Budget 2026 introduces both a new tax incentive and a key compliance milestone for Malaysian SMEs. Businesses with RM500,000-RM5 million turnover can now upgrade IT systems for e-Invoice compliance while claiming 100% capital allowances within 2 years instead of 3 years.

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💻 Accelerated Capital Allowance (ACA) for ICT Upgrades

To help SMEs digitalise and prepare for e-Invoice implementation, the Government has announced a special Accelerated Capital Allowance (ACA) for ICT assets.

✅ Eligible period: 11 October 2025 – 31 December 2026

✅ Applies to: ICT hardware, software, and digital infrastructure (local or imported)

✅ Claim 100% within 2 years (instead of 3 years)

• Year 1: Initial Allowance 20% + Annual Allowance 40% = 60%
• Year 2: Remaining 40%

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💡 Example: RM100,000 ICT Investment

Accelerated Capital Allowance (Budget 2026):

• Year 1 deduction: RM60,000 (20% IA + 40% AA)
• Year 2 deduction: RM40,000 (40% AA)
• Total write-off period: 2 YEARS ✓

💰 The Benefit: You can fully write off the cost within 2 years instead of 3, improving cash flow and accelerating tax relief timing. That's an additional RM20,000 deduction in Year 2 compared to normal rates!

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⚠️ Mandatory e-Invoice Implementation

Under IRBM's phased rollout schedule:

📅 1 January 2026 – Businesses with turnover RM1 million – RM5 million

📅 1 July 2026 – Businesses with turnover RM500,000 – RM1 million

📅 Below RM500,000 – Exempted (until further notice)

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Key Requirements:

• Suppliers must issue an e-Invoice upon each transaction
• Once validated by IRBM, buyers have 72 hours to accept, reject, or request cancellation
• e-Invoices are transmitted via the MyInvois Portal or API integration
• Non-compliance may lead to penalties or disruption in invoicing

🤝 Good News: All businesses get a 6-month grace period from their respective implementation dates to ensure smooth transition.

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✅ Action Plan for SMEs

1️⃣ Maximise the ACA Benefit

• Plan ICT system upgrades before 31 Dec 2026
• Replace outdated computers, software, and servers
• Enjoy faster capital allowance claims

2️⃣ Prepare for e-Invoice

• Check your turnover category and applicable deadline
• Upgrade to an e-Invoice-ready accounting system
• Train staff and test your e-Invoice workflow early

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💬 Need Help Planning Your ACA Claim or e-Invoice Readiness?

Our tax advisory team can help you develop a customized strategy.

📱 WhatsApp: +60 11-2366 5233 🌐 www.kschia.com.my

Schedule a complimentary consultation today!

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About KS Chia & Associates (AF 001828) "20 Years of Excellence"

📞 Office: 03-6258 3692 📱 WhatsApp: +60 11-2366 5233 📧 Email: info@kschia.com.my 🌐 Website: www.kschia.com.my

Licensed Audit & Tax Firm • Kuala Lumpur

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#Budget2026 #eInvoice #ACA #SMEMalaysia #TaxUpdate #Digitalisation  #KSChiaAssociates

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🚀 Budget 2026: e-Invoice Compliance Meets ACA Benefit for SMEs

📅 Published: 14 October 2025 | 📝 KS Chia & Associates | ⏱️ 3 min read

Budget 2026 introduces both a new tax incentive and a key compliance milestone for Malaysian SMEs. Businesses with RM500,000-RM5 million turnover can now upgrade IT systems for e-Invoice compliance while claiming 100% capital allowances within 2 years instead of 3 years.

💻 Accelerated Capital Allowance (ACA) for ICT Upgrades

To help SMEs digitalise and prepare for e-Invoice implementation, the Government has announced a special Accelerated Capital Allowance (ACA) for ICT assets.

✅ Eligible period: 11 October 2025 – 31 December 2026

✅ Applies to: ICT hardware, software, and digital infrastructure (local or imported)

✅ Claim 100% within 2 years (instead of 3 years)

• Year 1: Initial Allowance 20% + Annual Allowance 40%
• Year 2: Remaining 40%

💡 Example: RM100,000 ICT Investment

Accelerated Capital Allowance (Budget 2026)

Year 1 deduction: RM60,000 (20% IA + 40% AA)

Year 2 deduction: RM40,000 (40% AA)

Total write-off period: 2 YEARS ✓

💰 The Benefit: You can fully write off the cost within 2 years instead of 3, improving cash flow and accelerating tax relief timing. That's an additional RM20,000 deduction in Year 2 compared to normal rates!

