What is the Malaysian Income Tax Reporting System (MITRS)? A Complete Guide for 2025

Malaysian Income Tax Reporting system (MITRS) is an online system that has been implemented by Lembaga Hasil Dalam Negeri Malaysia (LHDN) to improve compliance efficiency and transparency in tax reporting. Beginning with the Year of Assessment (YA) 2025, MITRS is compulsory to some taxpayers, especially those that are companies or Limited Liability Partnerships (LLPs).

This guide describes what the Malaysian Income Tax Reporting System is, who is to use it, the documents which are needed, the deadlines and what the penalty against non-compliance is.

What is the Malaysian Income Tax Reporting System (MITRS)?

MITRS is the online system which enables taxpayers to provide named documents and information connected to taxation. LHDN uses the documents to determine chargeable income and tax that should be paid by taxpayers.

It has two main modules:

1. Section 82B Document Module - To be submitted in 30 days of the payment date of income tax return (Borang Nyata).
2. Section 80/81 Audit Document Module- To present extra audit documents as requested by LHDN.

Why MITRS is Implemented

ACP 1967, Section 82B (A), sub-section (A) (1) states that under Section 77 or 77A, a taxpayer who files a Borang Nyata must provide other documents within 50 days after the date of filing.

This new need will begin with:

• Companies
• Limited Liability Partnerships (LLP).

These categories MITRS modules will become live on 1 April 2025.

Specified Documents under sub section 82B ACP 1967.

The following documents are required to be submitted by taxpayers through MITRS in order to calculate chargeable income and taxable amount.

1. Financial statements that are audited or not.
   1. Accounting reports as per the incorporation Act applicable.
   2. In the case of companies, the qualification of unaudited statements is listed in PD 10/2024 SSM.
   3. Liquidators have to present the Liquidators Account.
2. Income tax computation
3. Full capital allowance schedule under schedule 3 ACP 1967.
4. Computation of incentive (where applicable)

Format: All documents should be readable in PDF with a total file size not more than 20MB and Malay or English.

MITRS Submission Flow

The submission process under MITRS entails the following.

The documents required are:

• Audited/unaudited financial statements.
• Income tax computation
• capital allowance schedule (where applicable)
• Computation of incentives (where appropriate)

Amendment of Submitted Documents.

MITRS gives taxpayers the opportunity to make adjustments on documents that have been filed under Section 82B:

• Amendments during the filing period → are permitted by the system, and punishments are not to be done.
• Amendments subsequent to the submission period → should give reasons and can be compounded or prosecuted under Section 120(1)(d).

All the amendments necessitate re-posting of all documents, not only the amended one.

Deadline and Extension of Time.

• MITRS submission gets due on 30 days of the BN due date.
• This is already in consideration of the grace period and the extension of time (EOT) given in regard to BN submission.
• No further extension will be granted for MITRS documents

Additional Audit Documents (Section 80/81 ACP 1967)

MITRS also covers additional audit documents requested by LHDN through official notices (CP700/CP800).

MITRS Milestones

According to the official implementation schedule:

The Impact of MITRS on Businesses.

Due to the implementation of the Malaysian Income Tax Reporting System, companies and LLPs are required to:

• Make the financial statements and tax calculations in advance.
• Make sure that papers are converted to fine PDFs within 20MB.
• Get directors, tax agents, and finance teams to be familiar with the portal of MITRS.
• Timely action on any audit document request by Section 80/81.

The compliance risks will be minimized through an early preparation and make the adoption of the system much easier as soon as it is in operation.

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