Missed The Form C Deadline?
If you file company tax late, penalties compound fast. Our team can help you assess the situation, settle outstanding amounts, and set up a proper compliance calendar.
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Many company owners are too focused on daily operations to notice the company tax filing (Form C) deadline slipping by. If this has happened — or is happening — to your company, it’s important to understand what actually happens once the deadline passes. It’s not just a routine reminder.
What Happens Immediately If You File Company Tax Late
LHDN treats failure to submit Form C within the prescribed period as an offence under the Income Tax Act 1967 — not merely an internal administrative matter. Penalties can be imposed immediately once the deadline passes, and they keep growing if left unaddressed.
Fine Under Section 112(1): Failure To Submit The Tax Form
Failing to submit Form C within the prescribed period is an offence under Section 112(1) of the Income Tax Act 1967, carrying a fine of between RM200 to RM20,000, imprisonment of up to 6 months, or both.
Late Payment Charge Under Section 103(3)
If there’s outstanding tax, an additional 10% penalty is imposed on the outstanding amount right after the payment deadline. If it remains unpaid after 60 days, a further 5% is imposed on the remaining balance. These two penalties — failure to submit and late payment — can be imposed separately and simultaneously.
If The Form Submitted Contains Inaccuracies
Under Section 113(1), providing inaccurate information in Form C can result in a fine of RM1,000 to RM10,000, AND 200% of the amount of tax undercharged. This is why it matters to submit accurate information, not just submit on time.
Other Impacts Beyond The Fine When You File Company Tax Late
- Cashflow impact: Tiered surcharges (10% plus an additional 5%) cause the outstanding amount to grow quickly if not addressed early.
- Poor compliance record: Can affect future loan or bank financing applications.
- Higher audit risk: Inconsistent tax records are more likely to attract LHDN’s attention.
How To Avoid Situations Where You File Company Tax Late
- Understand your company tax rate: Know whether your company qualifies for the SME rate (15%/17%/24% depending on chargeable income) or the standard 24% rate. Read our guide on the corporate tax rate in Malaysia for the full breakdown.
- Set up a dedicated compliance calendar: Don’t rely on memory alone for the Form C deadline.
- Get help early: If your company’s internal processes aren’t stable, involve an accountant or company secretarial firm before the deadline, not after receiving a notice.
Always verify the latest rates and deadlines with LHDN as regulations can change over time.
How SASCO Can Help If You File Company Tax Late
If you’ve already missed the deadline or you’re worried about your company’s current filing status, our team can help you assess the situation, settle any outstanding amounts, and set up a proper compliance calendar so it doesn’t happen again.
Related reading
The Real Deadline: 7 Months (Not 8)
Common Mistakes That Lead to Late Filing Penalties
Frequently Asked Questions
What’s the fine if my company files tax late?
Under Section 112(1) of the Income Tax Act 1967, a fine of RM200 to RM20,000, imprisonment of up to 6 months, or both. This is separate from the late payment charge under Section 103(3).
Is the late payment charge different from the failure-to-submit fine?
Yes. Section 112(1) imposes a fine for failing to submit the form, while Section 103(3) imposes a 10% surcharge (plus a further 5% after 60 days) on outstanding tax. Both can apply simultaneously.
What happens if the submitted form contains errors?
Under Section 113(1), inaccurate information can result in a fine of RM1,000 to RM10,000, plus 200% of the amount of tax undercharged.
How do I know my company’s tax rate?
The rate depends on your company’s SME status and chargeable income. Refer to our guide on the corporate tax rate in Malaysia for the full breakdown by income tier.
If I’ve already missed the deadline, what should I do now?
Submit the form and settle any outstanding amount as soon as possible to limit further surcharges, and get professional help if needed to ensure the information submitted is accurate.
Further reading:
- Corporate Tax Rate in Malaysia: What Business Owners Need to Know
- Why Is Corporate Tax Filing So Confusing for SMEs?
Official reference: Inland Revenue Board of Malaysia (LHDN)
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