⚠️ Mandatory e-Invoice Implementation

Under IRBM's phased rollout schedule:

Implementation Date	Annual Turnover
1 Jan 2026	RM1 million – RM5 million
1 Jul 2026	RM500,000 – RM1 million
Exempted	Below RM500,000 (until further notice)

Key Requirements:

• Suppliers must issue an e-Invoice upon each transaction
• Once validated by IRBM, buyers have 72 hours to accept, reject, or request cancellation
• e-Invoices are transmitted via the MyInvois Portal or API integration
• Non-compliance may lead to penalties or disruption in invoicing

🤝 Good News: All businesses get a 6-month grace period from their respective implementation dates to ensure smooth transition.

✅ Action Plan for SMEs

1️⃣ Maximise the ACA Benefit

• Plan ICT system upgrades before 31 Dec 2026
• Replace outdated computers, software, and servers
• Enjoy faster capital allowance claims

2️⃣ Prepare for e-Invoice

• Check your turnover category and applicable deadline
• Upgrade to an e-Invoice-ready accounting system
• Train staff and test your e-Invoice workflow early

💬 Need Help Planning Your ACA Claim or e-Invoice Readiness?

Our tax advisory team can help you develop a customized strategy

📱 WhatsApp: +60 11-2366 5233

Schedule a complimentary consultation

KS Chia & Associates (AF 001828)

"20 Years of Excellence"

📞 Office: 03-6258 3692
📱 WhatsApp: +60 11-2366 5233
📧 Email: info@kschia.com.my
🌐 Website: www.kschia.com.my

Budget2026 eInvoice ACA SMEMalaysia TaxUpdate Digitalisation TaxPlanning

Budget 2026 Malaysia: Essential Tax Changes You Need to Know

 

By: KS Chia & Associates - Licensed Tax Agents, Kuala Lumpur

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⚡ Quick Summary (TL;DR)

Budget 2026 announced 40 tax measures on 10/10/25. Three require immediate action:

1. LLP Partners: NEW 2% tax on distributions >RM100k (Act by 31/12/25 for tax-free window)
2. Businesses: Capital allowance 100% in 2 years - BUT local manufacturers ONLY
3. Individuals: Multiple reliefs expanded (childcare RM2k→RM3k, learning disabilities, CCTV)

👇 Skip to your section: LLP Partners | Business Owners | Working Families

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🚨 URGENT: New LLP Tax (Deadline: 31/12/25)

What's Changing

LLP profit distributions were 100% tax-exempt. From YA 2026: distributions >RM100k taxed at 2%.

Critical Deadline

31 December 2025 = Last day for 100% tax-free distributions (YA 2025)

⚠️ Don't Convert to Sdn Bhd!

Common mistake: "I'll convert my LLP to Sdn Bhd to avoid the tax"

Reality: Sdn Bhd dividends ALSO taxed at 2% (from YA 2025 - already in effect!)

What to Do NOW

✅ Calculate your YA 2026 distribution exposure
✅ Consider accelerating profits to YA 2025 (if cash flow permits)
✅ Review optimal distribution amounts per partner

Need help? Free assessment available 👇

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⚠️ Capital Allowance: The Local Manufacturer Trap

The Good News

Claim 100% capital allowance in 2 years (was 3-10 years):

• Year 1: 20% + 40% = 60%
• Year 2: 40%
• Total: 100% in 2 years

The Catch (CRITICAL!)

Only for machinery from LOCAL manufacturers!

Who Qualifies vs Who Doesn't

Real Impact: RM100k Machinery

Local Manufacturer (2 years):

• Year 1: Claim RM60,000
• Year 2: Claim RM40,000
• Tax saving @ 24%: RM14,400 (Year 1)

Imported (7 years):

• Year 1: Claim RM34,000
• Years 2-7: Spread over 6 more years
• Tax saving @ 24%: RM8,160 (Year 1)

Difference: RM6,240 cash flow advantage in Year 1 for local machinery!

Before You Buy: Verification Checklist

Most Malaysian SMEs import specialized machinery. Don't assume you qualify!

Verify:

1. Is supplier the actual manufacturer or just distributor?
2. Where is machinery manufactured? (Malaysia vs imported)
3. Get manufacturer's SSM registration
4. Obtain written manufacturer declaration
5. Document for LHDN audit

Purchase Deadline: 11/10/25 to 31/12/26 (only 14.5 months)

Our Service: We'll verify your supplier's qualification before you commit. Contact us 👇

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👨‍👩‍👧 Individual Tax Reliefs - What's Expanded

1. Childcare Relief: RM2,000 → RM3,000 ✅

What Changed:

• Increased to RM3,000 (permanent)
• Age limit: Up to 12 years (was 6)
• Includes after-school transit centers

