Felix Sean Chan

Audit, Tax and Assurance

[Felix Sean Chan @0felixchan]

Paying Mum's dentist or Grandpa's check-up? 👵

s46(1)(c): up to RM8,000 for parents' or grandparents' medical, dental, special needs or carer costs. Full medical exam (vaccines too) max RM1,000.

Needs: resident parents, care given in Malaysia, receipts + medical/dental cert.

[Felix Sean Chan @0felixchan]

Filed Form Q, so LHDN has to wait? Nope ⚖️

s103(1): tax is payable whether or not you appeal. If LHDN sues for it, s106(3) bars pleas that the tax is excessive, wrongly assessed or under appeal.

Fight the number at the SCIT, not in the debt suit. Check yours.

[Felix Sean Chan @0felixchan]

Calling yourself a "tax consultant" doesn't let you act for clients under the ITA 🧐

s153(1): only an approved tax agent (s153(3)) can. Approval is from MOF via MyCukai, runs 3 years, renew within 4 months before expiry. Acting without it is an offence (s120(1)(d)).

[Felix Sean Chan @0felixchan]

Scanned every receipt and binned the paper? Wait 🧾

s82A: keep tax documents 7 years. File late and the 7 years run from the year you actually file (s82A(2)).

Started on paper? s82A(4)(b): keep the originals even after scanning. Born-digital can stay digital. Not tax advice.

[Felix Sean Chan @0felixchan]

Customer dinner: 50% deductible. Staff dinner: 100%. Same food, different rule 🍽️

s39(1)(l) halves entertainment, but its proviso spares staff-only events, logo gifts, product samples and entertainment wholly tied to sales.

Must pass s33(1) first. Depends on your facts.

[Felix Sean Chan @0felixchan]

Bought a home CCTV or food waste grinder this year? New for YA2026 📹

s46(1)(v) now covers both, but it's one shared RM2,500 pot with EV charging and compost machines (s46(1A)), not an extra RM2,500.

Grinder or CCTV: claim once, in YA2026 or 2027. Keep receipts. Check yours.

[Felix Sean Chan @0felixchan]

Moved house or office? Tell LHDN within 3 months 🏠

s89: update via MyTax e-Kemaskini or CP600B. Ignoring it is an offence under s120(1)(d).

Bigger risk: notices posted to your last known address are deemed served (s145), so a 30-day Form Q appeal clock can run out unseen.

[Felix Sean Chan @0felixchan]

Public vs advance ruling? Panel favourite 📘

s138A public ruling: LHDN's published view. Follow it and the DG must apply the law to you that way.

s138B advance ruling: you apply for your own planned deal. Binds that deal and period only. Facts differ materially? It falls away.

[Felix Sean Chan @0felixchan]

CP204 estimate too low? There's a 30% buffer, then a penalty 🧮

s107C(10): if actual tax beats your last CP204/CP204A estimate by more than 30% of actual tax, 10% is added on the excess.

Actual RM100k, estimate RM60k: (40k − 30k) × 10% = RM1k. Revise up in month 6, 9 or 11.

[Felix Sean Chan @0felixchan]

Tax refund running late? LHDN may owe you a little extra 💸

s111D: if it's paid more than 90 days after the return due date (120 if you filed on paper), you get 2% a year on the refund for the extra days.

Not if you filed late, made a wrong claim or appealed under s99.

[Felix Sean Chan @0felixchan]

Signing a 2-year lease? You now self-assess the stamp duty (STSDS since 1 Jan 2026), and the old RM2,400 exemption is gone 🏠

Item 49(a), per RM250 of annual rent: RM1 (≤1 yr), RM3 (1–3), RM5 (3–5), RM7 (>5). RM3k/mth, 2 yrs = RM432.

Tenant pays on the original. Check yours.

[Felix Sean Chan @0felixchan]

Machine bought in Dec but still in its crate on 31 Dec? 📦

Annual allowance needs you to own it AND have it in use for the business at the end of the basis period (Sch 3 para 15). Not in use yet? No AA that year.

AA rates: 20% heavy machinery/vehicles, 14% plant, 10% other.

[Felix Sean Chan @0felixchan]

Director with 20%+ of the shares (with associates)? The company's unpaid tax can land on you personally 👀

s75A: jointly and severally liable, PCB debts too. Resigning or selling down later doesn't clear it if you qualified when the tax fell due (PR 2/2019).

Not tax advice.

[Felix Sean Chan @0felixchan]

Incorporated overseas, but the board meets in KL? 🏢

s8(1)(b): a company is tax resident if its management and control is exercised in Malaysia at any time in the basis year. LHDN (PR 9/2019): even one board meeting here making real decisions can do it. Minutes matter.

[Felix Sean Chan @0felixchan]

Buying a dormant Sdn Bhd for its tax losses? Think again 🧾

If 50% or more of the shareholding changes, s44(5A) wipes out the unabsorbed losses (and unabsorbed CA, Sch 3 para 75A).

MOF policy since YA2006 spares active companies. Dormant ones don't get that pass.

[Felix Sean Chan @0felixchan]

Legal on paper but just there to save tax? s140 lets LHDN look through it 🧐

If the DG has reason to believe a deal shifts or avoids tax, he can disregard or vary it and reassess, with particulars (s140(5)). Related-party or family deals not at arm's length count too (s140(6)).

[Felix Sean Chan @0felixchan]

2025 bonus only paid in March 2026? It's taxed in YA2026, the year you get it (s25(1), since YA2016). Same for salary arrears and director's fees.

Leaving Malaysia for good? s25(6) pulls next year's pay into your leaving year, unless you ask LHDN in writing. Check yours.

[Felix Sean Chan @0felixchan]

Kids 18+ still studying? Child relief isn't one flat figure 🎓

A-Level, matriculation or prep course: RM2,000. Diploma and up in Malaysia, or a degree overseas: RM8,000, if the course and institution are govt-approved (s48(3)).

Divorced parents both paying? 50% each (s48(4)).

[Felix Sean Chan @0felixchan]

Chargeable income RM35k or less? There's a RM400 rebate straight off your tax (s6A(2)). Claiming spouse relief too? Another RM400.

Catch: rebates (zakat included) only take your tax down to zero. Any excess isn't refunded or carried forward (s6A(4)).

Depends on your facts.

[Felix Sean Chan @0felixchan]

Paid a foreign supplier? The e-invoice is on you, not them 🌏

If you're in scope, you issue a self-billed e-invoice (s82C(6)).

Services: by end of the month after you pay or get their bill, whichever's first. Goods: end of the 2nd month after customs clearance.

Check yours.