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Daily Express
7 days ago
- Business
- Daily Express
Coastal folks to feel climate change effects
Published on: Thursday, July 17, 2025 Published on: Thu, Jul 17, 2025 By: Sisca Humphrey Text Size: Petrus (fourth, right) and Faisha (fourth, left) with key delegates at the conference. Kota Kinabalu: Independent Non-Executive Chairman of Life Water Berhad, Datuk Petrus Gimbad, has urged risk professionals to take climate change seriously, warning that Sabah's coastal communities could face mounting threats from rising sea levels and extreme weather events. Delivering the keynote address at the Marim International Conference 2025 on Tuesday, Petrus, who is also a private consultant (Sabah Government Representative) to the Inland Revenue Board of Malaysia, said global warming is on track to exceed the 1.5°C threshold unless fossil fuel dependency is significantly reduced. Advertisement 'Global warming is real. Unless the world reduces its appetite for fossil fuels, we will overshoot 1.5°C,' he said. He stressed that organisations must adopt whole-system approaches to sustainability, including full life cycle assessments of their operations, and align business practices with environmental, social and governance (ESG) goals. Petrus also cited lessons from China and Singapore, where energy transition strategies are being balanced with the need for reliability and development. 'Sabah must plan carefully. We have financial and infrastructure limitations, especially on the east coast, and these must be addressed if we are to pursue large-scale renewable energy options,' he said. Marim Chairman Muhammad Faisha Shahriman called on risk professionals to move beyond compliance and become strategic leaders within their organisations. 'We are expected to make sense of changes in regulation, policy, economics and technology and to help organisations respond in ways that are timely, strategic and sound,' he said. Held for the first time in Sabah, the two-day conference attracted over 300 participants and 24 exhibitors, with more than 60 per cent of attendees representing government-linked companies (GLCs). Themed 'The Antifragile Risk Manager – Resourceful, Resilient, Relevant' the event aims to strengthen the capacity of risk leaders to manage complex threats and support sustainable growth. Faisha also highlighted Marim's recent partnership with the UK-based Institute of Risk Management (IRM) to expand global certification pathways for Malaysian professionals. He acknowledged long-standing support from the Labuan International Insurance Association (LIIA) and the Malaysian Insurance and Takaful Brokers Association (MITBA). Participants at the conference include professionals from sectors such as oil and gas, banking, infrastructure, agribusiness, telecommunications, manufacturing and legal services. Key topics being discussed over the two days include ESG, cyber risk, climate transition, corporate governance and risk culture. The event is supported by corporate sponsors across the insurance, energy, financial and consultancy sectors, including platinum sponsor Howden Malaysia. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
New Straits Times
01-07-2025
- Business
- New Straits Times
E-invoicing Phase 3 begins for businesses earning RM5mil–RM25mil
CYBERJAYA: The Inland Revenue Board of Malaysia (IRB) is accelerating its digital tax compliance drive with the rollout of Phase 3 of e-invoicing today, a move set to impact around 55,000 businesses earning between RM5 million and RM25 million annually. IRB Deputy Chief Executive Officer (Tax Operations) Shaharrudy Othman said the agency is committed to providing continuous support to taxpayers, particularly micro, small and medium enterprises (MSMEs), through various promotional and educational programmes. "IRB is actively stepping up efforts to educate and raise awareness among target groups to ensure that the e-Invoice implementation is comprehensive and effective," he said at the launch ceremony and media conference on the implementation of e-Invoice for Phase 3 held here today. Shaharrudy said a total of 352 million e-invoices have been submitted via the MyInvois system to date. "This involves over 37,800 taxpayers, including about 5,400 taxpayers from Phase 1 and more than 13,000 taxpayers from Phase 2. "Furthermore, over 19,000 taxpayers have voluntarily adopted e-invoicing ahead of their scheduled implementation dates," he said. Last month, IRB announced that Phase 4 of the e-invoice implementation for taxpayers with annual income or sales between RM1 million and RM5 million has been postponed to Jan 1, 2026. Phase 5, involving the income group of up to RM1 million, will commence on July 1, 2026. Meanwhile, taxpayers with an annual income or sales below RM500,000 are exempted from the initiative. Shaharrudy added that the grace period for the implementation of e-invoicing for Phase 2, involving businesses with an annual revenue between RM25 million and RM100 million, had ended on June 3, and taxpayers must now fully comply with the guidelines. "To ensure ongoing support for MSMEs who are starting their e-invoicing implementation from today, IRB has increased the number of briefing sessions and expanded the use of the MyInvois Portal nationwide. "IRB has also created a dedicated e-invoicing microsite on the agency's official portal and is using various communication channels to disseminate relevant information," he said. Shaharrudy said the agency will continue to enhance communication across businesses, tax practitioners, professional bodies and stakeholders to raise awareness and improve their understanding of the benefits of e-invoicing implementation. "To facilitate a smooth implementation, we have also set up dedicated service counters nationwide to assist taxpayers in understanding the use of the MyInvois Portal, MyInvois application and the free-to-use MyInvois e-Pos system," he said. IRB also launched the MyInvois e-Pos system, which is designed for MSMEs with annual income or sales of under RM750,000. Shaharrudy said the system simplifies the implementation of e-invoicing by integrating core business functions such as sales recording, inventory management, financial reporting and e-invoice support. He added that the system also aims to help MSMEs enhance business operational efficiency while facilitating the smooth implementation of e-invoicing.
