDNM has added new standalone fields for the company's 𝘁𝗲𝗹𝗲𝗽𝗵𝗼𝗻𝗲 𝗻𝘂𝗺𝗯𝗲𝗿 𝗮𝗻𝗱 𝗲𝗺𝗮𝗶𝗹 𝗶𝗻 𝗣𝗮𝗿𝘁 𝗚. This indicates they intend to communicate directly with the taxpayer, rather than just through the appointed tax agent. And the declaration now includes "𝘁𝗼 𝘁𝗵𝗲 𝗯𝗲𝘀𝘁 𝗼𝗳 𝘁𝗵𝗶𝘀 𝗰𝗼𝗺𝗽𝗮𝗻𝘆'𝘀 𝗸𝗻𝗼𝘄𝗹𝗲𝗱𝗴𝗲" — a change worth flagging to your directors.

Make sure your accounting team is aware of these updates before the next filing season.

WhatsApp us at 011 2366 5233 for professional advice.

𝗪𝗵𝗶𝗰𝗵 𝗳𝗼𝗿𝗺 𝘀𝗵𝗼𝘂𝗹𝗱 𝗜 𝗳𝗶𝗹𝗲 — 𝗙𝗼𝗿𝗺 𝗕 𝗼𝗿 𝗙𝗼𝗿𝗺 𝗕𝗘? 𝗚𝗲𝘁 𝗶𝘁 𝘄𝗿𝗼𝗻𝗴, 𝘆𝗼𝘂 𝗺𝗮𝘆 𝗿𝗲𝗰𝗲𝗶𝘃𝗲 𝗮 𝗖𝗣𝟱𝟬𝟬 𝗶𝗻𝘀𝘁𝗮𝗹𝗺𝗲𝗻𝘁 𝗻𝗼𝘁𝗶𝗰𝗲 𝗻𝗲𝘅𝘁 𝘆𝗲𝗮𝗿.

Filing season for YA 2025 is here. Many salaried employees recently received unexpected CP500 instalment notices from LHDN. This usually happens when bonuses or allowances are wrongly declared as "other income" instead of employment income on Form BE.

LHDN has clarified that pure salary earners do not need to pay CP500, and there is a penalty-free concession for 2026. But you must correct your record using Form CP502 to avoid future issues.

𝗤𝘂𝗶𝗰𝗸 𝗴𝘂𝗶𝗱𝗲:
— 𝗙𝗼𝗿𝗺 𝗕𝗘 = employment income only (𝘥𝘦𝘢𝘥𝘭𝘪𝘯𝘦: 30 𝘈𝘱𝘳𝘪𝘭, 𝘦-𝘧𝘪𝘭𝘪𝘯𝘨 𝘨𝘳𝘢𝘤𝘦: 15 𝘔𝘢𝘺)
— 𝗙𝗼𝗿𝗺 𝗕 = business income, freelance, actively managed rental under S.4(a)(𝘥𝘦𝘢𝘥𝘭𝘪𝘯𝘦: 30 𝘑𝘶𝘯𝘦, 𝘦-𝘧𝘪𝘭𝘪𝘯𝘨 𝘨𝘳𝘢𝘤𝘦: 15 𝘑𝘶𝘭𝘺)
— Passive rental income under S.4(d) can still go on Form BE

To prevent this surprise, always use the 𝗛𝗞-𝟮 𝘄𝗼𝗿𝗸𝗶𝗻𝗴 𝘀𝗵𝗲𝗲𝘁 to calculate your employment income. Put dividends, interest, and royalties on their correct dedicated lines. And keep all tax documents for seven years.

Need help sorting out your tax forms?

WhatsApp us at 011 2366 5233 for professional advice.

𝗔𝗿𝗲 𝗬𝗼𝘂 𝗢𝘃𝗲𝗿𝗽𝗮𝘆𝗶𝗻𝗴 𝗦𝗦𝗧 𝗼𝗻 𝗬𝗼𝘂𝗿 𝗖𝗼𝗻𝘀𝘁𝗿𝘂𝗰𝘁𝗶𝗼𝗻 𝗣𝗿𝗼𝗷𝗲𝗰𝘁𝘀? 𝗖𝗵𝗲𝗰𝗸 𝘁𝗵𝗲 𝗨𝗽𝗱𝗮𝘁𝗲𝗱 𝗥𝗠𝗖𝗗 𝗚𝘂𝗶𝗱𝗲 𝗡𝗼𝘄 📢

Did you know about the big SST changes for Malaysian contractors and developers announced last year? RMCD has finally updated their official Guide on Construction Work Services (published 17 March 2026) to reflect these crucial tax savings.

