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How to File Taxes on Time and Avoid Penalties in Malaysia

Introduction: How to File Taxes

As a business owner in Malaysia, it’s important to how to file your taxes on time and avoid penalties. The Inland Revenue Board of Malaysia (LHDN) imposes strict penalties for late or non-filing, so it’s important to be aware of the deadlines and requirements.

This article will provide you with a basic guidance on how to file your taxes on time and avoid penalties in Malaysia. We’ll cover topics such as the different types of taxes businesses need to file, the deadlines for filing, and the consequences of late filing or non-filing.

The Different Types of Taxes Businesses Need to File in Malaysia

The types of taxes that businesses need to file in Malaysia vary depending on the type of business and the amount of income it generates. However, some of the most common taxes include:

  • Individual tax: This is a tax on personal income
  • Income tax: This is a tax on the profits of a business.
  • Service Tax: This is a tax charged and levied on taxable services.
  • Real property gains tax: This is a tax on the profit from the sale of real property.
  • Stamp duty: This is a tax on certain documents, such as contracts and deeds.

The Deadlines for Filing Taxes in Malaysia

The deadlines for filing taxes in Malaysia vary depending on the type of tax. And it slightly changes every year.

For example, below are the return dates for 2023:

Self-assessment tax return deadlines

  • Individuals with no business income: File Form BE by April 30th, 2023. The e-filing deadline is May 15th, 2023.
  • Individuals with business income: File Form B by June 30th, 2023. The e-filing deadline is July 15th, 2023.

Corporate tax filing deadlines

  • Form EA: Submit to employees by February 28th, 2023. This is their individual statement of remuneration from the financial year.
  • Form PCB2: Submit to employees by February 28th, 2023. This is a letter confirming that the employer has made all of the tax withholdings for a given period.
  • Form CP58: Submit to agents, dealers and distributors by February 28th, 2023. This is a commission statement.
  • Form E: Submit to LHDN by March 31st, 2023. This is a statement of payments made to a business’ employees, plus MTD/PCB deductions from the year. The e-filing deadline is usually one month later, on April 30th, 2023.
  • Partnerships: File Form P by June 30th, 2023. The e-filing deadline is July 15th, 2023.

Form C and Form PT, which are the income tax return forms for companies and LLPs respectively, need to be submitted to LHDN within 7 months after the end of the financial year, depending on the date of the company’s financial year. The estimated deadline for e-filing is one month later, which is 8 months after the end of the financial year.

The Consequences of Late Filing or Non-Filing Taxes in Malaysia

The consequences of late filing or non-filing taxes in Malaysia can be severe. The LHDN can impose penalties of up to 200% of the amount of tax due, as well as interest charges.

In addition, the LHDN can also issue a warrant of arrest for businesses that fail to file their taxes.

Where to Pay Taxes in Malaysia

There are a many different places where individual and businesses can pay their taxes in Malaysia. Easiest option is to pay online via the banking sites, or directly through the LHDN’s website. Another option is to pay at one of the LHDN’s branches.

You can pay offline via the counters at these banks:

  • CIMB Bank
  • Public Bank
  • Maybank
  • Affin Bank
  • Bank Rakyat
  • Bank Simpanan Nasional

And you can pay via most of the post offices in Malaysia:

  • POS Malaysia (cash payment only)

Also, if you would like to pay via internet, you can do so via the websites from these banks:

  • Alliance Bank
  • CIMB Bank
  • Citibank
  • Hong Leong Bank
  • Maybank
  • Public Bank
  • RHB Bank
  • Bank Simpanan Nasional
  • MBSB Bank

Note: Please note that the information above is subject to change.

The Malaysia Tax Website

The Malaysia tax website is a good resource for businesses that need information on filing taxes. The website can be found at:

How to File Taxes, tax filing in malaysia

How Webnacc Business Solution Can Help

With the above information, we hope you now know how to file taxes. But if not, don’t worry. We at Webnacc Business Solution can help. We are a reliable and affordable accounting and bookkeeping firm in Penang. We can help you file your taxes on time and avoid penalties. We offer a variety of services, including:

  • Preparing your tax returns
  • Filing your taxes online
  • Helping you understand the tax laws
  • Providing tax advice

We are easy to work with,  and dependable. We understand that businesses have unique needs, and we work with you to develop a customized solution that meets your specific requirements. We are committed to providing you with the highest quality service at a competitive price.

Don’t hesitate to contact us today for a free consultation!

Conclusion

By following the tips in this article, you can file your taxes on time and avoid penalties in Malaysia. This will help you protect your business from financial problems and ensure that you are compliant with the law.

Disclaimer: The information in this article is accurate to the best of our knowledge, but it is subject to change. Please verify the latest information from the relevant authorities before taking any action.

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