LHDN is getting stricter on compliance transparency. For the Year of Remuneration 2025, they haven't just changed the rules—they have changed the form itself.
Here are the 3 big updates KS Chia & Associates wants you to know.
1. The New "Part B": Tax Agent Accountability
In previous years, the declaration section was straightforward. This year, LHDN has restructured the form:
Part B is now exclusively for "Particulars of Tax Agent Who Completes This Return Form".
Part C is now the Employer's Declaration.
What this means: LHDN wants to know exactly who is preparing the data. It distinguishes between employers doing it themselves versus those using professional, approved tax agents. If you engage a firm like ours, we will complete Part B with our Tax Agent Approval No., giving you an added layer of professional assurance.
2. Who is an "Employee"? (The List Has Grown)
LHDN has updated the instructions for Part A (Number of Employees) and the C.P.8D. You must now explicitly include:
Managers & Principal Officers
Partners, General Partners & Designated Partners (for LLPs)
Resident Directors & Officers (for Labuan Entities)
If you run an LLP or a Labuan entity, you can no longer leave these individuals off the list just because they aren't "standard staff."
3. MTD Timing Confirmed
The notes also clarified the year-end cutoff. MTD deducted from December 2025 payroll belongs to the 2025 Tax Year, even if the cash is paid to LHDN in January 2026.
Summary
The new Part B makes it clear: tax reporting is a professional responsibility. Don't risk errors on the new C.P.8D columns or the MTD cutoff.
KS Chia & Associates (AF001828) WhatsApp us: 011 2366 5233
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