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August Advisory Sdn. Bhd. August Advisory Sdn Bhd
No. 12-1, Jalan Astaka 1C/KU2, Bandar Bukit Raja, 41050 Klang, Selangor

August Advisory Sdn Bhd
(202201029858/1475555-V)

Klang office - Bandar Bukit Raja
KL office - Northpoint, Mid Valley City

CFO Advisory | Financial Operations Support | Taxation | Corporate Secretarial | Payroll | e-invoice Training

Royal Malaysian Customs Department has issued General Ruling No. 6/2026, effective 21 September 2026. It replaces Genera...
21/09/2026

Royal Malaysian Customs Department has issued General Ruling No. 6/2026, effective 21 September 2026. It replaces General Ruling No. 1/2025 and sets out the forms, returns and payment methods under the Tourism Tax Act 2017, Sales Tax Act 2018 and Service Tax Act 2018. If your team has been relying on the old ruling, or simply on habit, here is what actually applies now.

Start with registration. Applications can only be submitted online. Once registered, your SST-02 return goes through the MySST portal, and so does the payment. You can also send the return by post, courier or P-hailing to the Customs Processing Centre in Petaling Jaya if that suits your workflow better. Just note how the date is counted: a posted return is taken on its postmark date, while a courier return is taken on the date recorded in its tracking system.

Paying by cheque comes with two rules worth remembering. Each return can only be paid with one cheque or bank draft, so splitting a payment across several cheques will not work. Future dated cheques are also not accepted. And whichever way you pay, the return is only treated as settled once the Director General of Customs actually receives the money. For online banking, that means the amount only counts once it is credited, not the moment you click submit.

Mistakes happen too, and Customs has a clear channel for them. If SST was charged when it should not have been, or if a business that should have registered failed to charge SST at all, form SST-ADM 2 is how you declare and pay voluntarily. If you disagree with a decision Customs has made on your SST matter, you can apply for a review, but you only have 30 days from the date you were notified, and only if you have not already taken the matter to the Customs Appeal Tribunal or the courts. Refunds follow their own rule too: each claim needs its own form, so combining several claims into one submission is not allowed.

If you wish to focus on running and growing your business, our CFO advisory team can take care of your accounting, payroll, tax planning, e-stamping, corporate secretarial and compliance matters for you. Feel free to WhatsApp us at 010-246 2151.

When business owners restructure shareholding, bring in new partners or transfer shares to family members, stamp duty on...
20/09/2026

When business owners restructure shareholding, bring in new partners or transfer shares to family members, stamp duty on the share transfer document is one obligation that often gets missed until the last minute.

For shares in companies incorporated in Malaysia that are not listed on Bursa Malaysia, the stamp duty is calculated based on whichever is higher between the transfer price or the value of the shares on the date of transfer. The rate is RM10 for every RM1,000 or part thereof.

The value used is not simply the price two parties agree on. For ordinary shares, the calculation uses the Net Tangible Asset (NTA) method, which takes total assets, minus intangible assets, minus total liabilities, then divides by the number of issued shares to arrive at the NTA per share. The duty is then based on either this NTA figure or the actual consideration paid, whichever is higher.

Different situations attract different treatment. If the company has just been incorporated and has no track record yet, the consideration paid is used as the basis.

The buyer or transferee is responsible for paying the duty. The instrument used is the Form of Transfer of Securities under the Companies Act 2016.

If you are planning a share restructuring exercise, understanding how stamp duty is computed early helps avoid surprises at the time of ex*****on. Our CFO advisory team helps businesses navigate these obligations without disruption. WhatsApp us at 010-246 2151.

Giving away a property is still treated as a disposal under the Real Property Gains Tax Act, even though no money change...
17/09/2026

Giving away a property is still treated as a disposal under the Real Property Gains Tax Act, even though no money changes hands. Ordinarily, a gift is taxed as if the property were sold at its market value on the date of the transfer.

The law softens this for transfers within close family. Where the person giving the property and the person receiving it are husband and wife, parent and child, or grandparent and grandchild, and the giver is a Malaysian citizen, the giver is treated as having made no gain and suffered no loss on the gift.

The recipient does not get a fresh, higher starting point either. The recipient simply takes over the giver's original acquisition price exactly as it stood, which already accounts for costs the giver paid at the time such as legal fees and stamp duty. On top of that unchanged figure, the recipient also inherits any separate cost the giver later spent on improving the property or defending title to it, which the law treats as its own distinct category of allowable expense.

