Boss received some good news.
SSM Compound Reduction has been extended to 31 December 2026!

He immediately called his Company Secretary.
“Wah! SSM got Discount!”

“My RM10,000 above Compound can get 90% Discount ah?”
Secretary replied.

“Boss, how much Discount this round, we need to confirm with SSM.”
“Also, you haven’t filed your Annual Returns and Financial Statements for 3 years. Need to settle those first.”

Boss thought for a while.
“Then I pay the Compound first lah. Audit next year only do.”

Secretary went silent for 3 seconds.
“Boss, you forgot about LHDN ah?”

Boss got a shock.
“Eh! Why suddenly LHDN also involved?” 😂

Apparently.
Boss’s company had not done its Audit for 3 years.

3 years without filing Financial Statements.
3 years without filing Annual Returns.
3 years without submitting Form C.

Back then, Boss thought he was very clever.

“Company no business already. Do Audit for what?”
“Save a few thousand ringgit every year.”
“3 years can save more than RM10,000!”

Boss thought he had made a smart move.
Until he discovered something.

SSM sends one bill. More than RM10,000.
LHDN sends another bill. Also potentially more than RM10,000.😂

One company, three parties collecting money.
Now Boss finally understands what Triple Kill means! 😂

Actually, SSM announced on 9 October 2026.
Compound Reduction has been extended to 31 December 2026.

But not every company automatically qualifies.
You must meet the conditions and take the necessary Remedial Action.

For example, submit your outstanding documents or formally start the company closure process.
You cannot just pay the Discounted Compound.
Then pretend nothing happened.

Even worse.
Many SME bosses have one common misunderstanding.
“Dormant Company, no need Audit, no need file Tax Return lah!”

No business does not mean no Compliance Obligation.
Audit Exemption has conditions.

SSM Filing has deadlines.
Form C also has its own requirements.

Unless your company qualifies for Audit Exemption, it generally still needs Audited Accounts.
And the SSM problem is not just one Compound.

Different Sections of the Company Act 2016
Different Financial Years.
Different Officers in Default.
Each may carry separate liabilities.

LHDN also won’t automatically close one eye just because your company is Dormant.
Late submission of Form C may result in Penalties.

If your original intention was just to save Audit Fees.
Now you may have to catch up on years of Audit, Filing and Penalties.

So, if your Sdn Bhd has been left unattended for years.

First, check your outstanding SSM Compounds.
Update your Accounts and outstanding Filings.
Confirm whether Audit Exemption applies.
Settle your outstanding Form C.
Then confirm the Reduction Rate and eligibility conditions with SSM.