The Star
16-06-2025
- Business
- The Star
Tax updates: What every business needs to know
AS Malaysia charts its path toward fiscal resilience, the Ministry of Finance (MOF) and Inland Revenue Board of Malaysia (IRB) has rolled out a series of regulatory updates that will shape how businesses manage compliance going forward. The newest updates – sales and service tax (SST) expansion, exemptions on stamp duty for employment agreements, and revised timeline for e-invoicing rollout – signal the next step toward a more equitable, transparent and digitally enabled tax environment. Importantly, these changes also reflect a growing commitment from the government to balance compliance expectations with stakeholder engagement, allowing businesses – especially small and medium enterprises (SMEs) – to better prepare, adapt, and thrive. With the right support, these reforms could present meaningful opportunities to enhance competitiveness, operational efficiency, and trust in Malaysia's business ecosystem. SST expansion The SST expansion is part of the government's broader fiscal consolidation strategy under the Ekonomi Madani framework. Key objectives include: > Broadening the tax base: By including more discretionary and luxury services – such as private healthcare, beauty services, leasing, and financial services – the government aims to diversify revenue sources without widening the tax burden on the general population. > Progressive taxation: Essential goods and services remain exempt, helping ensure that lower-income groups are not disproportionately affected > Revenue enhancement: Additional funds are expected to support improvements in public services, infrastructure and targeted assistance Businesses are at varying levels of preparedness. Those already within the scope – like food and beverage, logistics, and digital services – may experience minimal disruption. Sectors newly brought into scope, such as private healthcare, education, beauty, and construction, may face short-term cost pressures due to compliance requirements and pricing adjustments. To cushion the impact, a 12-month non-reviewable clause has been introduced to discourage immediate revision of prices post expansion. This presents an opportunity for businesses to: > Review existing contracts for tax clauses. > Engage early with customers to manage expectations. > Seek tax or legal advice on transitional arrangements. For SMEs, understanding the nuances – what is taxable, what is exempt and which rates apply – is critical. Sector-specific frequently asked questions (FAQs), along with clear transitional rules for contracts signed before July 1 2025, would be helpful in supporting compliance. At the same time, proactive outreach – through townhall sessions, industry webinars and user-friendly digital tools – can help bridge information gaps. For instance, businesses could use a self-assessment calculator on Royal Malaysian Customs Department's website to evaluate whether they qualify for SST registration based on their revenue. This is a strategic and measured reform that calls for early adaptation but offers long-term value. While short-term adjustments may pose operational challenges, businesses that respond proactively will be better positioned to benefit from a more consistent and transparent tax environment and secure sustainable growth. Stamp duty exemptions The Stamp Act 1949 governs the imposition of stamp duty on instruments such as agreements, contracts and deeds. Historically, enforcement was limited, leading many businesses to assume that only court-admissible documents required stamping. That has now changed. From Jan 1 2025, IRB implemented the Stamp Duty Audit Framework, introducing more structured audits – including retrospective reviews dating back to Jan 1 2022. Key changes include: > Expanded audit scope: Includes employment contracts, service agreements and inter-company arrangements. > Two audit types: Desk (General review) and field (comprehensive review). > Audit period: Typically three years. > Mandatory stamping: All dutiable instruments must be stamped, irrespective of whether they are used in court. This shift raised concerns among businesses unaware that routine employment and service contracts were dutiable. In response to the public concern, in its media statement issued on June 6, IRB clarified that employment contracts are dutiable under Item 4 of the First Schedule of the Stamp Act 1949, with a fixed duty of RM10 per instrument. To support taxpayers, the following relief measures were announced: > Contracts signed before Jan 1 2025: Exempt from stamping and penalties. > Contracts executed from Jan 1 2025 to Dec 31 2025: Exempt from penalties if voluntarily stamped within the year. > Contracts from Jan 1 2026 onward: Full enforcement under the new self-assessment system. This grace period allows businesses to regularise past documents without punitive consequences – an approach that aligns with IRB's commitment to administrative fairness and the principle of legitimate expectation. To further support compliance, the following are recommended: > Clear, accessible guidelines on what is dutiable, especially for employment and professional service contracts. > A voluntary disclosure programme (beyond employment contracts) with penalty waivers. > Bulk stamping mechanisms catered toward high-volume submissions, such as