23/01/2025
Each time OGC is so fruitful, thank you very much Mr Tan for your colourful slides, crystal clear explanation and guidance. Precise and teach us to avoid the bomb to step on which causes loss of money money.
I want to share here my learning today :
1. 2% Dividend Tax calculation = Dividend Income (from malaysia) excess of RM100K / (divide by) Aggregate Income (Business income + employment income + Interest income + dividend income + rental income + other income ) x chargeable Income = chargeable Dividend Income x 2% = Dividend tax
2025 Form BE / B will have this new field
it is automatically calculated in Form BE/ B e-filing
only put in the excess part of 100k, eg, 120k put 20k
2. During winding up of the company
if cash/bank balance is 1mil, where share capital is 100k, then it still has a balance of 900k. Is this 900k taxable? So question ask yourself :
Is this RPGT?
Is this income tax? Always set up company, wind up
Is this CGT - applicable to the company only. Individuals not subject to CGT
So this 900k, in the hands of shareholder, is tax exempted.
It falls under capital gain, as the company already paid income tax.
Sold off assets so got cash
Dividend never declare
3. Crypto gain
Example you earn crypto coins from accomplishing a task, is this taxable?
Taxable if actively trading, actively doing it, if you do mining of this coin
Not taxable if for investment purposes, and not actively trading
4. e-CKHT
Start from 1 Jan 2025
It is mandatory to submit via Mytax for e-CKHT
Pengenalan sistem taksiran sendiri CKHT
Key forms :
CKHT 1A : for disposal of real property by individuals or companies
CKHT 1B : for disposal of shares in real property companies (RPC)
CKHT 2A : for purchase of real property by individuals or companies
CKHT 502 : withhold retention from buyer for RPGT
5. Who Exempted from e-invoice
a. foreign diplomatic officer
b. Individual who is not conducting business
c. Statutory body, statutory authority, local authority
d. International organisation for transaction of any goods sold or service performed before 1 July 2025 ( ie, after 1 July 2025 no more exempted)
e. Annual revenue less than RM150K, ( maybe hopefully when gazetted later, M*F may increase to 500K )
NGO is not in the list above, so it is subject to e-invoice
6. Self bill condition :
a. Payment to agents, dealers, distributors
b. Goods sold or services rendered by foreign suppliers
c. Profit distribution - JV, LLP, supplier share profit, dividend distribution
d. Electronic commerce (e-commerce) transaction
e. Payout to all betting and gaming winners ( casino and gaming machine TBC)
f. Transactions with individuals (who are not conducting a business)
g. Interest payment, except :
- Businesses that charge interest to the public at large, eg Bank
- Interest payments made by employee to employer
- Interest payments made by foreign payors to Malaysian taxpayers
- Claim, compensation or benefit payments from the insurance business of an insurer
7. Rental - self bill by tenant
since allow to issue a self bill for rental paid once a year, for eg, jan25-Dec25, issued by 31 Dec 2025,
not right if the issue is dated 1 Jan 2026, not meet FRS and LHDN, SST requirements.
E-invoice guideline :
There is no specific requirement on the timing of e-invoice issuance,
Except:
a. consolidated e-invoice (7 calendar days after month end),
b. self-billed e-invoice for importation of goods/services for e-invoice for foreign income.
others - no fixed timing of issuance e-invoice
8. SSPN withdrawal
Refer to Gazetted Finance Act : definition of Higher education means after Primary, secondary,
is higher So is a diploma, degree
Supporting document: Receipt of education fees/ school admission letter
9. Child care sponsored by the company.
Since the receipt is still with me, not given to the company, can I claim relief?
Scenario 1
Under company payroll
Personal relief can be claimed with 2 criteria :
1. Incurred
2. No subsidy (insurance)
Eg, if payment is 500 x 12 = 6,000
So the company already gave you RM2400, balance you can claim personal tax relief 6000-2400
Scenario 2
Claim from Employer
Same
10. Refundable Deposit
2 Examples "
a. TNB deposit RM500
This is refundable and so not taxable.
b. Training deposit
Need to specify is refundable
Eg, the uniform is refundable upon return of the uniform
The training fee's deposit is stated as not refundable or refundable or not, not important here. Even you clearly stated in agreement.
Income tax will ask you to declare first the income.
11. Who is required to submit form b/be, according to sec 77
a. Have taxable income
b. Has been submitting for prior year
Husband has income
Wife no income
combined assessment.
If the wife has no income, does she still need to submit form BE?
Income tax officer some say yes, some say no.
Before e-invoice comes, go close the tax file first.
