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Self-Billed eInovice - the Why, the How and the Who

  Self-billed e-invoices, particularly under Malaysian tax regulations, can be tricky if not handled carefully.  Here's a clear, detailed breakdown for your bookkeeper and accounting technician to understand the concept, the relevant rules, and practical actions to avoid any potential penalties: What is a Self-Billed E-Invoice? A self-billed e-invoice is issued by the buyer , instead of the supplier. In a normal transaction, typically, suppliers issue the invoice. But in a self-billing arrangement, it is the customer (recipient or buyer) who prepares and sends the invoice on behalf of the supplier. In Malaysia, self-bill documents are allowed under certain conditions and especially important for SST (Sales and Service Tax) registrants. With the mandatory implementation of e-invoicing (via MyInvois by LHDN) progressively effective from 2024 onwards, it's vital to ensure correct practice and adherence. Why Self-Billing? Usually chosen when: The buy...
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Digital Signatures in Malaysia: What Every SME Owner Should Know

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In today's rapidly digitalizing business landscape, Malaysian SME owners are increasingly adopting technological solutions to streamline operations.  Among these technologies, digital signatures stand out as a crucial tool for business efficiency. Yet, despite their growing importance, digital signatures remain widely misunderstood by many business owners. What Is a Digital Signature? A digital signature is more than just an electronic version of your handwritten signature. It's a sophisticated, encrypted form of authentication that ensures the integrity, authenticity, and non-repudiation of digital documents and transactions. Unlike electronic signatures, which can be as simple as a typed name or scanned signature, digital signatures use cryptographic technology to provide higher security levels. The Legal Standing in Malaysia Many SME owners mistakenly assume digital signatures lack legal recognition in Malaysia. In fact, digital signatures have been legally recognized since ...
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Digital Transformation by SSM for SME - MBRS 2.0

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  MBRS 2.0: What Malaysian SME Owners Need to Know The Malaysian Business Reporting System (MBRS) has undergone significant enhancements with the launch of MBRS 2.0 in September 2024. Built on the globally recognized eXtensible Business Reporting Language (XBRL), MBRS enables digital submission of financial reports, annual returns (AR), and exemption applications (EA) to Suruhanjaya Syarikat Malaysia (SSM). What's New in MBRS 2.0? MBRS 2.0 introduces critical upgrades beneficial for SME business owners. Key improvements include: Increased Submission Types : Submissions for financial statements (FS) and key financial indicators (KFI) now expanded from 9 to 15 categories, catering to a wider array of reporting needs. Bilingual Support : Users can now choose between English and Bahasa Malaysia, easing usability and broader adoption among SMEs. Enhanced Validation and Dynamic Dropdowns : Automatic validation reduces errors, and dynamic dropdowns simplif...
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Location: Malaysia
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Director of a Company - Duties and Responsibilities (as well as Liability)

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  Director Responsibility and Liability in Malaysia: Legal Framework and Case Law Implications In Malaysia's corporate landscape, directors bear significant responsibilities and face various liabilities under the Companies Act 2016 (CA 2016), which replaced the Companies Act 1965. Understanding these legal obligations is crucial for directors to effectively discharge their duties while avoiding personal liability. Fiduciary Duties of Directors Directors serve as trustees and agents of the company, managing its affairs on behalf of shareholders. Section 213(1) of the CA 2016 codifies the fundamental duty that directors must exercise their powers "for a proper purpose and in good faith in the best interest of the company." This fiduciary relationship was aptly described in Great Eastern Ry v Turner (1872) , where Lord Selbourne stated that directors are "trustees of the company's money and property; agents in the transactions which they enter into on behalf of the...
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Can we DIY e-Invoicing - no accounting software

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 Can we DIY e-Invoicing - no accounting software ? LHDN said can, and they are very kind, make it possible by allowing taxpayer to issue e-Invoice using MyInvois portal under MyTax portal. First, login to MyTax. Then, go to MyInvois Then Choose taxpayer profile In the "Tax payer Porfile", you may download QR code for e-Invoicing (share it to your supplier) Click HERE for e-Invoice template (Microsoft Excel ) to be uploaded to MyInvois There are two version: Extended vs. Standard Standard Click HERE for FAQs prepared by MyTax.
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Location: Malaysia
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Understanding Audit Exemption for SMEs in Malaysia: Why, What, and FAQs

  Audit exemption is becoming a widely discussed topic among SMEs in Malaysia, especially with the latest updates by the Companies Commission of Malaysia (SSM) through Practice Directive (PD) 10/2024 , effective from 1 January 2025.  SME owners need to clearly understand what audit exemption entails, the rationale behind it, and whether opting for exemption genuinely translates into tangible compliance cost savings. Why Audit Exemption—The Rationale The audit exemption framework in Malaysia was originally introduced on 4 August 2017 and recently expanded under the Practice Directive 10/2024 . Its main purpose is clear: To reduce the financial and administrative burdens of compliance, especially for micro and small private entities. To streamline administrative processes, improve efficiency, and enhance Malaysia’s competitive advantage as a business-friendly environment. ...
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Location: Malaysia
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Remove a director - Be careful.

  The Director Removal Process in Malaysia: Legal Implications and Risks In today's dynamic business environment, the removal of directors is sometimes necessary for corporate governance and strategic realignment. However, both companies and shareholders must navigate this process carefully to avoid legal pitfalls and potential liabilities under the Companies Act 2016. Legal Framework for Director Removal The Companies Act 2016 establishes distinct procedures for director removal based on company type. Unlike its predecessor, the Act provides clearer guidelines while still maintaining protection for corporate interests and individual rights. Private Companies For private companies, the removal process depends primarily on the company's constitution. According to Section 206(1), if the constitution is silent on removal procedures, a director may be removed by ordinary resolution (simple majority vote). The Act notably does not speci...
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