employment contracts. > Ongoing stakeholder engagement with industry groups to ensure reforms are practical and proportionate. This shift toward a more active stamp duty regime is overdue and necessary – but its success hinges on clarity, fairness and collaboration. Businesses must now take proactive steps to ensure compliance, including internal audits and professional advisory support. e-Invoicing implementation The revised e-Invoicing timeline, announced on June 5 this year, introduces a more phased and flexible rollout: > Businesses with revenue between RM1mil to RM5mil: Compliance by Jan 1 2026. > Revenue between RM500,000 and RM1mil: Compliance by July 1 2026. > Revenue below RM500,000: Currently exempt. This staggered implementation is a welcome relief for small businesses, but it also underscores the need to prepare early. Key focus areas include: > Assessing system readiness and integration capabilities. > Budgeting for potential ERP or API-based solutions. > Training staff on MyInvois portal usage and compliance processes. The availability of simplified options such as monthly consolidated invoices, and the relaxation of certain requirements in the early stages, are helpful. However, businesses must still maintain accurate records, prepare for interoperability with other systems, and ensure they are ready for full compliance when their phase arrives. What businesses need to do These regulatory changes represent both a challenge and an opportunity. The SST expansion and stamp duty enforcement will require tighter compliance and documentation practices. Meanwhile, e-Invoicing paves the way for digital transformation, though it requires initial investment and process restructuring. SMEs are encouraged to take proactive steps following these recent policy developments: > Conduct a comprehensive tax impact assessment covering SST, stamp duty and upcoming e-Invoicing requirements. > Engage qualified tax advisors to understand the specific implications for their industry and business model. > Initiate system upgrades and staff training early to ensure smooth implementation and avoid last-minute disruptions. To facilitate a successful transition and promote voluntary compliance, the government can consider the following: > Issue clear and timely guidance, including FAQs, through official channels such as IRB and MOF. > Offer financial incentives, such as grants or tax deductions, to help SMEs invest in the necessary digital infrastructure. These tax changes are more than just compliance – they are about future-proofing businesses and reinforcing Malaysia's position as a competitive, transparent economy. For businesses, early planning and professional engagement are key to unlocking the long-term benefits of these reforms. For policymakers, continued clarity, consultation, and targeted support – particularly for SMEs – will be vital in ensuring a smooth and inclusive transition. By working together, both businesses and policymakers alike, can co-create a tax environment that enables growth, drives innovation, and secures the nation's economic resilience for years to come. Soh Lian Seng is Head of Tax, KPMG in Malaysia. The views expressed here are the writer's own.
Focus Malaysia
13-06-2025
- Business
- Focus Malaysia
Stamping of employment contract: Is it necessary?
ON June 6, the Inland Revenue Board of Malaysia (LHDN) has clarified the stamp duty treatment of employment contracts. In its official media statement, LHDN outlines how employment contracts will be treated across three key timeframes below, helping employers and HR professionals navigate the complexities of compliance: Contracts executed before 1 January 2025 are exempt from stamp duty and no penalties for late stamping will be imposed. are exempt from stamp duty and no penalties for late stamping will be imposed. Contracts executed between 1 January 2025 and 31 December 2025 are subject to stamp duty, but no late stamping penalties apply if stamped within the year. are subject to stamp duty, but no late stamping penalties apply if stamped within the year. Contracts executed from 1 January 2026 onwardswill be fully subject to stamp duty and late stamping penalties. This announcement has raised questions about whether stamping employment contracts is necessary at all. In many jurisdictions, including Malaysia, it is not a common practice to stamp employment agreements. Admissibility, not validity Stamp duties are imposed on instruments and 'instrument' includes every written document under the Stamp Act 1949. The Act provides that instruments which are not duly stamped are inadmissible as evidence in court. The Federal Court in Malayan Banking Bhd v Agencies Service Bureau Sdn Bhd & Ors [1982] 1 MLJ 198 held that the unstamped document only affects the admissibility of the document in evidence and does not invalidate the document: 'The purpose of the Stamp Ordinance 1949 is to impose and to collect taxes on legal and commercial documents by compelling these documents to be stamped on pain of being inadmissible…. a stamp objection really relates to the safeguarding the government revenue, … unless of course the lack of stamping goes to the root or the validity of the document itself or the case is a revenue dispute.' Hence, an unstamped document is not automatically void or invalid but rather, it cannot be used as evidence in judicial