Form C Tax Filing: The Malaysian Inland Revenue Board (LHDN) keeps pushing its digital transformation efforts. This means companies that pay taxes need to know their responsibilities especially when it comes to submitting Form C for the Year of Assessment (YA) 2025. This guide gives you a thorough look at what you need to do, when you need to do it, and how to best handle Form C submission deadline 2025.
What is Form C?
Form C serves as the designated tax return for companies operating in Malaysia. It covers all corporate entities, both resident and non-resident, including Sdn Bhd and Berhad companies. Malaysia’s tax system relies on self-assessment, which means companies have to report their taxable income and figure out how much tax they owe. Form C submission deadline 2025 isn’t optional – it’s a legal requirement. Companies that don’t comply, risk facing hefty fines.
Key Filing Deadlines for 2025
Here are the Form C tax filing deadlines for YA 2024:
- Manual Submission: Companies have 7 months after their financial year-end to submit.
- E-Filing Submission: Companies get 8 months from the financial year-end for electronic submissions.
Example: A company with a financial year ending on 31 December 2025 must submit by 31 July 2026, or by 31 August 2026.
Keep in mind that not all forms qualify for the e-filing extension. Companies should check their specific filing requirements.
Getting Ready For Form C Submission Deadline 2025:
To make sure filing goes well, companies should follow these steps:
- Accurate Financial Statements: Put together complete financial statements, including the profit and loss account, balance sheet, and notes to the accounts.
- Tax Computation: Work out the taxable income and tax owed taking into account all allowed deductions and exemptions.
- Supporting Documents: Collect all important documents such as invoices, receipts, and contracts, to substantiate income and expenses.
- Review and Verification: Do a careful check to make sure everything is correct and follows tax laws and rules.
Common Pitfalls to Avoid
- Late Submission: If you don’t turn in Form C on time, you could face fines. These range from 10% to 45% of the tax you owe based on how long you delay.
- Incorrect Tax Computation: If you make mistakes when calculating your tax, you might have to pay extra and face penalties.
- Incomplete Documentation: If you don’t have all the right papers, it can make it hard to prove your claims and deductions.
- Non-Compliance with E-Invoicing Requirements: Soon, the impending e-invoicing will be implemented. Companies need to make sure their billing systems follow the rules.
Using E-Invoicing to Follow the Rules
The Malaysian government plans to require e-invoicing for all companies starting 1 August 2024. This move aims enhance transparency, reduce tax evasion, and streamline the tax reporting process
Our E-Invoicing Software helps businesses adapt to this change. As a Peppol-Ready Solution Provider (PRSP), Info-Tech makes sure its system works with LHDN’s MyInvois platform, allowing for instant invoice sending and rule-following.
Using Tech to Make Tax Filing Easier
Using advanced software solutions has a big impact on making tax filings more efficient and accurate. Info-Tech’s E-Invoicing platform comes with these features:
- Automated Invoice Generation: Make and send invoices reducing manual mistakes.
- Real-Time Data Synchronization: Keep financial data updated and ready to use for tax calculations.
- Compliance Monitoring: Get updates about rule changes and stay compliant.
When companies bring in these technologies, they can simplify their tax processes, reduce errors, and ensure timely submissions.
Conclusion
Timely and accurate submission of Form C is crucial for corporate compliance in Malaysia. As deadlines get closer and e-invoicing becomes a must, businesses need to get ready for these changes now. Using strong software like Info-Tech‘s E-Invoicing system can help make this switch easier keeping companies in line with the law and working well.
Keep up with the times by adopting online tools and making sure your company stays in line with the changing tax scene.