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With the nationwide rollout of e-invoicing in Malaysia, one of the most common questions puzzling both employers and employees is: “How do we handle employee expense claims?” When an employee pays for something out-of-pocket, who should the e-invoice be issued to—the employee or the company? Getting this wrong can lead to compliance issues and complications […]
Malaysia’s Sales and Service Tax (SST) system is made up of two distinct parts. We have often discussed Service Tax, which applies to services. Today, let’s focus on the other half: Sales Tax. A common misconception is that this tax is applied at every stage of a product’s journey. However, the reality is much simpler. […]
In a recent announcement that brings significant relief to many small and medium enterprises (SMEs), the Ministry of Finance Malaysia has introduced two major updates to the Service Tax (SST) framework. These changes are aimed at lightening the tax burden on small businesses affected by the recent expansion of the SST scope. The two key […]
For businesses that are part of a larger corporate group, internal transactions are a daily reality. One company in the group might rent office space or equipment to another. The question is: do these internal “sales” need to be charged with the 8% Service Tax (SST)? The good news is that under specific conditions, they […]
For every business owner in Malaysia, one of the most critical aspects of managing company finances is understanding what you can—and cannot—claim as a tax-deductible expense. Correctly identifying allowable expenses can significantly reduce your company’s taxable income, leading to lower tax payments. However, the rules can be confusing. To provide clarity, this guide, based on […]
While the e-invoicing system offers conveniences like issuing a “consolidated e-invoice” to summarize multiple transactions into one, this is not a universal rule. The Inland Revenue Board of Malaysia (LHDN) has specified certain industries and transaction types where consolidation is strictly prohibited. For these specific cases, businesses are required to issue a separate e-invoice for […]
As the Inland Revenue Board of Malaysia (LHDN) continues to centralize all tax matters onto its MyTax portal, one of the most powerful features for business owners is the “Permohonan Peranan” (Role Application) function. This system is the key to managing multiple tax responsibilities—your personal tax, your company’s tax, and your duties as an employer—all […]
The Inland Revenue Board of Malaysia (LHDN or HASiL) has issued a significant press release today, June 30, 2025, to clarify the application of the 2% withholding tax under Section 107D of the Income Tax Act 1967. The clarification specifically addresses the situation involving payments made to agents, dealers, or distributors (referred to as EPP) […]
Attention landlords and tenants! A crucial one-year service tax exemption period for certain commercial rental agreements is set to begin tomorrow, July 1, 2025. This is a significant transitional relief measure announced to help businesses locked into long-term, fixed-price contracts that were signed before the full enforcement of the 8% service tax on rental services. […]
As Malaysian businesses adapt to the mandatory e-invoicing system, many are encountering specific, complex transaction types. One of the most common questions is: “How do I issue an e-invoice for payments made to individuals who are not running a business, like freelancers, agents, or members of the public?” The answer lies in a “self-billed e-invoice”—an […]