proceedings until the applicable stamp duty is paid, along with any penalties for late stamping. Late stamping penalty Effective from January 1, 2025 the late stamping penalty rates have been revised as follows: RM50 or 10% of the deficient duty, whichever is higher, if stamped within 3 months after the time for stamping; RM100 or 20% of the deficient duty, whichever is higher, if stamped after 3 months from the time for stamping. From a practical perspective, the monetary impact of late stamping for standard employment contracts is minimal, which is subject to a nominal stamp duty of RM10. Practical considerations and risks of delayed stamping Given the relatively low penalties for late stamping, some employers may opt not to stamp employment agreements at the outset, particularly where no immediate dispute is anticipated or where litigation appears unlikely. Instead, stamping may be deferred until the agreement is required for legal proceedings. While this may offer short-term administrative convenience or cost savings, such an approach carries several practical and legal risks that should be carefully considered: Delays in legal proceedings : An unstamped contract cannot be admitted as evidence in court until it has been properly stamped. This can be particularly problematic in urgent applications, such as for injunctions or interim relief, where an inability to rely on the contract may hinder the timely pursuit of legal remedies. : An unstamped contract cannot be admitted as evidence in court until it has been properly stamped. This can be particularly problematic in urgent applications, such as for injunctions or interim relief, where an inability to rely on the contract may hinder the timely pursuit of legal remedies. Adverse perception in disputes : Failure to stamp an agreement may give the impression of non-compliance or an attempt to evade statutory obligations, which could affect the employer's credibility. : Failure to stamp an agreement may give the impression of non-compliance or an attempt to evade statutory obligations, which could affect the employer's credibility. Penalties for non-compliance: Executing or signing a document chargeable with duty without the requisite stamping may attract fines. With the Stamp Duty Self-Assessment System set to be implemented on January 1, 2026 LHDNis expected to step up audit and enforcement efforts to ensure compliance. Despite these considerations, delayed stamping may still be legally viable for some employers, since late stamping penalty is still relatively low and there is a minimal risk of litigation. Nonetheless, both employers and employees are strongly encouraged to stamp employment contracts promptly to ensure full compliance and to avoid procedural or administrative complications should the agreement later be required in legal proceedings. ‒ June 13, 2025 Leonard Yeoh is a senior partner and Pua Jun Wen a senior associate with the law firm, Tay & Partners. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image: Bernama
Borneo Post
29-05-2025
- Business
- Borneo Post
HASiL, DBKK strengthen tax compliance through Inactive Taxpayer Verification Programme
Dr Abu Tariq (centre), Sabin (third from left) giving their thumbs up to the programme. KOTA KINABALU (May 29): The Inland Revenue Board of Malaysia (HASiL) has reaffirmed its commitment to national tax governance through strategic collaboration with Kota Kinabalu City Hall (DBKK) via the 2025 Verification Visit Programme for Inactive Taxpayers (PCTA). Held from May 26 to 29, the integrated initiative aims to boost tax compliance, expand the tax base, and enhance inter-agency synergy to support effective national governance, HASiL said in a statement today. The programme focused on verifying the status of inactive taxpayers, particularly business licence holders operating at Anjung Kinabalu, Anjung Senja, and the SAFMA Night Market. It seeks to pave the way for the reactivation of tax files for those found to still be conducting business activities. A total of 23 HASiL officers from Kota Kinabalu, Keningau, and Labuan, along with 35 DBKK personnel, took part in the operation. Based on detailed data matching, 380 inactive taxpayers were identified as still actively running businesses in the designated areas. The programme concluded with a ceremony officiated by HASiL Chief Executive Officer Datuk Dr Abu Tariq Jamaluddin at Horizon Hotel today. Also present were Kota Kinabalu Mayor Dato' Sri Dr Haji Sabin Samitah, HASiL Deputy CEO (Special Branch) Ahmad Khairuddin Abdullah, Sabah HASiL Director Datin Dayang Halimah Awang Ahmad, and senior management from both agencies. In his speech, Dr Abu Tariq highlighted that effective tax compliance strategies go beyond enforcement, relying instead on inter-agency collaboration and structured information sharing. He credited the sharing of business licence data by DBKK as a crucial element in the operation's success. Dr Abu Tariq expressed hope that such strategic partnerships would be strengthened and expanded nationwide, serving as a model for best practices in integrated revenue management aligned with Malaysia's sustainable development goals. Echoing this sentiment, Dr Sabin emphasized that continued collaboration between Federal agencies and local authorities is vital for achieving shared objectives and ensuring the sustainability of national revenue.
