[TAX UPDATE] MITRS Malaysia 2025 – What SME Bosses Must Know About the Updated Filing Programme

[TAX UPDATE] MITRS Malaysia 2025 – What SME Bosses Must Know About the Updated Filing Programme

Running a business in Malaysia is already full of challenges. The last thing any SME boss wants is a surprise from the tax authorities. This year, the Inland Revenue Board of Malaysia (IRB) has introduced updates to the Malaysian Income Tax Reporting System (MITRS).

For those hearing about it for the first time, MITRS is a system that requires companies and individuals to submit key financial documents to IRB. These include audited and unaudited financial statements, directors’ reports, profit and loss accounts, and other specified documents.

The goal is to strengthen tax compliance, improve transparency, and ensure that every taxpayer files consistently.

The impact is big. For tax agents, it means tighter deadlines and the need to coordinate closely with clients. For taxpayers, especially SME bosses, it means making sure your accounts are ready on time, or risk penalties.

Why MITRS Matters for SME Businesses

Many SME owners focus on daily operations and leave tax matters to their accountants or tax agents. While that makes sense, MITRS is not something you can ignore. The IRB has set strict filing deadlines under Section 82B of the Income Tax Act 1967.

For example:

  • Under MITRS, your specified documents must be submitted 30 days after that due date. This means the MITRS deadline falls on 30 January 2026.

  • If you take advantage of the one-month grace period, the deadline moves to 2 March 2026.

  • If IRB gives you an extension, the deadline is 30 March 2026.

The message is clear: do not wait until the last minute. SME bosses must plan early with their finance team and tax agent.

What Documents Are Required Under MITRS

The IRB has published FAQs to guide taxpayers. These are the main categories of documents that SMEs may need to prepare:

  1. Audited financial statements – including directors’ reports, balance sheet, and income statement.

  2. Unaudited financial statements – for cases where audit is not required.

  3. Statements of income and expenditure – usually for partnerships or non-audit entities.

  4. Winding-up documents – for companies closing down operations.

By having clear guidance, there is less confusion about what IRB expects. But it also means there is no excuse for late or incomplete filing.
The specified documents under Section 82B must be submitted electronically via the MITRS platform, which will be accessible through the MyTax Portal starting from 1 April 2025.

The Impact on SME Bosses

Here is why SME owners need to pay attention:

  • Cash flow planning – Your financial closing and audit must now be timed properly. If not, your tax submission may be delayed, causing unnecessary penalties.

  • Closer coordination with tax agents – SME bosses cannot just “send everything last minute”. Tax agents are responsible for filing but need enough time to prepare.

  • Increased compliance risk – IRB is moving towards stricter enforcement. Missing MITRS deadlines will likely trigger penalties or audits.

  • Better transparency – On the positive side, MITRS also helps ensure your company’s financial position is accurately reflected, which may help when applying for loans or grants.

What SME Bosses Should Do Now

To avoid stress later, here are practical steps SME owners can take today:

  1. Know your deadlines – Mark your company’s financial year-end and calculate the MITRS submission date together with your tax agent.

  2. Get accounts ready early – Do not wait until the tax filing season. Prepare accounts within a few months after year-end.

  3. Work closely with your auditor – For companies requiring audit, engage your auditor early. Audit delays are one of the biggest causes of late filing.

  4. Keep communication open – Speak with your tax agent regularly. Ask what documents are required and set internal deadlines.

  5. Use technology – Consider digital accounting tools to speed up closing and document preparation.

The Bigger Picture … Why IRB Introduced MITRS

The introduction of MITRS is part of Malaysia’s digital transformation agenda. The government wants to build a tax system that is more efficient, transparent, and competitive globally. By having financial documents submitted on time and in a standardised way, IRB can reduce disputes and speed up reviews.

For SMEs, this may feel like extra work in the short term. But in the long run, it creates a more level playing field where every business files on time, reducing unfair competition from those who previously cut corners.

Conclusion

The updated filing programme and FAQs on MITRS are a wake-up call for all SMEs in Malaysia. As an SME boss, your role is to make sure your finance team and tax agent have the support and information they need to meet deadlines.

MITRS is not just another formality. It is a key compliance requirement that directly affects your business reputation and your peace of mind. By acting early and planning carefully, you can stay ahead of IRB requirements, avoid penalties, and run your business with confidence.

At KTP (www.ktp.com.my), we help SMEs navigate these changes by offering practical tax advice, filing support, and compliance planning. Speak to us today if you want to ensure your company is fully ready for MITRS Malaysia 2025.

Past Blog on MITRS

Date: 5 June 2025

Title: [TAX UPDATE] Are You Ready for the Next Tax Surprise? – MITRS 2025

Link: https://www.ktp.com.my/blog/malaysian-income-tax-reporting-system-mitrs/05june2025

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