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Dear Valued Client / Business Associate

The Enforcement Division of the Royal Malaysian Customs Department (“RMCD”) has just announced that remission of late payment penalty will be considered for companies with outstanding GST payable and/ or penalty who make payment during 1 May 2021 to 31 August 2021, subject to meeting the following conditions:-

Category

1 - Companies with outstanding GST and late payment penalty

2 - Companies with only outstanding late payment penalty

Condition

Full payment of GST* is made during 1 May 2021 to 31 August 2021

20% of late payment penalty is paid during 1 May 2021 to 31 August 2021

Remission

100% remission of late payment penalty

80% remission of late payment penalty

*It appears that payment for the late payment penalty is not required before application for remission can be made.

The application for remission shall be made via the TaxPayer Access Point (“TAP”) together with the supporting documents as follows:-

  • Application letter for remission of penalty  
  • Proof of payment 
  • GST Account Statement before payment is made   

It was also reiterated in the same announcement that a travel ban can be issued to business owners to prevent the persons from leaving Malaysia unless the GST and/or penalty due is paid and court action may be initiated within 90 days from the date the demand for payment is issued.

Please click on the above header link for a copy of the RMCD’s announcement.

Our highlights are intended to provide a general overview of the key proposed tax changes and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions.

Should you have any questions or require further clarification, please do not hesitate to email or contact any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organization.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Regards,

Ng Sue Lynn

Executive Director
Indirect Tax Practice

Dato’ Tan Sim Kiat

Advisor
Indirect Tax Practice

Yap Choon Ling

Director
Indirect Tax Practice