Income Tax Act 1967 · Section 112
What happens if you file taxes late in Malaysia?
Two things, and they stack. First, a flat fine for filing late. Second — and this is the one that hurts — if you don't file at all, LHDN can estimate your income themselves and add a penalty of up to 300% of the tax owed. Here's the detail.
1. The late filing fine
Under Section 112 of the Income Tax Act 1967, filing your return late carries a fine of RM 200 to RM 20,000, up to 6 months' jail, or both. In practice LHDN usually applies a percentage loading on the tax payable for a first, modest delay — but the statutory ceiling is what you're legally exposed to.
2. The 300% best-judgment risk
This is the expensive one. If you simply don't file, LHDN can raise a best-judgment assessment — they estimate your income (usually generously, in their favour) and bill you on that. On top of that estimate they can add a penalty of up to 300% of the tax. You're then stuck disputing a number you didn't choose, which is far harder than just filing on time.
The deadlines you're racing
Form BE (employment income): 30 April on paper, 15 May for e-filing. Form B (business / sole-prop): 30 June on paper, 15 July for e-filing. And remember — being below the tax-payable line doesn't excuse you from filing. If you're above the income threshold, you file regardless.
Already paid but worried about the balance instead? See the late payment penalty (10% + 5%).
Frequently asked questions
What happens if you file your income tax late in Malaysia?
Under Section 112 of the Income Tax Act 1967, late filing carries a fine of RM 200 to RM 20,000, up to 6 months' jail, or both. Separately, if LHDN raises a best-judgment assessment because you didn't file, they can add a penalty of up to 300% of the tax owed.
What are the income tax filing deadlines in Malaysia?
Form BE (employment income): 30 April on paper, 15 May for e-filing. Form B (business / sole-prop income): 30 June on paper, 15 July for e-filing. Form C (companies): within 8 months of the financial year-end.
Do I still need to file if I have no tax to pay?
If your income is above the filing threshold you must still file, even if reliefs bring your tax to zero. "No tax payable" is not the same as "no need to file" — and late filing can still draw a Section 112 fine.
What is a best-judgment assessment?
If you don't file, LHDN can estimate your income themselves and bill you on that estimate — usually higher than reality — and add a penalty of up to 300% of the assessed tax. You then have to dispute it, which is far harder than just filing on time.
The cheapest filing is an on-time one. MyTaxMate gets your Form BE / B ready before the deadline and counts down on every screen — so late filing never happens.
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