We have gone through all 72 pages of the updated guide so you do not have to. Here is what matters most to your business right now:

Here is what matters most to your business:

✅ 𝗥𝗘𝗦𝗜𝗗𝗘𝗡𝗧𝗜𝗔𝗟 𝗨𝗡𝗜𝗧𝗦 𝗜𝗡 𝗠𝗜𝗫𝗘𝗗 𝗗𝗘𝗩𝗘𝗟𝗢𝗣𝗠𝗘𝗡𝗧𝗦 𝗔𝗥𝗘 𝗡𝗢𝗪 𝗘𝗫𝗘𝗠𝗣𝗧
If you are building a mixed development, the residential portion is no longer subject to the 6% service tax. You just need an architect or surveyor to certify the built-up area split.

✅ 𝗢𝗟𝗗 𝗖𝗢𝗡𝗧𝗥𝗔𝗖𝗧𝗦 𝗚𝗘𝗧 𝗔𝗡𝗢𝗧𝗛𝗘𝗥 𝗬𝗘𝗔𝗥 𝗢𝗙 𝗥𝗘𝗟𝗜𝗘𝗙
Signed a construction contract before 01/07/2025 with no price review clause? Your service tax exemption is now extended to 30/06/2027.

⚠️ 𝗬𝗢𝗨𝗥 𝗜𝗡𝗩𝗢𝗜𝗖𝗘𝗦 𝗖𝗢𝗨𝗟𝗗 𝗕𝗘 𝗖𝗢𝗦𝗧𝗜𝗡𝗚 𝗬𝗢𝗨 𝗠𝗢𝗡𝗘𝗬
If your invoice shows a lump sum without separating building materials from services, Customs will charge 6% on the ENTIRE amount. Separate your materials from your service charges to save.

Do not leave money on the table. WhatsApp us at 011 2366 5233 for a quick review.

KS Chia & Associates
Chartered Accountants (AF001828)

🚨𝗣𝗮𝗿𝘁 𝟮: 𝗧𝗵𝗲 𝗟𝗛𝗗𝗡 𝗲-𝗜𝗻𝘃𝗼𝗶𝗰𝗲 𝗿𝘂𝗹𝗲𝘀 𝗰𝗵𝗮𝗻𝗴𝗲 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀.

Last week, we shared 4 common mistakes that trigger an LHDN tax audit. But the biggest risk right now comes from your data.

Here are the final 4 red flags you must watch out for — including the new e-Invoice system:

🔴 𝟰. 𝗗𝗮𝘁𝗮 𝗜𝗻𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝗰𝘆
Does your SST revenue match your income tax return (Form C)? LHDN now cross-checks data between government agencies. Any gap will trigger a query.

🔴 𝟲. 𝗦𝘂𝗱𝗱𝗲𝗻 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗼𝗿 𝗣𝗿𝗼𝗳𝗶𝘁 𝗖𝗵𝗮𝗻𝗴𝗲𝘀
A huge jump or drop in profits that you cannot explain with solid documentation will raise questions.

🔴 𝟳. 𝗖𝗮𝘀𝗵-𝗜𝗻𝘁𝗲𝗻𝘀𝗶𝘃𝗲 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀
F&B, retail, and construction are under heavy scrutiny. LHDN uses indirect methods to estimate undeclared cash income.

🔴𝟰𝗔. 𝗲-𝗜𝗻𝘃𝗼𝗶𝗰𝗲 𝗥𝗲𝗮𝗹-𝗧𝗶𝗺𝗲 𝗠𝗼𝗻𝗶𝘁𝗼𝗿𝗶𝗻𝗴
This is the big one. LHDN can now see your sales and purchases in REAL TIME through the MyInvois platform. You can no longer 'adjust' year-end figures because LHDN already holds your transaction data month by month.

The mandatory timeline runs until January 2026 (though businesses under RM1 million are exempted). Are you ready?

Missed Part 1? Want to see all 8 red flags and check if your business is safe?

👉 Read our full 8-point guide here: [https://kschia.blogspot.com/2026/03/why-lhdn-audits-companies-8-warning-signs.html]

Need help assessing your tax audit risk or setting up for e-Invoice?

Our team at KS Chia & Associates is here to guide you.

📲 WhatsApp us now: 011-2366 5233

🚨 𝗣𝗮𝗿𝘁 𝟭 : 𝗚𝗼𝘁 𝗮 𝗹𝗲𝘁𝘁𝗲𝗿 𝗳𝗿𝗼𝗺 𝗟𝗛𝗗𝗡? 𝗔𝘃𝗼𝗶𝗱 𝘁𝗵𝗲𝘀𝗲 𝗰𝗼𝗺𝗺𝗼𝗻 𝘁𝗮𝘅 𝗮𝘂𝗱𝗶𝘁 𝘁𝗿𝗶𝗴𝗴𝗲𝗿𝘀.

Getting selected for a tax audit is stressful and costly. But here is the truth: LHDN does not pick companies at random. They look for specific warning signs in your accounts.