This means the tax is not cancelled by the gift, only delayed. When the recipient eventually sells the property, the gain is measured from the original owner's cost, not from the property's value on the day it was gifted.

Families planning to pass property down should keep the original purchase documents, since that is the figure that will matter when the next sale happens.

If you wish to focus on running and growing your business, our CFO advisory team can take care of your accounting, payroll, tax planning, e-stamping, corporate secretarial and compliance matters for you. Feel free to WhatsApp us at 010-246 2151.

This is one of the most common questions business owners ask, and the confusion it causes has brought down more than a f...
16/09/2026

This is one of the most common questions business owners ask, and the confusion it causes has brought down more than a few good companies. You see a healthy profit figure on your income statement, yet you are struggling to pay suppliers or make payroll. How can this be?

The answer lies in a fundamental difference that most business owners have never been taught. Profit is an accounting number. It is calculated the moment a sale is made, even if the customer has not paid you yet. Cash, on the other hand, is what actually sits in your bank account. These two numbers almost never match, and sometimes they move in completely opposite directions.

Think about it this way. If you sold RM500,000 worth of goods this month but your customers have 60 days to pay, your income statement records RM500,000 in revenue. Your cash balance records zero from that sale. Meanwhile, you still had to pay your suppliers, your staff, and your overheads. This gap between profit and cash is real, it is normal, and it is dangerous if you do not manage it deliberately.

There are three main reasons why cash flow from your business operations will differ from your net profit figure. First, when customers owe you money, those receivables sit in your balance sheet but do not become cash until collected. The longer your credit terms, the bigger this gap. Second, inventory ties up cash. Every ringgit sitting in your warehouse is a ringgit not in your bank. Third, when you buy goods or services on credit from suppliers, you benefit from a short-term delay in paying, which actually helps your cash position.

The practical implication is simple. You cannot run a business by looking at the profit line alone. You must read your cash flow statement alongside your income statement every single month. The cash flow from operations tells you how much real cash your business activities actually generated, which is often a very different number from your net profit.

Businesses that grow fast are especially vulnerable. When sales increase, receivables and inventory both increase proportionally. This means the business is putting more cash out the door to fund that growth before it sees any of it come back in. Many profitable businesses have gone bankrupt precisely because growth consumed their cash faster than they could replenish it.

If your profit looks healthy but cash always feels tight, you need a CFO-level conversation about how your business is really performing. WhatsApp our advisory team at 010-246 2151.

Stamping a document in Malaysia follows a fixed sequence, and each step has its own requirement. Understanding the full ...
15/09/2026

Stamping a document in Malaysia follows a fixed sequence, and each step has its own requirement. Understanding the full path helps a business avoid unnecessary delays, mistakes or penalties along the way.

The process begins with registration. Every party to the document must have a Tax Identification Number before an application can even be made. The duty payer then logs into the MyTax portal and selects the correct declaration form for the type of document being stamped, choosing from security, rental or general categories, before uploading the document itself together with any supporting papers.

From there, assessment happens in one of two ways. Under self-assessment, the system calculates duty automatically once the form is submitted, and the submission is treated as though it has already been assessed by the Collector on that date. Under formal assessment, the completed form is instead sent to LHDN, and the duty payer must wait for a formal notice stating the amount payable before proceeding further.

Payment follows, with thirty days given for a self-assessed submission and fourteen days for a formal one. The final step is printing the stamp certificate and attaching it to the document. Only once this certificate is in place is the document considered duly stamped and legally valid.

Missing any step along this chain, particularly the final payment and certificate stage, can result in penalties for late stamping under the Stamp Act 1949.

If you wish to focus on running and growing your business, our CFO advisory team can take care of your accounting, payroll, tax planning, e-stamping, corporate secretarial and compliance matters for you. Feel free to WhatsApp us at 010-246 2151.

Malaysian transfer pricing rules require the interest charged on a loan between related companies to match what an indep...
14/09/2026

Malaysian transfer pricing rules require the interest charged on a loan between related companies to match what an independent lender would have charged an independent borrower. A credit rating is the tool used to work out what that independent rate should be.

