top of page

Tax Penalty For Tax Return

Tax Return (and Payment, if applicable)


For a Sdn Bhd with financial year ended January 31, 2023, the Tax return (Form C) will be due on 31 August 2023 (and grace period to file the tax return by September 30, 2023)

However, for payment of tax, due date will be on 31 August 2023 (Section 103(12) ITA1967)

(last day of seventh month from accounting year end)

What if tax return Form C not submitted on time?

Section 112(1) ITA1967 - Fine is RM200.00 to RM20,000.00 / Imprisonment for a term not exceeding 6 months / Both

Once Form C not submitted on time, Section 103 also kicks in on non-compliance to Payment of Tax

10% on 'unpaid' Tax after the due date. (in this example, due date is 31 August 2023)

Why? Because how can the 'amount due' be ascertained if Form C not submitted?

Unless a company pay the tax in advance without the Form C, which is highly unlikely, except for tax installments made under S107(9) or known as CP204 payment


Therefore, the 10% will only be imposed on the 'unpaid' tax due only.

Refer Section 103(3) for details.


Non-Payment of Tax due -- Travel restriction

Other than the 10% additional tax under S103 for late payment, Travel Restriction may be imposed on company director under Section 104 ITA1967 for failure to pay tax due (under Section 103, as well as Section 107 (tax estimation and installment)

Finance Act 2019

Pursuant to the Finance Act 2019:

  • Section 77B(4) of the ITA was amended to remove the imposition of the further penalty of 5% on the increased sum (i.e. amount understated plus a 10% penalty). The 10% penalty is the final increase.

  • Section 103(1A) of the ITA was amended to remove the imposition of the further penalty of 5% on the balance of unpaid taxes, where any balance remains unpaid after 60 days from the stipulated due date.



29 views0 comments

Recent Posts

See All

Your C.F.O.

Re-Branding ourselves as Your Compliance Friendly Officer. Of course, we professionally trained chartered accountant, had exposures in corporate world, we can be your Chief Financial Officer as well.

CGT - Capital Gain Tax

New tax from 2024 Background: Announced in Budget 2024 Timeline Effective 1st March 2024 Who is Chargeable Person (i.e. to pay CGT)? Company (including Sdn. Bhd. and Limited Liability Partnership) CGT

ChatGPT can be company secretary?

Below is reply received when we ask "In Malaysia, procedure to redeem preference shares", how accurate is it? To redeem preference shares in Malaysia, the procedure typically involves the following st

bottom of page