In Malaysia, it’s crucial for businesses to stick to deadlines set by government agencies like the Inland Revenue Board (IRB) and the Companies Commission of Malaysia (SSM).

Failing to meet these deadlines can lead to problems, including financial penalties and legal issues. So, it’s important for businesses to understand the seriousness of missing these deadlines and the consequences they might face.

Late filing penalties for both the Inland Revenue Board (IRB) and the Companies Commission of Malaysia (SSM) can be quite significant.

☢️For IRB:

If you’re late in submitting your tax return form for one year of assessment (YA), you could face a penalty ranging from RM200 to RM20,000, or imprisonment for up to 6 months, or both.

For multiple years of assessment, the penalty could be between RM1,000 to RM20,000 plus triple the tax payable with the Director General’s best judgment, or imprisonment for up to 6 months, or both.

Additionally, IRB might impose a penalty of triple the tax payable for the YA.

However, IRB often follows operational guidelines which could mean penalties of 15%, 30%, or 45% of the tax payable depending on how late the filing is.

☢️ For SSM:

There are penalties for various late filings related to Annual Return (AR), preparation, circulation, and lodgement of financial statements.

Penalties range from fines not exceeding RM50,000 to fines up to RM500,000 or imprisonment up to 1 year, or both.
Continuing offenses may result in additional fines.

SSM also imposes late lodgment penalties ranging from RM50 to RM200 depending on the delay period.

Read the full content of our hashtag#KTP blog on “What Directors Should Do After Incorporation?” as authored by Syazwan Ishak, our secretarial associate from THK, in his personal LinkedIn post. https://lnkd.in/g4A7iFGQ