Malaysia Tax: Penalty For the Late Payment of Tax

Penalty of Late Payment of Tax

Penalty will be charged to those who make late payment of tax. Besides that, penalties will also be imposed on those who submitted deficient net tax payable, SST return is submitted without payment or lesser amount, or any failure to register SST.

All the payment of sales tax in Malaysia can be made through the MySST system (Financial Process Exchange (FPX), use cheque or bank draft to make payment. Any payment via cash is not accepted. If you wish to make payment via online, only full payment is accepted. Partial payment can only be made through cheques or bank drafts.

The important information to indicate at the back of your cheque includes; your company name, SST number, taxable period and phone number. Payments via cheque/bank drafts have to indicate the payment made payable to ‘Ketua Pengarah Kastam Malaysia’ and mailed to the following address;

Ketua Pengarah Kastam Malaysia

Pusat Pemprosesan Kastam,

Kompleks Kastam Kelana Jaya,

No.22, Jalan SS6/3 Kelana Jaya,

47301 Petaling Jaya, Selangor.

For any Corporate Account payment (B2B), the minimum payment is RM2 to maximum of RM 100 million. On the other hand for Individual Account, the minimum payment is RM 1 to maximum of RM 100,000. Do note that you’ll have to pay at Customs Processing Center by cheque if your total paid amount exceeded the maximum limit.

Take note of the date when you should file for your sales tax as a penalty will be imposed on you for late payment. Check out on the table shown below on the rate of penalty charged for different ranges of late payments.

Penalties will also be imposed if there are any deficiency on the net tax payable, zero Sales and Service Tax is made or any failure to register SST.