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:
** 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:-
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
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.
Our tax consulting services include business tax, transaction tax, personal tax, and corporate income tax. We don’t just guide you in interpreting and applying complicated taxation rules, but to explore new opportunities and business trends.
We keep you abreast with Malaysia tax updates and any changes in the local regulations.
We work closely with industry specialists, authorities, and associated professionals within ANC Group to provide the best-in-class integrated tax planning solutions. ANC specialists coordinate the accounting and taxation services to bring your business to success.