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

“Boss, this one just upload PDF lah… Why so serious?”
That’s what most SME clients think.

But for tax agents like us — MITRS is no small matter.

01What Is MITRS?

MITRS stands for Malaysian Income Tax Reporting System — a new digital platform (no more email here and there) by LHDN.
Starting Year Assessment 2025 (ie audited financial statement 31/1/2025), it becomes mandatory for all companies and LLPs in Malaysia.

It may sound like a system upgrade. But in reality — it comes with extra work, tight deadlines, and potential penalties.

02What Must Be Submitted?

Within 30 days after filing your tax return, you must upload:

• Audited or unaudited financial statements
• Tax computation
• Capital allowance schedule
• Incentive computation (if applicable)

All documents must be in clear, readable PDF, with a total size limit of 20MB.

03What If You’re Selected for Audit?

If your company is selected for a tax audit (e.g. CP700 or CP800 notice), LHDN will request additional documents such as:

• General ledger, journals, invoices, receipts
• Debtor and creditor listings

All documents must now be submitted through MITRS — not by email.

04No Extensions. No Excuses.

Failure to submit on time may result in:

• A fine between RM200 and RM20,000
• Imprisonment up to 6 months, or
• Both

This is not just a new platform. It signals a new level of compliance.

05Why Is This Happening Now?

MITRS replaces traditional email submission for three key reasons:

1. Standardised format across all taxpayers
2. Faster audit readiness
3. Better data tracking for enforcement and benchmarking
4. Tighter control under the self-assessment regime

As LHDN puts it:

“We trust you to self-declare… but we want to see your working papers — fast.”

06What This Means for You (Our SME Clients)

Let’s be transparent:

• You’ll need to prepare tax documents earlier
• There may be additional cost for compilation and submission
• You’ll need to ensure your tax agent submits on time
• You must plan both time and budget for MITRS

07What This Means for Us (Your Tax Agent)

At KTP, we are getting ready:

• We’re training our staff on MITRS
• We’re preparing an internal SOP so no client is left behind
• We’re building a transparent fee structure with proper checks and balances

We understand the pressure — and we’re taking proactive steps to support you.

08What Should You Do Now?

• Speak to us about your MITRS readiness
• Review your account closing schedule
• Ask us for the MITRS SOP and submission calendar
• Clarify all fee-related matters in advance

09Final Note:

MITRS is not just a simple file upload.
It’s a major compliance shift — with serious consequences for delay.

Let’s prepare now — and avoid costly surprises later.

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• Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
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KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

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