Income Tax 2023 Deadline Malaysia: Late Submission Penalty Lhdn

Income Tax 2023 Deadline Malaysia and due date: Late filing and Submission Penalty Lhdn

lhdn income tax 2023 deadline malaysia

What is income tax 2023 deadline malaysia? Income tax malaysia is a tax imposed by the government on individuals and corporations that generate income within their jurisdiction. It is an obligation to the individuals or corporations that are entitled to this income tax, which is entirely called as “taxpayers”.

In addition, the income tax that has been contributed by the taxpayers will be used to fund public services, provide facilities to the public and pay the government’s obligations for the entire year.

The eligible taxpayers are entitled to pay their income tax annually before the deadline stated by the IRB. Taxpayers must file the tax declaration form through e-filing to avoid late submission penalty lhdn.

This is to ensure that the taxpayer is exempt from any penalties and legal actions. Hence, the income tax deadline for year 2023 (i.e year end 2022) is on 15th May 2023.

What Happens If I Miss Income Tax 2023 Deadline Malaysia

According to the Inland Revenue Board (IRB), the last dates for income tax submission through manual and e-filling is on April 30, 2023 and May 15, 2023 respectively.

READ MORE >> E Filing Lhdn Login 2023: Hasil Efiling Income Tax In Malaysia

Individuals and corporations taxpayers that missed the deadline within the stipulated period will be entitled to late submission penalties, increasing late payment fees and legal actions by the government.

late submission penalty lhdn due date 2023

Penalties of 10% will be imposed by the IRB on the late declaration and filing of the income tax during the assessment year. In addition, pursuant to the Income Tax Act 1967, a taxpayer who fails to furnish the income tax annually without any reasonable excuse will be fined between RM200 and RM20,000, or jailed for not more than six months, or both.

Therefore, every taxpayer needs to be alert and keep updating the income tax deadline to avoid these penalties.

READ MORE >> Tax Relief Malaysia 2023: Income Tax Deduction & Exemption

How To Calculate Late Submission Penalty Lhdn Tax E Filing Malaysia

In practice, the IRB has set the late filing penalty rates for taxpayers who fail to submit and pay their income taxes.

A late filing penalty of up to 35% will be imposed on the taxpayer from the taxable amount that needs to be paid by the taxpayer.

Below are the rates of late submission penalties allowed by the IRB;

More than 12 month from lhdn deadline 202320%
Between 12 months to 24 months25%
Between 24 months to 36 months30%
More than 36 months35%

For example: 

  • Outstanding amount of estimated tax need to be paid = RM2,000
  • Rate for fail to submit tax filing up to 12 months = 20%
  • Total penalty = RM2,000 x 20% = RM400

When Is The Income Tax deadline For Personal & Company

Individual and corporation taxpayer have different timeline of the deadline income tax submission for year 2023.

The malaysia income tax submission and filing deadline for personal taxpayer is on 15 May 2023.

However, for corporation taxpayer, the lhdn due date 2023 is on 30 April 2023.

The payment and submission of tax forms need to be done before these deadlines.

What Is The Penalty For Late Payment Of LHDN CP204

CP204 is a form that needs to be submitted in order to declare the estimated tax payable to IRB.

This form is required to be filled out by companies, Limited Liability Partnerships (LLP) and trust bodies to declare their tax payable for the assessment year.

In addition, the completed CP04 form needs to be filed and submitted to the IRB within a stipulated time.

Submissions can be done online through the official website, MyTax.

cp204 payment

Taxpayers who fail to file and submit this form will be entitled to a penalty.

A fine of between RM200 and RM20,000, or being jailed for not more than six months, or both, will be imposed on the taxpayers.

Any late filing will be entitled to 10% penalties on their unpaid tax balance.

Hence, submission and payment are crucial to be made annually to avoid the penalties.

How Can I Avoid e Filing Penalty

The penalties imposed by the IRB will reflect the bad performances of the corporation and individual in terms of paying tax on time.

Because of that, every taxpayer needs to be aware of the deadline announced by the IRB.

This is to ensure that every taxpayer has sufficient time to prepare to submit and pay the income tax before lhdn due date 2023.

Other than that, paying and submitting the tax form before the lhdn deadline 2023 due date can help the taxpayer to avoid the late filing penalty.

In a nutshell, every taxpayer needs to know their responsibilities and obligations to pay the income tax to the government every year.