Are you accidentally waving a red flag? Check these 4 common operational mistakes:

🔴 1. 𝗨𝗻𝘂𝘀𝘂𝗮𝗹 𝗘𝘅𝗽𝗲𝗻𝘀𝗲 𝗖𝗹𝗮𝗶𝗺𝘀
Claiming personal expenses as business costs, or inflating deductions without clear proof.

🔴 2. 𝗔𝗯𝗻𝗼𝗿𝗺𝗮𝗹 𝗠𝗮𝗿𝗴𝗶𝗻𝘀 𝗼𝗿 𝗟𝗼𝘀𝘀𝗲𝘀
Reporting profits way below your industry average, or making losses year after year without a good reason.

🔴 3. 𝗥𝗲𝗹𝗮𝘁𝗲𝗱 𝗣𝗮𝗿𝘁𝘆 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀
Paying high management fees to a holding company just to shift profits around.

🔴 4. 𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿 & 𝗦𝗵𝗮𝗿𝗲𝗵𝗼𝗹𝗱𝗲𝗿 𝗜𝘀𝘀𝘂𝗲𝘀
Using company funds for personal use, or having messy shareholder loan accounts.

If any of these sound familiar, now is the time to review your accounts before LHDN knocks on your door.

But wait — there is a much bigger risk this year. With the new e-Invoice system, LHDN can now see your sales and purchases in 𝗥𝗘𝗔𝗟 𝗧𝗜𝗠𝗘.

Want to know the remaining 4 red flags and how e-Invoice changes everything?

👉 Read our full 8-point guide here: https://kschia.blogspot.com/2026/03/why-lhdn-audits-companies-8-warning-signs.html

Need professional help to check your tax audit risk? Our team at KS Chia & Associates is ready to guide you.

📲 WhatsApp us: 011-2366 5233

𝗧𝗮𝘅 𝗨𝗽𝗱𝗮𝘁𝗲: 𝗙𝗼𝗿𝗺 𝗕 𝗬𝗔 𝟮𝟬𝟮𝟱 — 𝗪𝗵𝗮𝘁 𝗖𝗵𝗮𝗻𝗴𝗲𝗱 𝗮𝗻𝗱 𝗪𝗵𝗮𝘁 𝗬𝗼𝘂 𝗦𝗵𝗼𝘂𝗹𝗱 𝗗𝗼

LHDN has made major changes to Form B for Year of Assessment 2025. This is not just a form update — it changes how your tax is computed.

Here's what you need to know:

1. 𝗡𝗲𝘄 𝟮% 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱 𝗧𝗮𝘅

📢 𝙉𝙚𝙬 2% 𝘿𝙞𝙫𝙞𝙙𝙚𝙣𝙙 𝙏𝙖𝙭 𝙞𝙣 𝙈𝙖𝙡𝙖𝙮𝙨𝙞𝙖: What You Need to Know!
Starting from the Year of Assessment 2025, a new 2% tax will apply to individual dividend income exceeding RM100,000 per year. This applies to both listed and unlisted Malaysian shares. 📈

𝙏𝙝𝙚 𝙠𝙚𝙮 𝙛𝙖𝙘𝙩𝙨: ✅ Only the portion of dividends exceeding RM100,000 is subject to this tax. ✅ It is calculated based on a specific formula relative to your total taxable income. ✅ Exemptions: Good news! Dividends from EPF (KWSP), ASNB, LTAT, and foreign sources are NOT included in this tax. 💰

2. 𝗡𝗲𝘄 𝗙𝗶𝗿𝘀𝘁 𝗛𝗼𝗺𝗲 𝗧𝗮𝘅 𝗥𝗲𝗹𝗶𝗲𝗳 (𝗛𝟮𝟮)
Buying your first home between 1 Jan 2025 and 31 Dec 2027? You can claim loan interest relief:

• Property ≤ RM500,000 → Up to RM7,000/year
• Property RM500,001–RM750,000 → Up to RM5,000/year
• Available for 3 consecutive years
• Must be owner-occupied, not rented out

3. 𝗛𝗶𝗴𝗵𝗲𝗿 𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗥𝗲𝗹𝗶𝗲𝗳𝘀

• Disabled individual: RM6,000 → RM7,000
• Disabled spouse: RM5,000 → RM6,000
• Disabled child: RM14,000 → RM16,000
• Education & medical insurance: RM3,000 → RM4,000

4. 𝗘𝘅𝗽𝗮𝗻𝗱𝗲𝗱 𝗠𝗲𝗱𝗶𝗰𝗮𝗹 & 𝗟𝗶𝗳𝗲𝘀𝘁𝘆𝗹𝗲 𝗥𝗲𝗹𝗶𝗲𝗳𝘀

• Parents' medical expenses now include grandparents
• Medical exam relief now covers disease detection tests
• Self-testing devices expanded beyond COVID-19 kits
• Lifestyle relief (H10) now includes parents
• New relief for food waste composting machine

5. 𝗙𝗼𝗿𝗺 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗖𝗵𝗮𝗻𝗴𝗲𝗱

Form B now has three new parts — Part BA, Part BB, and Part BC. Tax computation is split into dividend tax (2%) and normal progressive rates. Incorrect mapping can misstate your tax.

