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LHDN would allow deferment of tax payments and penalties

Further to the announcement by the Prime Minister that tax payments and penalties could be deferred under the Pemerkasa Plus Stimulus Package, the Malaysian Inland Revenue Board (MIRB) has published the attached Media Statement on 3 June 2021.

Pursuant to the media statement,

a. MIRB will grant deferment of penalty payments to year 2022 provided the principal tax amount is paid. By this it means, the penalty portion can be deferred but the principal tax amount cannot be deferred.

The penalties could be related to Income Tax Act 1967, Real Property Gain Tax 1976 and Stamp Act 1949.

b. MIRB will the application for the scheduling of tax payment for taxpayers who have lost their source of income or are facing issues in paying tax due to the Mandatory Confinement Orders (MCO).

c. MIRB will review any appeal for penalties imposed, if the taxpayer could provide valid reasons. Consideration would be given on case-by-case basis.

The above relaxation is only applicable to taxpayers who are affected by the COVID-19 pandemic and MCO.

Application must be made to the relevant MIRB branch office where the taxpayer’s tax file is handled.

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