Tax Filing Due Dates and Consequences of Failing to Submit an Income Tax Return in Malaysia

Tax Filing Due Dates and Consequences of Failing to Submit an Income Tax Return in Malaysia

In Malaysia, taxpayers are classified into various classes, and each classy has its specific deadline for submitting income tax returns.

According to Section 77 and section 77A of the Income Tax Act 1967, every taxable person, shall furnish a return in the prescribed form for each year of assessment to Director General. The due date for submission varies depending on the type of taxpayer:

• For Sole Proprietors individuals who are carrying on a business, the deadline is not later than 30 June in the year following that year of assessment. For instance for Basis Year / Calendar Year 2022, due date to submit tax return (Form B / M)** for Year of Assessment 2022 will be on 30 June 2023.
• For all other individuals (for instance, employment), the deadline is not later than 30 April in the year following the year of assessment. For instance for Basis Year / Calendar Year 2022, due date to submit tax return (Form BE / M)** for Year of Assessment 2022 will be on 30 April 2023.
• For Partnerships, the deadline is not later than 30 June in the year following that year of assessment. For instance for Basis Year / Calendar Year 2022, due date to submit tax return (Form P)** for Year of Assessment 2022 will be on 30 June 2023.
• For Limited Liability Partnership, the deadline is not later than 7 months from the basis period ends. Basis Period herein can refer as Financial Year End, though it could vary according to different scenario, such as First Year in Operation. For instance for Basis Period / Financial Year Ended 31 December 2022, due date to submit tax return (Form PT) for Year of Assessment 2022 will be on 31 July 2023.
• For Private Companies (Sdn Bhd), the deadline is the same as the Limited Liability Partnership, which is not later than 7 months from the basis period ends. For instance for Basis Period / Financial Year Ended 31 December 2022, due date to submit tax return (Form C) for Year of Assessment 2022 will be on 31 July 2023.

** Form BE is for Tax Resident and Form M is for Non Tax Resident. 

Based on Inland Revenue Board’s practice, extension / grace period for e-filing will be granted to the classes of taxpayers above:-

• Individuals carrying on a business, 15 days grace period is granted. The deadline extended to 15 July 2023.
• Individuals (employment), 15 days grace period is granted to 15 May 2023.
• Limited Liability Partnerships and Private Companies, 1 month grace period is granted. For Basis Period / Financial Year Ended 31 December 2022, the e-filing deadline extended to 31 August 2023.

Do take note that, if there is late filing, the penalties will be calculated based on statutory due date, not extended due date.

If a taxpayer fails to submit their income tax return in accordance with Section 77 or Section 77(A) of the Income Tax Act 1967 without a reasonable excuse, they shall aware that Section 112(1) of the same Act provides for the consequences of failing to submit an income tax return in Malaysia and such penalties will be imposed upon conviction.

What are the consequences if I fail to submit a tax return?
 i. First Offence [Section 112(1)]: If a taxpayer fails to submit their tax return for the first time, they may be subject to:
a) Fine ranging from RM2,000 to RM20,000; or
b) Imprisonment for less than 6 months, or
c) Both.

ii. Repeat Offence [Section 112(1A)]: If a taxpayer fails to submit their tax return for two or more Years of Assessment, they may be subject to:
a) Fine ranging from RM1,000 to RM20,000; or
b) Imprisonment for less than 6 months; or
c) Both; or
d) Special penalty equal to treble (3x) the amount of tax charged according to the best judgement of the Director General of Inland Revenue (deemed assessment).

Tax consulting is the core service of ANC Group. Our tax professionals provide clients with comprehensive tax support and guidance. We offer tax consulting and compliance services for expatriates, entrepreneurs, and listed and non-listed companies.

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