Tax Filing Deadline Part 1 of 2

eKTP 93

We as a taxpayer should aware of the deadline of income tax returns filing.

Income Tax Return Filing (ITRF)

a) Companies, limited liabilities partnership (LLP), Trust bodies and co-operative society

Under Subsection 77A(1), ITA 1967, the filing of the ITRF is 7 months from the date following the close of the accounting period of the companies, LLP, trust bodies and co-operative society.

In practise, Inland Revenue Board (IRB) normally will give grace period of 1 month from the due date. For example, if the company financial year end (FYE) is 30 June 2018, then 7 months from the end of the company financial year is not later than 31st January 2019. With the grace period of 1 month, the filing deadline is extended to on or before 28 February 2019.

The above grace period of 1 month is only eligible for ITRF furnished by electronic filing (e-filing). It also applies to payment of balance of tax under Subsection 103(1).

b) individuals, partnerships, associations, deceased persons’ estate and hindu joint families

Please refer to the table below for due date for submission of ITRF

Grace period for submission of ITRF via e-filing is 15 days from the due date, however, if submission via postal, only 3 working days from the due date is allowed. If by hand delivery, no grace period is given.

However, for those taxpayers who failed to submit the tax return on the due date, to encourage submission, the Government has announced a special programme called Special Voluntary Disclosure (“SVD”), this program is proposed to reduce penalty for voluntary disclosure of unreported income which launched with immediate effect. This program offers the reduced penalty rates for taxpayers whom voluntarily declare any “unreported income” for Malaysian tax purposes, including that which is in offshore accounts. For more details, please refer to our e-article 88.

For taxpayers who failed to submit tax return on the due date and the tax payable is NIL, the IRB may require the tax payer to pay a compound up to RM 20,000.

Note: Grace period / extension of time will not be taken into consideration if the taxpayer fails to furnish a return within the grace period / extension of time granted by the IRB.

c) REmuneration return of employers (Form e)

Under Subsection 83(1), ITA 1967, the form must be furnished by every employer on or before 31 March. Form E will only be considered complete if C.P.8D is furnished on or before the due date for submission of the Form E.

Grace period for submission of Form E via e-filing is until 30 April, however, if submission via postal, only 3 working days from the due date is allowed. If by hand delivery, no grace period is given.

**Employers which are companies are compulsorily required to submit Form E via e-Filing (Form e-E) with effect from the Year of Remuneration 2016.

d) ** Dormant companies, limited liabilities partnership (LLp), Trust bodies and co-operative society

Dormant Companies, Limited Liabilities Partnership (LLP), Trust Bodies and Co-operative Society are required to submit ITRF, this also including Form E.

The filing of the ITRF is 7 months from the date following the close of the accounting period of the companies, LLP, trust bodies and co-operative society.

Grace period for submission is 1 month from the due date, i.e.total 8 months from the date following the close of the accounting period. However, if submission via postal, only 3 working days from the due date is allowed. If by hand delivery, no grace period is given.

** Note: Dormant with reference to the above means:

Never commenced business operations since the date it was incorporated;
Had previously been in operation or carried on business but has now ceased business operation;
Had previously been in operation or carried on business but has now ceased business operation;
Had previously been in operation or carried on business but has now ceased business operation and in the progress of strike off the company

Darren YapDecember 28, 2018