Tax Saving: ~RM240-260 per year

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2. Learning Disabilities: RM6,000 → RM10,000 ✅

Covered:

• Assessment, diagnosis, early intervention
• Rehabilitation for autism, ADHD, GDD, Down syndrome
• Children aged 18 and below

Tax Saving: ~RM2,400 at 24% rate

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3. Life Insurance: Now Includes Children ✅

Previous: RM3,000 for self & spouse only
New: RM3,000 now includes children's life insurance

Child Eligibility:

• Below 18 and unmarried, OR
• 18+ unmarried pursuing tertiary education, OR
• Disabled children (no age limit)

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4. CCTV & Home Safety: RM2,500 Relief ✅

New Items:

• CCTV systems for home
• Food waste grinders

Claim: Once within 2 years (YA2026-2027 only)

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5. Tourist Attractions: RM1,000 Relief ✅

New for YA2026:

• Entrance fees to museums, theme parks, zoos
• Cultural and art programmes

Tax Saving: ~RM240

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🤖 AI Training Incentive for MSMEs

Who: MSMEs (including HRDF contributors)
Benefit: Extra 50% tax deduction on AI training
Frequency: Once every 2 years
Period: YA2026-2027

Example:

• Spend RM20,000 on AI training
• Total deduction: RM30,000 (RM20k + RM10k extra)
• Tax saving @ 24%: RM7,200
• Effective cost: RM12,800

Requirements: Training must be recognized by MyMahir/NAICI

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🏢 Other Key Business Measures

Foreign Income: Extended Exemption

• Dividends & capital gains from overseas
• Extended 4 years (2027-2030)

Bursa Listing: Expanded Eligibility

• Now includes energy & utilities MSMEs
• RM1.5 million deduction on listing costs
• YA2026-2030

Stamp Duty Changes

• Non-citizens: 4% → 8% (residential property)
• First home: Exemption extended to 2027 (up to RM500k)
• Employment contracts: Threshold RM300 → RM3,000

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✅ Your Action Plan

For LLP Partners (URGENT - By 31/12/25)

1. Calculate YA2026 distribution exposure
2. Review cash flow for YA2025 accelerated distributions
3. Assess partnership agreement flexibility

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For Businesses (Before Machinery Purchase)

1. Verify manufacturer location (Malaysia vs imported)
2. Request SSM registration & manufacturing license
3. Get written manufacturer declaration
4. Calculate: local premium vs tax benefit
5. Time purchases within deadline (by 31/12/26)

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For Individuals & Families 

1. Review childcare expenses & documentation
2. Assess learning disability treatment costs
3. Consider CCTV/food waste grinder purchase (YA2026)
4. Plan domestic tourism with entrance fees
5. Review life insurance for children

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For MSMEs (Planning AI Training)

1. Identify AI training needs
2. Verify provider recognition (MyMahir/NAICI)
3. Budget for YA2026 or YA2027
4. Submit application to TalentCorp
5. Document expenses properly

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🚫 Common Mistakes to Avoid

❌ Mistake 1: Converting LLP to Sdn Bhd

Why wrong: Both have 2% tax. LLP actually better (RM100k threshold).

❌ Mistake 2: Assuming All Machinery Qualifies

Why wrong: Only Malaysian-made qualifies. Most machinery is imported.

❌ Mistake 3: Waiting Until December

Why wrong: LLP deadline 31/12/25. Capital allowance deadline 31/12/26. Plan now!

❌ Mistake 4: Incorrect AI Training Calculation

Why wrong: It's EXTRA 50% (not 150% total). Verify training recognition.

❌ Mistake 5: Thinking Budget = Final Law

Why wrong: Finance Bill Part 2 coming. May have changes or additions.

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💼 Need Professional Guidance?

Budget 2026's 40 measures require expert navigation. We're offering:

🎁 FREE Budget 2026 Impact Assessment (30 minutes)

We'll analyze: ✅ Which measures affect your specific situation
✅ Exact RM tax impact calculations
✅ Strategic planning recommendations
✅ Action timeline with deadlines

Our Services:

• LLP distribution optimization
• Capital allowance verification
• Individual tax relief maximization
• Business incentive applications
• Year-end tax planning

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📞 Contact Us 

KS Chia & Associates
Licensed Audit & Tax Firm • Kuala Lumpur

Get Your Free Assessment:

• WhatsApp: +60 11-2366 5233 (fastest response)
• Phone: 03-6258 3692
• Email: info@kschia.com.my
• Website: www.kschia.com.my

Office Hours: Mon-Fri 8.30am-5.30pm

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🎯 Key Takeaways

1. LLP partners: Act by 31/12/25 for last tax-free window
2. Businesses: Verify local manufacturer status BEFORE buying machinery
3. Individuals: Multiple reliefs expanded - maximize your claims
4. MSMEs: AI training offers 50% extra deduction
5. Stay alert: Finance Bill Part 2 coming with more details

Don't wait until December. Strategic planning today saves thousands tomorrow.

