Malaysia 2024 Electronic Filing Deadline Penalties for Late Filing Exceeded the Deadline

Every March, it is time for Malaysian citizens to fulfill their tax obligations.

• Maybe many people still don't know what taxation is?
• Especially those young people who are new to social work, they mistakenly think that taxation is something that only those who open a company and do business need to do.
• Therefore, many people become "tax evaders" because they do not understand!

What is a tax return?

In fact, as long as you are an office worker, you have to file a tax return.

Another point to understand is that filing a tax return does not mean paying tax.

Report annual income to the tax office, and only need to pay tax if it exceeds the tax threshold

Tax returns are effectively Malaysian citizens reporting their annual income to the Malaysian Inland Revenue Department, including:

• Salary, commission, property rent, year-end bonus, etc.
• Excludes interest income on bank deposits.
• Filing your taxes doesn't necessarily mean you have to pay taxes.
• If your annual income exceeds the threshold set by the government, you must pay personal income tax.
• Whether working or doing business, for the sake of safety, the most important thing that cannot be ignored is "tax declaration" and "tax payment".
• Income tax filing for 2024 will be required from March 3, 1.
• You will be fined for filing taxes late!

2024 Income Tax Filing Deadline

Let's first understand the deadline for filing all documents for income tax in 2024.

Here are the deadlines for filing income tax returns:

1. Form EA – income document provided by the company to employees (no need to report to the relevant authorities) – before February 2
2. Form CP58 – Income documents provided by the company to agents, distributors and distributors (not required to report to the relevant authorities) – before March 3
3. Form E – Company submits employee annual salary information – before March 3
4. Form BE – Personal wage income, no business – before April 4
5. Form B – personal business, clubs, etc. – before June 6
6. Form P – Partnerships – by June 6
7. Form C – Pte Ltd private limited company – within 7 months after the closing date
8. Form PT – Limited Partnership – within 7 months of the closing date

Penalties for tax evasion/late tax return/incorrect information

Office workers can start filing tax returns from today.

• If the tax is handwritten, it will be due April 4.

You face penalties if you file late, evade taxes, or provide incorrect information ▼

• If you don't file your taxes, you will face fines
• "Filing taxes" and "paying taxes" are two different things.
• Under Malaysia's Income Tax Act 1967, taxpayers who fail to file their tax returns can be fined between RM200 and RM20000, or jailed for not more than six months, or both.

How much is the late tax penalty?

The following are penalties for late filing: 

1. Within 12 months – 20%
2. Within 12 to 24 months – 25%
3. Within 24 to 36 months – 30%
4. Over 36 months – 35%

According to Act 112(3), the Inland Revenue Department has the power to impose a triple penalty on taxpayers who have delayed filing their tax returns and have not paid their taxes.

• Under Section 1967(112) of the Income Tax Act 3, if a taxpayer delays filing tax returns, the government can fine up to 3 times the tax without prosecution!
• Section 113(1) of the same Act states that taxpayers who provide incorrect tax information can be fined up to RM20,000.At the same time, the tax bureau can charge taxpayers up to 2 times the tax!
• Violating Section 114 (intentional tax evasion), if convicted, will be fined between RM1,000 and RM20,000, or imprisoned for not more than 3 years, or both, and must pay 3 times the tax fine.

Don't underestimate tax filing. Whether you are a migrant worker, start a company and start a business to make money, or rush to file your tax return, don't wait until the last minute to file your tax return.