When a bank considers lending money, it checks the borrower's ability to repay before deciding on a rate. The Malaysia Transfer Pricing Guidelines 2024 apply the same logic to intercompany loans, stating that creditworthiness is one of the primary factors an independent lender considers, and that credit ratings help identify comparable transactions for benchmarking. A credit rating is an independent assessment of a borrower's ability to meet its debt obligations in full and on time, based on financial health and repayment history, and it directly affects the arm's length interest rate applied in a comparable transaction between unrelated parties.

Being part of a larger group does not automatically mean a borrowing company shares the group's overall credit standing for pricing purposes. Financial strength, profitability, existing debt levels, and cash flow stability all affect the rating assigned to the specific borrower, and that rating is then benchmarked against market data to arrive at an arm's length rate. The loan's own terms, including currency, maturity, and whether it is secured, also feed into that comparison.

Without a credit rating behind it, an interest rate has no basis for comparison if LHDN reviews the transaction. LHDN expects the credit rating evaluation, and the reasoning behind it, to be documented as part of the transfer pricing analysis when the loan is arranged, not worked out afterwards to justify a rate already applied.

If you wish to focus on running and growing your business, our CFO advisory team can take care of your accounting, payroll, tax planning, e-stamping, corporate secretarial and compliance matters for you. Feel free to WhatsApp us at 010-246 2151.

LHDN's updated e-Invoice FAQ now lists three tax incentives available to businesses implementing e-Invoice, up from the ...
13/09/2026

LHDN's updated e-Invoice FAQ now lists three tax incentives available to businesses implementing e-Invoice, up from the single incentive mentioned previously. Each is tied to a specific piece of legislation.

The first is a tax deduction of up to RM50,000 for each year of assessment, covering ESG-related expenditure such as consultation fees for developing customised e-Invoice software. This applies to MSMEs as defined under the Small and Medium Enterprises Corporation Malaysia Act 1995, for years of assessment 2024 to 2027, under the Income Tax (Deduction for Expenditure in relation to Environmental Preservation, Social and Governance) Rules 2025.

The second is an Accelerated Capital Allowance for ICT equipment and computer software used to implement e-Invoice. This shortens the capital allowance claim period from three years to two years, made up of an initial allowance of 20 percent and an annual allowance of 40 percent. It applies for years of assessment 2024 to 2027, under the Income Tax (Accelerated Capital Allowance) (Information and Communication Technology Equipment for the Implementation of Electronic Invoice) Rules 2026.

The third is an Accelerated Capital Allowance for the development cost of customised computer software used to implement e-Invoice. This shortens the claim period from two years to one year, for years of assessment 2026 and 2027.

If you wish to focus on running and growing your business, our CFO advisory team can take care of your accounting, payroll, tax planning, e-stamping, corporate secretarial and compliance matters for you. Feel free to WhatsApp us at 010-246 2151.

An employer's responsibilities do not end once an employee resigns or prepares to leave Malaysia for an extended period....
10/09/2026

An employer's responsibilities do not end once an employee resigns or prepares to leave Malaysia for an extended period. This obligation is not limited to foreign staff completing an overseas assignment. It applies equally to any employee, Malaysian or foreign, who is chargeable to tax and who intends to leave the country for more than three months, whether for relocation, an extended posting abroad, or any other reason. Malaysian law places specific and time-bound obligations on the employer in every such case, to ensure the employee's tax affairs are properly closed out before departure.

The employer must notify the tax authority of the employee's departure using the appropriate form, and this notification must be submitted electronically not less than thirty days before the employee is expected to leave the country. This requirement is triggered by the departure itself and the employee's tax-chargeable status, not by the employee's nationality. This early notice gives the tax authority time to assess the employee's final tax position before they are no longer easily reachable.

Once this notification is submitted, the employer must withhold any portion of money still owed to the employee, whether final salary, leave pay, or other amounts due. This withheld money cannot be released to the employee, even partially, until either a tax clearance letter is issued by the tax authority, or ninety days pass from the date the notification was submitted, whichever comes first.

Where the employee's tax, or a portion of it, is being borne by the employer under an existing arrangement, the same final computation must be completed before departure, so that the correct amount can be remitted directly to the tax authority through the clearance process. The employer remains responsible for ensuring the tax due is settled in full, regardless of whether the employer or the employee is the one financially bearing the cost.