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About KS Chia & Associates

Licensed audit and tax firm serving Malaysian businesses since 1995. We specialize in tax planning, audit, and business advisory for SMEs.

Credentials: Licensed by MOF | Approved LHDN tax agents | 30-person professional team | 500+ clients nationwide

#Budget2026 #MalaysiaTax #TaxPlanning #LLPTax #CapitalAllowance #KualaLumpur #SMEMalaysia #TaxRelief #YA2026

🚨 MAJOR UPDATE: IRBM PCB Notification System Launched!

 IRBM Now Sends PCB Notifications via Email – What Malaysian Employees & Employers Must Know (Oct 2025)

Lembaga Hasil Dalam Negeri Malaysia (HASiL/IRBM) now delivers Potongan Cukai Bulanan (PCB) notifications directly to individual taxpayers via email, effective from 17 September 2025. 

This enhancement, part of IRBM’s push for transparency and digital services, covers PCB details for August 2025 onwards, sent to taxpayers’ email addresses registered in the MyTax portal.

Why Is This Important?

• Direct confirmation: Employees can now directly confirm that PCB submitted by employers has been credited to their tax ledger each month.

• Enhanced transparency: Immediate and official monthly updates from IRBM increase trust in tax deductions.

• Digital convenience: Access PCB records and detailed tax account status via MyTax and official IRBM email notifications.

What Should You Do?

• Keep your email address updated in MyTax to receive timely PCB notifications.

• Check your PCB payment status via the PCB link and tax account details in the MyTax portal.

• For questions, contact IRBM via Hasil Contact Centre, Live Chat, or feedback form through their official channels.

KS Chia & Associates, as your trusted tax agent, recommends updating your firm records and informing employees about this new process for smooth compliance!

Any queries? Contact KS Chia & Associates (Whatsapp: +60 11-2366 5233)

Source: https://www.hasil.gov.my/media/qiwhd4f3/20251003-kenyataan-media-hasil-hasil-tingkat-ketelusan-notifikasi-pcb-diperkenal-melalui-emel.pdf

#PCBMalaysia #IRBM #MyTax #TaxCompliance #KSC Associates #MalaysiaTax #PCBEmailNotification #TransparentTax

New Free Tools: Master Your LHDN Deadlines in Real-Time

CP204 Deadlines | Form C Countdown | Chartered Accountants KL

Published: 1 October 2025

KS Chia & Associates launches two essential, free deadline trackers for Form C and CP 204/CP 204A. Stop worrying about penalties and stay ahead of your mandatory LHDN compliance with accurate, real-time data.

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Why Your KL Business Needs These Tools Today

The biggest threat to profitability is unexpected penalty charges. In Malaysia, late or incorrect submission of tax estimates and returns can trigger fines of 10% to 45%. Our innovative tools are designed to provide the absolute certainty required by every Malaysian SME and corporate entity.

Tool 1: The Form C Filing Countdown ⏳

Your annual Corporate Tax Return (Form C) is due eight months after your financial year end. Our interactive, real-time countdown eliminates confusion, ensuring your firm has the full eight months to prepare, audit, and file without last-minute panic.

Tool 2: The CP 204/CP 204A Smart Notices 📊

This is where the complex LHDN rules meet simplicity. This smart tool gives you the exact date for all key compliance actions:

• Initial CP 204 Submission: Confirms the deadline, which occurs one month before your new basis period starts (e.g., 31 October for a 30 November year-end).

• CP 204A Revisions: Tracks the due dates for the 6th, 9th, and 11th-month revisions. Using these revision dates strategically is vital to adjusting cash flow and avoiding the $10\%$ underestimation penalty.

Integrated Support for Total Confidence

Our commitment goes beyond tracking dates. Every tool provides:

• Penalty Information: Instant visibility of potential fines for late filing or underestimation.

• Direct Consultation: One-click access to our Chartered Accountants for expert advice on MFRS, MPERS, and tax strategy.

Ready to transform your tax compliance process? Use our expertise and digital innovation to drive efficiency and transparency in your business today.

🔗 Access Your Free Tax Deadline Tools Now → www.kschia.com.my

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KS Chia & Associates: 20 Years of Excellence in Audit, Tax, and Accounting in Kuala Lumpur.

#TaxCompliance #CP204 #FormC #LHDNMalaysia #AuditFirmKL #TaxEstimate #SMEtaxation