Income Tax filing Malaysia

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Income tax filing Malaysia

Our discussion on income tax filing Malaysia and process of income tax return are as follows:


 Income Tax filing Malaysia


Limited liability partnership (LLP), LLC, Society, trusty bodies are liable to pay tax to government every year.  Those corporations have not started business are not responsible to apply CP 204. Tax payer needs the following:

  • Tax return form and forwarding letter with supporting papers
  • Computing corporate tax
  • Declare income and expense
  • Audit report
  • Tax payment clear within the period

Each corporation may pay taxation as monthly installment system.


Penalty of late installment payment


  • 10 percent additional cost will be applied if fail to pay monthly installment tax on time.
  • If there is found different between actual and estimated tax around 30 percent then 10 percent tax will be increased from actual tax.
Penalty on late payment

If the tax payer does not pay tax on time 10 percent additional tax will be applied with outstanding amount.

Appeal on penalty amount

If the applicant, company unlike to pay penalty will submit written copy within 30 days of accounts date.

Mode of payment

Payment can be made at counter of IRBM, Cheque or bank draft, at bank and by internet

Corporate Tax Rate

(As guide of income tax filing Malaysia)

Income Tax assessment of year 2016

If paid up capital is less than RM 2 point 5 millions

  • 1st RM ½ million: 19 percent (Tax)
  • Other balance: 24 percent (Tax)
Tax for individual


Income has to declare to IRBM who is identified as tax payer. Tax payer shall submit tax form by and before Thirty April of every year. Tax payer shall declare income and expenditure, record of audit etc.

 Tax payer shall keep the following papers:

Form ES, Medical receipt, Zakat receipt, Insurance papers, book purchase receipt and donation papers if any, birth certificate of children, work paper, marriage certificate and dividend

Chargeable income Calculations (RM) Rate % Tax (RM)
0 to 5000 2500 zero zero
5001 to 20,000 5000 to 15,000 One 0 to 150
20001-35000 20000 to 35000 5 150 to 750
70001-100000 70000 to 100000 21 5600 to 6300
600001-1000000 1000000 to next amount 28 238650

How to register tax file?

How to register Tax file?(As guide of income tax filing Malaysia)
  • Register through online
  • Or, register to contact with your nearest branch
Documents require for registration (As guide of income tax filing Malaysia)
  • Form 9: Certificate of registration
  • Form 49: Name and address of the directors
  • Documents should be certified by Company Secretary
  • Company form, search available on website.
Tax exemption(As guide of income tax filing Malaysia)


Retirement gratuity, medical benefit, leave passage, gratuity paid upon contract, gratuity paid apart from public fund, compensation for the loss of staff hiring, pension, scholarship, death gratuity, dividend, royalty, income from outside of Malaysia and some others

Offences, Fine and penalty

Offences Provision Fine (RM)
Failure to process income tax form without cause 112 (two) 200-two thousand or imprisonment or both
Failure to give the payable tax without valid cause 112 (two) 200-two thousand or imprisonment or both
If improper tax return is made 113 (one) (a) 1000-10000 and 200 percent tax additional applicable
If incorrect information is given 113 (one) (b) 1000-10000 and 200 percent tax additional applicable
Intentionally if any person assist others to evade tax 114 (one) 1000-20000 and 300 percent tax additional applicable or imprisonment or both
Assist others to declare income 114 (one A) 2000-20000 or imprisonment or both
Attempt  to go out from country without pay of tax 115 (one) 200-2000 or imprisonment or both
If any officer of Inland Revenue makes obstacle to carry responsibilities 116 1000-10000 or imprisonment or both
If fails to keep proper papers 119 A 300-2000 or imprisonment or both
If change office address without notice 120 (0ne) 200-2000 or imprisonment or both
If pay tax after thirty (30) June of business 103 (4) 10 percent or 5 percent additional tax will be applicable

Close tax file permanently

Close tax file permanently


  • If company permanently is closed from business
  • If the company is financially crime and have court order

A forwarding letter has to submit to close tax file.

You may find other writing apart of Income Tax filing Malaysia as below:-

Malaysia-S & F Consulting Firm Limited

Tropicana Avenue, A-15-03, No.12, Persiaran Tropicana, Tropicana Golf & Country Resort PJU3,
Petaling Jaya, Selangor 47410
Phone: +601131234372
Secondary phone: +601136901890


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