Filing deadline:
• Statutory deadline: 30 June 2026
• e-Filing (e-B) deadline: 15 July 2026 (includes 15 days grace period)
(𝘕𝘰𝘵𝘦: 𝘔𝘢𝘯𝘶𝘢𝘭 𝘧𝘪𝘭𝘪𝘯𝘨 𝘪𝘴 𝘯𝘰 𝘭𝘰𝘯𝘨𝘦𝘳 𝘱𝘦𝘳𝘮𝘪𝘵𝘵𝘦𝘥 𝘧𝘰𝘳 𝘍𝘰𝘳𝘮 𝘉)

Late filing attracts penalties under s.112(3). Late payment adds 10% under s.103(3).

Got questions about how these changes affect you? We're here to help. WhatsApp us or drop us a message — we'll walk you through it.

KS Chia & Associates (AF 001828)
Chartered Accountants
WhatsApp: 011 2366 5233

𝗙𝗼𝗿𝗺 𝗘 𝗗𝗲𝗮𝗱𝗹𝗶𝗻𝗲 𝗶𝘀 𝟯𝟭 𝗠𝗮𝗿𝗰𝗵 𝟮𝟬𝟮𝟲. 𝗦𝘁𝗶𝗹𝗹 𝗴𝗲𝘁𝘁𝗶𝗻𝗴 𝘁𝗵𝗲𝘀𝗲 𝗰𝗮𝗹𝗹𝘀 𝗲𝘃𝗲𝗿𝘆 𝘆𝗲𝗮𝗿.

Two questions we keep getting this season:
"Do I need to include my foreign workers in Form E?"
"Do I need to deduct PCB for them?"

𝑩𝒐𝒕𝒉 𝒂𝒏𝒔𝒘𝒆𝒓𝒔: 𝒀𝒆𝒔.

⚠️ Foreign workers must be in Form E and CP8D — no exceptions. PCB applies too:
- Non-resident workers (fewer than 182 days in Malaysia) → 30% flat rate, no personal reliefs
- Tax resident workers (182 days or more) → progressive rates, same as locals

Beyond the foreign worker question, here are the other mistakes we catch every filing season:

📋 𝗗𝗲𝗲𝗺𝗲𝗱 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗿 𝗥𝘂𝗹𝗲 (𝗦𝟴𝟯(𝟲) 𝗜𝗧𝗔) — report everyone.
💰 𝗙𝗼𝗿𝗺 𝗘𝗔 — salary, bonus, commissions, director's fees. All of it.
🚩 𝗕𝗜𝗞 & 𝗩𝗟𝗔 wrong classification is a common audit trigger.
🏢 𝗗𝗼𝗿𝗺𝗮𝗻𝘁 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 still file. No exemption.
❌ 𝗡𝗼 𝗖𝗣𝟴𝗗 = no submission in — LHDN treats this as a non-submission. Penalties under S112(1) follow.

(Note : Deemed employer (S83(6) ITA) — if someone provides a service to your business, you are their employer under the law. Even contract and part-time workers count. Report everyone.)

LHDN's e-Filing grace period typically extends to 30 April — but this is not a right. Don't plan around it.

Questions? WhatsApp us: 011-2366 5233

🧧 𝗖𝗵𝗶𝗻𝗲𝘀𝗲 𝗡𝗲𝘄 𝗬𝗲𝗮𝗿 𝗢𝗳𝗳𝗶𝗰𝗲 𝗖𝗹𝗼𝘀𝘂𝗿𝗲 𝗡𝗼𝘁𝗶𝗰𝗲

KS Chia & Associates will be closed from 𝟭𝟲 𝗙𝗲𝗯𝗿𝘂𝗮𝗿𝘆 𝘁𝗼 𝟮𝟮 𝗙𝗲𝗯𝗿𝘂𝗮𝗿𝘆 𝟮𝟬𝟮𝟲 for the Chinese New Year holiday.

We will resume normal operations on Monday, 𝟮𝟯 𝗙𝗲𝗯𝗿𝘂𝗮𝗿𝘆 𝟮𝟬𝟮𝟲 .

Wishing everyone a prosperous and joyful Year of the Horse! 馬年大吉 🐴
For any urgent matters, please email us at [email protected] and we will respond when we return.

📌 Need help with tax filing, SST registration, or audit services? Reach out to us after the break — key deadlines are coming up!