What happens if my company files Form C late?
Not filing a return on time is an offence under s.112(1): a fine of RM200 to RM20,000, imprisonment of up to six months, or both. In practice LHDN often offers to compound the offence for a lower amount, and late payment penalties may also apply.
LHDN's Offences, Fines and Penalties table lists the legal consequences.
Legal penalty: not returning an income tax return form, or failing without reasonable excuse to give notice of chargeability, is an offence under s.112(1). The court can impose:
- a fine of RM200 to RM20,000,
- imprisonment of up to six months, or
- both.
Repeat default. Failing to file for two years or more carries a fine of RM1,000 to RM20,000, up to six months in prison, or both, plus a special penalty of treble the tax the Director General estimates (s.112(1A)). Instead of prosecuting, the Director General may require a penalty of treble the tax payable for the year (s.112(3)).
What usually happens: LHDN normally sends reminders and may offer a compound (a payment to settle the offence without going to court). Persistent defaulters are more likely to be prosecuted. Where LHDN issues an estimated assessment instead, the tax is based on its estimate, which is often higher than the true figure.
Tax due: if tax is payable, unpaid amounts after the due date attract the late payment penalty under s.103 (see the separate answer).
Directors: directors can be liable as officers of the company for offences committed by the company.
What to do if you are late:
- File as soon as possible rather than waiting.
- Pay any tax due.
- Write to LHDN explaining the cause if there was a genuine reason.
A nil return still needs to be filed on time.
Legal basis
- Income Tax Act 1967, s.112(1), (1A) and (3)
- Income Tax Act 1967, s.77A
Sources
Applies to YA 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- When do I pay withholding tax to LHDN and what is the penalty for paying late?Withholding tax must reach LHDN within one month after you pay or credit the non-resident, even if you did not deduct it. Late payment adds 10% of the unpaid amount under s.107A(2), s.109(2) or s.109B(2), depending on the payment, and the related expense can be disallowed.
- What is the penalty for paying company income tax late?Company tax unpaid after its due date is increased by 10% under s.103(3). The earlier extra 5% step has been deleted from the Act. A company's balance is due on the last day of the seventh month after year end. A CP204 instalment not paid by its due date carries 10% under s.107C(9).
- When is the Form C deadline for a Malaysian company?Form C must be submitted electronically within seven months after the company's financial year end. A company with a 31 December year end therefore files by 31 July of the following year. Any tax balance is also due by the same date.
- How and when can I revise my CP204 tax estimate (CP204A)?A company can revise its CP204 estimate in the 6th, 9th and 11th month of its basis period, in any or all of the three. The latest revision is the one used to test the 30% under-estimation penalty. The new instalment starts from the 5th or 6th, 8th or 9th, or 11th instalment respectively.
- What is the penalty if my CP204 estimate is too low?For companies the penalties sit in s.107C. If tax payable exceeds the latest estimate by more than 30% of the tax payable, 10% is charged on the part of the excess above that 30% (s.107C(10)). An instalment not paid by its due date carries 10% of the unpaid amount (s.107C(9)). With no estimate at all, 10% is added to the tax payable.