Then will no longer need to submit
Now with e-invoice, everybody has to submit, since with TIN number.
So need to submit form be
12. Touch no go 1% admin charges
Example
Buy Furniture - RM2500
Reload with cc, Touch n go with 1% fee RM25
Become RM2525
Can capitalise 2500
rm25 - Touch n Go charges
Or 2525 also can.
Because this is incurred as incidental cost
Made sure consistency
13. E-invoice on staff claim
Staff name buy from shopee then staff claim
No wrong, just double work
Why not use the company name to request from shopee
Staff can claim what item, just ensure to put in the employee handbook, the staff can purchase
Same for partner
Partners also can claim
14. E-invoice on invoice date
If sales are in Jan, but only bill in Feb, can?
What if the client year-end is Jan, not Feb.
So sales do not match purchases.
Timing difference
Even if not e-invoice, this is a wrong practice
when director received on behalf of a company,
When tax investigation, LHDN will not take this arrangement
15. E-invoice & cp58
Cp58 is the total commission for one year
Is just like payment of pcb still needs give EA form
Travel, incentive, = cp58
Self-billed e-invoice currently not replace cp58
16. Freelancer no register SSM
As a freelancer is doing business indeed
But in Malaysia it is compulsory to register SSM,
Ssm has the authority to compound for not registering SSM
Can register as sole pro, pp, llp, sdn bhd, bhd
-Income >150k
-Need register SSM
-Need issue e-invoice
-Need report Form B
-Even is part-time doing it, also need to register SSM
17. If a company distribute 50% profits to an individual ( example supplier )
The company need issue Self-bill
18. Shopee - articles
Register business sellers can be :
- Sole proprietor
- Company, partnership, LLP
- Individual seller
19. Some customers unknowingly you are below 150k, and issue self-bills to you, so LHDN will know you are doing business and not registered SSM and are not report form b all these years
20. Consolidated e-invoice period
To submit within 7 calendar days after the month's end.
Can I issue weekly?
It is allowed weekly basis, but 4 times job
21. E-invoice timing
Service is jan25
E invoice date mar25
Are the clients acceptable? He can report you.
Financial year-end
So is better after once the service done, just issue an e-invoice
If it is a service, it affects SST too.
Better not complicate the thing, or else only pay compound from your income earn
22. cancel e-invoice
Before 72 hours
Cancel e-invoice
After 72 hours
E-invoice Credit Note and issue new e-invoice
23. Foreign worker - no permit, with passport
If an e-invoice is issued, does it solve the issue of foreign workers with no working permit?
Can I issue a self-bill?
Since it is a foreign supplier
Has passport number,
But this person did not report income tax
Now developers is trying to solve this problem
If not found a solution,
All these wages or sub-con will be added back
So the foreign worker agency,
I bill you for rent the worker
Some agencies can rent if allowed in their licence
24. Pasar suppliers below 150k are exempted to give you an e-invoice
My business sells vege, and buys from pasar, this pasar seller does not have ssm, and less than 150k.
We self-bill to this pasar seller?
Answer :
Then can just use his receipt/invoice
Do not issue self-bill
25. E-inv determination of business, badges of trade.
SSM penalty 50k and/or 2 years imprisonment
In Form B : Sales less expenses = net profit is lower
If one day, SSM request a list from LHDN, who report under Form B
SSM could find out and impose a penalty.
Now all the part-timers need to register ssm
Last time is SG, OG
Scare boss know if your tax file number is OG
Now all is IG
Regardless you open shop or not
As long as got a profit and badges of trade, is doing business.
26. E-invoice evidence of revenue 150k
just do your part :
A checklist sent to all supplier
send out the checklist to your supplier for the information you require.
Checklist info like name, tin, address, contact, email, msic code
27. E-invoice: stock code
Be specific : chicken burger, beef
Sprite, cola
Not just food and beverage
As needed matching to sales and purchases
LHDN use AI to do matching now
and ask why your purchase does not tally with your sales
Using wider scope for stock code is wrong,
Need specific code after relaxation period
28. refer above exempted from e-invoice :
Profit sharing e-invoice
No need issue self bill
Profit sharing example :
Dividend distribution
JV - revenue sharing
Supplier sharing profit with you
LLP - profit sharing
29. E-invoice on payment details
Payment name and invoice name = name need matching
Lhdn audit - expenses and purchases
Now is easier to talk to the supplier, since the e-invoice was issued to your company / individual name already, the payment part needs to match anyway.
Avoid tax investigation
E-invoice is helping/ assisting you actually to explain to the stubborn supplier
