On 16 October 2019, the Inland Revenue Board of Malaysia issued Operational Guideline No. 5/2019, which sets out the penalties for taxpayers who fail to file the tax returns within the prescribed timelines under the Income Tax Act 1967, the Petroleum (Income Tax) Act 1967, and the Real Property Gains Tax Act 1976.
The guidelines explained the following:1) time limits based on assessment periods for companies and individuals, including non-residents; 2) penalties between 15% and 45%, depending on the return’s filing date within 24 months of the deadline; and 3) penalties between 25% and 45% if the return is not made within 24 months of the deadline. The guideline took effect from 1 October 2019 and replaced the previous guideline on penalties for late returns issued in 2015.
