“Boss, this one just upload PDF only?”

That is a common response we hear from our SME client

But as your tax agent, we see the full picture and it is far more serious than it sounds.

Effective 1 April 2025, LHDN requires all companies and LLPs to submit supporting documents through the Malaysian Income Tax Reporting System (MITRS), within 30 days of filing the annual tax return.

The required documents include:
• Financial statements (audited or unaudited)
• Tax computation
• Capital allowance schedule
• Incentive computation, if applicable

All documents must be submitted in PDF format and limited to a total of 20MB in the MITRS system (not email to officer).

No extension will be granted. Late submission may attract penalties under Section 120(1) of the Income Tax Act 1967, including fines between RM200 and RM20,000, imprisonment up to six months, or both.

Why this change?

Some may argue that Malaysia has operated under a self-assessment system for over 25 years. so why is there now a need to submit these supporting documents?

LHDN aims to improve tax compliance through:
• Standardised and trackable document submission
• Greater transparency under the self-assessment regime
• Streamlined audit readiness
• Better data management for enforcement and profiling

At KTP, we are taking this seriously.

We are:
• Training our internal team on MITRS procedures
• Developing a firm-wide SOP to ensure all clients are properly supported
• Establishing a fee structure with clear check-and-balance to manage the additional compliance cost

MITRS is not optional. It is now a mandatory post-filing compliance step under the tax law.

If you are a company director, finance head, or SME owner, we strongly encourage you to engage early with your tax agent or advisor.