Quick answer: A company must file its income tax return within 7 months after the close of its accounting period. For a 31 December year end, that is 31 July. LHDN's 2026 filing programme gives e-Filing a one-month grace period. Not filing is an offence under section 112(1) of the Income Tax Act, with a fine of RM200 to RM20,000, imprisonment of up to 6 months, or both, and tax paid late is increased by 10%.
- Due date: 7 months after the accounting period ends.
- e-Filing has a one-month grace period under LHDN's 2026 programme.
- Section 112(1): fine of RM200 to RM20,000 and/or up to 6 months' jail.
- Late balance of tax: 10% increase. Late instalment: 10% of the unpaid instalment.
- Dormant companies still file a return.
Due Dates
| Item | Rule |
|---|---|
| Return due date | Within 7 months after the close of the accounting period |
| Example | Year end 31 December: due 31 July |
| e-Filing grace period | 1 month under LHDN's 2026 programme. The programme gives no end date for companies |
| Balance of tax | Due within 7 months of the close of the accounting period, or any approved extension |
| Instalments | Due by the 15th of each month |
Penalties
| Situation | Consequence |
|---|---|
| Not filing the return (s112(1)) | Fine RM200 to RM20,000 and/or up to 6 months' jail |
| Late balance of tax | 10% on the outstanding amount |
| Instalment paid late | 10% on the unpaid instalment for that month |
| Actual tax exceeds estimate by more than 30% | 10% on the excess over 30% of actual tax |
| Leaving out income (s113(1)(a)) | RM1,000 to RM10,000 plus 200% of tax undercharged |
| Incorrect information (s113(1)(b)) | RM1,000 to RM10,000 plus 200% of tax undercharged |
Underestimation Formula
LHDN's formula is [(actual tax less estimated tax) less (30% of actual tax)] x 10%. For example, if actual tax is RM100,000 and the revised estimate was RM60,000, the excess is RM40,000. Less 30% of actual tax (RM30,000), RM10,000 remains, and the increase is RM1,000.
If You Are Late
File as soon as you can
Use e-Filing. Filing within the grace period is treated as on time.
Pay the balance
Penalties are calculated on what remains outstanding.
Appeal if you have grounds
Send a written appeal to the HASiL Collections Unit within 30 days of the statement of account. Tax stays payable while the appeal is pending.
Need help with this? WhatsApp us. We will check your case first.
Mistakes
Assuming a dormant company need not file
Dormant companies and those that have not started business still file the return.
Counting the grace period as the due date
The due date stays 7 months. Grace is a concession for e-Filing.
Relying on the grace period for Form E
Payment grace does not apply to Form E.
How We Help
What we handle for you
Accounts and filings
- Keep your accounting records and prepare year-end financial statements.
- Help with the tax and statutory filings that follow from your accounts.
Payroll
- Run payroll and prepare the monthly and yearly payroll filings.
Why companies choose us
Accounting, payroll and company set-up under one roof
- We also handle company incorporation and expatriate pass applications, so your accounts, payroll and structure stay aligned.
A Kuala Lumpur firm
- Neutral Consulting PLT is led by a Managing Partner who is a member of the Malaysian Institute of Accountants.
Frequently Asked Questions
Quick answers.
When is the company tax return due?
Within 7 months after the close of the accounting period.
What is the due date for a 31 December year end?
31 July of the following year.
Is there a grace period?
LHDN's 2026 programme lists a one-month grace period for e-Filing of the company return.
What is the penalty for not filing?
Under section 112(1), a fine of RM200 to RM20,000, imprisonment of up to 6 months, or both.
What if I pay the tax late?
A 10% increase applies to the outstanding balance.
What if an instalment is late?
10% on the unpaid instalment for that month.
What if I underestimate my tax?
A 10% increase applies to the excess where actual tax exceeds the estimate by more than 30% of actual tax.
Does a dormant company file?
Yes. LHDN says dormant companies and those that have not started business file the return.
Which offences apply to wrong returns?
Sections 113(1)(a) and (b): RM1,000 to RM10,000 plus 200% of tax undercharged.
Can I appeal a late payment penalty?
Yes, in writing to the HASiL Collections Unit within 30 days of the statement of account.
How long should records be kept?
LHDN's employer guidance refers to 7 years. The company return page says records must be kept for audit purposes.
Can you file for us?
Yes. We prepare and file the return with your accounts.
Sources
Official sources
- LHDN (HASiL), Taxpayer responsibilities for companies
- LHDN (HASiL), Company tax payment
- LHDN (HASiL), Return form filing programme for 2026
- LHDN (HASiL), Offences, fines and penalties
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with LHDN, the Royal Malaysian Customs Department and SSM, or with us, before you act. Checked November 2026.
Talk To Us Now
Questions on your company's accounts or filings? We will check your case first. All consultations are by video call.