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Penalty Remission for Late Payment or Non-Payment of GST
On 31 May 2021, the Royal Malaysian Customs Department (“RMCD”) announced in a special alert that taxpayers are eligible to apply for remission of late payment penalty for any GST / penalty due but has not been remitted to the RMCD to date.
The conditions to apply for the remission of late payment penalties are as follows: -
Category 1 | Taxpayer owes RMCD outstanding GST and penalty |
|---|---|
Condition | Taxpayer has to make full payment of outstanding GST to RMCD within the period from 1 May 2021 to 31 August 2021. |
Eligibility | 100% remission of penalty |
Category 2 | Taxpayer owes RMCD outstanding penalties only |
|---|---|
Condition | Taxpayer has to make 20% of the outstanding penalty within the period from 1 May 2021 to 31 August 2021. |
Eligibility | 80% remission of penalty |
The application for remission of late payment penalty can be made via GST Taxpayer Access Point (TAP) under “Request for Remission” once the outstanding GST / 20 % of the outstanding penalty is remitted to RMCD.
RSM Comment:
The remission of penalty from RMCD is to encourage taxpayers to settle any outstanding GST / 20% penalty due to RMCD before 31 August 2021.