Failure to comply with these notification and withholding requirements is an offence, and beyond the risk of prosecution, an employer who fails to withhold funds as required can become personally liable to pay the full amount of tax owed by the departing employee, recoverable by the government as a civil debt.

If you wish to focus on running and growing your business, our CFO advisory team can take care of your accounting, payroll, tax planning, e-stamping, corporate secretarial and compliance matters for you. Feel free to WhatsApp us at 010-246 2151.

Service Tax Policy No. 5/2026, issued by the Royal Malaysian Customs Department on 8 September 2026, introduces a servic...
09/09/2026

Service Tax Policy No. 5/2026, issued by the Royal Malaysian Customs Department on 8 September 2026, introduces a service tax exemption for construction work carried out for clients based outside Malaysia. This covers construction services for offshore and onshore facilities, as well as the conversion of ships into floating structures.

Under this policy, two groups benefit. Clients outside Malaysia no longer need to pay service tax on these construction services, based on paragraph 34(3)(a) of the Service Tax Act 2018. Construction service providers in Malaysia also no longer need to charge or collect service tax on these services when supplied to clients outside Malaysia, based on subsection 34(4) of the same Act. The exemption takes effect from 1 July 2025.

Several conditions apply. The service provider must be registered under Group L of the First Schedule to the Service Tax Regulations 2018. The contract must be in writing, signed with the client outside Malaysia, and stamped with stamp duty by LHDN. The exemption lasts from 1 July 2025 until the project is completed or the contract expires, whichever comes first.

Every invoice issued must carry a statement confirming the exemption, referencing the relevant provisions and Service Tax Policy No. 5/2026. If a service provider has already collected service tax from customers from 1 July 2025 onwards, this amount must still be paid to the Customs Department, and no refund will be given for tax already collected.

If you wish to focus on running and growing your business, our CFO advisory team can take care of your accounting, payroll, tax planning, e-stamping, corporate secretarial and compliance matters for you. Feel free to WhatsApp us at 010-246 2151.

A new LHDN guideline dated 4 September 2026 replaces the version issued on 28 March 2023, and several of the changes mat...
08/09/2026

A new LHDN guideline dated 4 September 2026 replaces the version issued on 28 March 2023, and several of the changes materially loosen or tighten how Hospital Welfare Funds under Section 44(6) of the Income Tax Act 1967 must operate.

One of the largest changes concerns help for non-citizens. Under the 2023 guideline, only 1 percent of public donations could go toward non-citizens, and only for emergency cases. The 2026 guideline raises this to 20 percent of donations collected, and drops the emergency-only condition altogether, allowing help on humanitarian grounds more broadly. This is a twenty-fold increase in the amount a fund can direct toward non-citizens.

Committee governance has also tightened in a specific way. The 2026 guideline states plainly that board members appointed to sit on a fund's committee cannot receive salary or any allowance tied to their role, and can only claim reasonable reimbursement backed by supporting documents. Fund money is also barred from benefiting any committee member, hospital director, or their family. The 2023 guideline contained no equivalent restriction, so this closes a gap that previously existed.

The approval period itself has also changed. Where 2023 capped LHDN approval at five years, the 2026 guideline extends this to ten years, halving how often a fund needs to reapply.

Reporting obligations for larger donors have tightened in the opposite direction. Under 2023, only donors giving RM20,000 or more needed to be individually reported to LHDN. The 2026 guideline lowers this threshold to RM10,000, meaning more donors will now have their details submitted to the tax authority.

These four changes are only part of a wider set of revisions between the two guidelines, covering funding sources, treatment exclusions, e-Invois requirements, and dissolution procedures, among others. Anyone who wants the complete picture are encouraged to download and read both documents directly, LHDN's Garis Panduan Permohonan untuk Kelulusan Ketua Pengarah Hasil Dalam Negeri di bawah Subseksyen 44(6) ACP bagi Tabung Kebajikan Hospital, dated 4 September 2026, together with the earlier version dated 28 March 2023.

If you wish to focus on running and growing your business, our CFO advisory team can take care of your accounting, payroll, tax planning, e-stamping, corporate secretarial and compliance matters for you. Feel free to WhatsApp us at 010-246 2151.

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No. 12-1, Jalan Astaka 1C/KU2, Bandar Bukit Raja
Klang
41050

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+60333582128

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