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Once your business crosses the SST threshold, registration isn’t optional — and missing the window has consequences that go beyond an administrative headache. Here’s what actually happens if you don’t register on time, and what to do if you’re already past it.
When Are You Required to Register for SST?
RM500,000 in annual taxable turnover is the mandatory registration threshold. Once your business crosses this threshold, you’re required to register within 30 days from the end of the month in which the threshold was exceeded.
Penalties for Failing to Register on Time
Failure to register for SST when required is an offence that carries a fine of up to RM50,000, imprisonment of up to 3 years, or both. This is separate from any late filing or late payment penalties that apply once you are registered.
Late Filing and Late Payment Penalties
Once registered, late filing of SST returns attracts a penalty of 10% of the SST payable per 30-day period, capped at 40%. Late payment attracts a separate penalty of 10% initially, plus an additional 5% for each further 30-day period the amount remains unpaid, also capped at 40%.
Other Consequences Beyond the Fine
- Backdated liability: Businesses may need to account for SST from the point they should have registered, not just from the actual registration date.
- Cashflow impact: Stacked penalties on unpaid or late-filed SST can add up quickly.
- Pricing issues: If SST wasn’t factored into invoices during the unregistered period, absorbing it retroactively can eat into margins.
How to Check If You've Crossed the Threshold
If you’re unsure whether your business needs to register, the safest approach is to review your annual taxable turnover against the RM500,000 threshold now rather than waiting for a notice. See our full SST registration guide for the complete step-by-step process.
Always verify the latest thresholds and rates with the Royal Malaysian Customs Department (RMCD), as these can change over time.
Staying on top of your accounting records also makes it easier to track when your business crosses the registration threshold — our accounting team can help keep things organised.
Frequently Asked Questions
What's the SST registration threshold?
How long do I have to register once I cross the threshold?
What's the penalty for not registering on time?
What if I've already missed my registration window?
Are late filing and late payment penalties the same thing?
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