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Tax Penalty for Company

Updated: Feb 27

In Malaysia, companies may face penalties imposed by Lembaga Hasil Dalam Negeri (LHDN) for late submission or non-payment of taxes, inaccurate reporting, failure to maintain proper records and other non-compliance issues. It's important to stay on top of your tax responsibilities to avoid those penalties and ensure smooth operations for your business.

 

The penalties are listed as below:

Late payment of income tax

10% of tax payable

 

Late payment of tax instalment

10% of outstanding tax instalment amount

 

Underestimation of tax estimate by 30% of actual tax payable

10% of difference in actual tax payable and estimated tax

 

Failure to furnish income tax return

Fine not exceeding RM20,000 or imprisonment or both

 

Failure to furnish income tax return for 2 YAs or more

Fine not exceeding RM20,000 or imprisonment or both; and 300% of tax liability

 

Make an incorrect tax return by omitting or understating any income or providing wrong information

Fine not exceeding RM10,000 and 200% of tax undercharged

 

 

Tax evasion wilfully and intentionally or assisting any other person to evade tax

Fine not exceeding RM20,000 or imprisonment or both and 300% of tax undercharged

 

Attempt to leave the country without paying tax

Fine not exceeding RM20,000 or imprisonment or both

 

Failure to comply with IRB request for information

Fine not exceeding RM20,000 or imprisonment or both

 



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