GSK & Associates
Late filing of Income Tax Returns (ITRF) - New Penalty Rates
Updated: Apr 11, 2022
The Malaysian Inland Revenue Board, LHDN has issued a New Operational Guidelines on penalties under subsection 112 (3) of the Income Tax Act, 1967,
The following information is based on the New Operational Guidelines, GPHDN 5/2019, which is effective from 1 October 2019 which also revokes the earlier Operational Guidelines GPHDN 1/2015 dated 5 March 2015.
If the ITRF is not submitted within the due date, the penalty applicable BEFORE the notice (J Form) of estimated assessment (taksiran anggaran) issued under subsection 90 (3) is for delay in submission of ITRF (lewat mengemukakan borang nyata) and the corresponding rates are as follows (refer point 3 of the GPHDN 5/2019).
The duration of the delay in submission will be calculated to commence from the last date for submission (7 months from the financial year end), if the ITRF is not submitted within any allowed grace period.
The penalty after the Form J is issued under subsection 90 (3) is for failure to submit ITRF (gagal mengemukakan borang nyata) and the rate is fixed at 45% (refer point 4 of the GPHDN 5/2019).
The Operational Guidelines 5/2019 is available on LHDN's website at the following link;
This article is based on the Operational Guidelines No.5/2019, issued on 16 October 2019 by LHDN. The article is intended to provide a general guide to the subject matter and should not be regarded as a basis for ascertaining the liability to tax in specific circumstances. No responsibility for loss to any person acting or refraining from acting as a result of any material in this publication can be accepted by GSK & Associates. Readers should not act on the basis of this publication without seeking professional advice.
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