Form C YA 2026: Key Changes

Form C YA 2026: Key Changes and Updates Explained

LHDNM just released the new Form C for YA 2026. If you run a company in Malaysia, you need to understand how these reporting changes affect your annual tax filing. Our team compared the YA 2025 and YA 2026 forms to highlight the most important updates.

 

New Disclosures for Labuan and Venture Capital Entities

The YA 2026 form introduces three new disclosure items in the basic particulars section. Companies must now declare if they are a Labuan company (Item 19), a Venture Capital Company (Item 20), or a Venture Capital Management Company (Item 21). These items did not exist in the YA 2025 form.

LHDNM also added specific lines in the chargeable income section — A21 for Venture Capital Fund Entity income and A22 for Venture Capital Management income. The tax payable section now includes dedicated rate lines: 5% for VC Fund Entities and 10% for VC Management Companies.

Beneficial Owner Section Removed

One major change is the complete removal of the "Beneficial Owner" section from Part G. This removal addresses significant practical challenges raised by industry bodies like CTIM. Previously, tax practitioners struggled to acquire BO information because company secretaries were often restricted from releasing this confidential data without explicit director consent. There was also a timing mismatch between CCM anniversary filings and tax financial year-ends. LHDNM has acknowledged these challenges, and this duplicative reporting requirement is now gone in YA 2026.

Expanded Top-up Tax Reporting

For multinational companies, the reporting for Domestic Top-up Tax (DTT) and Multinational Top-up Tax (MTT) has been expanded. Instead of a simple Yes/No, companies must now specify if they are subject to DTT only, MTT only, both, or neither. The Ultimate Parent Entity's name and jurisdiction are now captured in separate fields.

Declaration Wording Updated

The declaration section now includes "to the best of this company's knowledge" — a new qualifier that was not present in YA 2025. Directors signing the declaration should take note of this change.

Direct Communication with Taxpayers

A very notable addition is the new standalone fields for the company's telephone number (G3) and email address (G4) in Part G. This indicates that LHDNM intends to communicate directly with the taxpayer company, rather than relying solely on correspondence through the appointed tax agent. Companies should ensure the contact details provided here are actively monitored.

Other Changes

The transfer pricing section replaces generic "Others" options with more specific descriptions like "Manufacturer other than the above." The CbCR reporting entity attachment now includes a TIN field for the ultimate holding entity.

Need Help?

Contact KS Chia & Associates (AF001828) for professional advice on your corporate tax filing under the new Form C YA 2026 requirements. WhatsApp us at 011 2366 5233.