Guides
Tax Surcharges & Penalties: How Much Do You Pay If You Are Late?
Updated: 8 November 2026 Independently fact-checked.
Introduction
If you file your return form late or pay your tax late, HASiL can impose more than your original tax. But it is important to understand: there are two different things — a surcharge for paying late, and an offence penalty for committing a particular offence such as filing late.
This article explains the penalty and surcharge schedule verified from official HASiL sources (Income Tax Act 1967, Act 53 — "ACP"). Some details are still marked this item still awaits official confirmation from HASiL — check again with HASiL before deciding. because the full text of the Act has not been quoted at this review.
First: distinguish the surcharge from offence penalties
- Surcharge (s.103 ACP) — an additional charge imposed for paying tax late after the prescribed date.
- Offence penalty (s.112–116, s.120 ACP) — a fine imposed for committing an offence, for example failing to submit a return form, giving inaccurate information, or obstructing HASiL officers.
Both can occur at the same time and their legal bases are different.
Surcharge for paying late (s.103(3))
Based on the official HASiL surcharge schedule (s.103(3) ACP):
- Non-business: paying tax after 30 April causes your tax to rise by 10% of the tax payable — effective from 1 January 2020.
- Business: after 30 June (estimated payment) — a surcharge applies.
For taxpayers making instalment payments, also note: a tax increase may be imposed if the amount of instalment payments is revised lower (Form CP500/CP502).
Filing offence penalties (s.112–116, s.120)
The following is the penalty schedule verified from the official HASiL table (Offences, Fines and Penalties page; ACP 1967 consolidated text):
| Provision | Offence | Penalty |
|---|---|---|
| s.112(1) | Failure to furnish income tax return form (BNCP) within the prescribed period | Fine RM200 to RM20,000; imprisonment up to 6 months; or both |
| s.113(1)(a) | Reporting untrue income | Fine RM1,000 to RM10,000 AND 200% of the tax under-reported |
| s.113(1)(b) | Giving incorrect information | Fine RM1,000 to RM10,000 AND 200% of the tax under-reported |
| s.114(1) | Wilfully evading tax | Fine RM1,000 to RM20,000; imprisonment up to 3 years; or both, AND 300% of the tax under-reported |
| s.115(1) | Leaving Malaysia without settling tax | Fine RM200 to RM20,000; imprisonment up to 6 months; or both |
| s.116 | Obstructing/hindering HASiL officers | Fine RM1,000 to RM10,000; imprisonment up to 1 year; or both |
| s.120(1) | Failure to notify change of address within 3 months | Fine RM200 to RM20,000; imprisonment up to 6 months; or both |
Do not claim penalties that are not listed in the official HASiL schedule.
Transfer pricing surcharge (s.140A(3C))
For reference, the HASiL 2025 Transfer Pricing Tax Audit Framework mentions s.140A(3C): a surcharge on transfer pricing adjustments, effective from 31 July 2025. This is a separate area from the s.103 surcharge.
Next steps if you are unsure
- Pay your tax before 30 April (non-business) or before 30 June (business) to avoid the s.103 surcharge.
- File your return form on time and keep your records.
- Notify HASiL of any change of address within 3 months.
- If you receive a notice or face issues, seek advice from a qualified tax adviser.
Frequently Asked Questions (FAQ)
Q. I filed late but my tax is already paid — am I still liable to a penalty? A. Two different things: filing late can be an offence under s.112, while paying late gives rise to the s.103 surcharge. Both can happen at the same time.
Q. Are surcharge and penalty the same thing? A. No. A surcharge (s.103) is an additional charge for paying late; an offence penalty (s.112–116) is a fine for committing a particular offence.
Q. What is the difference between the 10% surcharge and the 200%/300% penalties? A. The 10% is the surcharge for paying late (s.103(3)). The 200%/300% is the special penalty on under-reported tax for offences under s.113(1) and s.114(1).
Q. I forgot to notify the change of my address. What is the risk? A. Under s.120(1), failing to notify a change of address within 3 months can lead to a fine of RM200 to RM20,000, imprisonment of up to 6 months, or both.
Glossary
- Surcharge — an additional charge on tax payable for paying late (s.103).
- Penalty — a fine for a tax offence (s.112–116, s.120).
- BNCP — Income Tax Return Form (Borang Nyata Cukai Pendapatan).
- DGIR — Director General of Inland Revenue (HASiL).
- YA — Year of Assessment.
- CP500/CP502 — forms related to tax instalment payments (CP500: estimated instalments; CP502: instalment payment notice).
- Transfer pricing — the pricing of transactions between related parties.
Official sources
All sources below were reviewed on 8 November 2026. Official HASiL pages and documents:
- HASiL — Offences, Fines and Penalties (official page)
- Income Tax Act 1967 (Act 53) — official Acts page (legacy consolidated kbase 3718.pdf dead)
- HASiL — Form CP502 (Instalment Payment Notice; example of tax increase)
- HASiL — 2025 Transfer Pricing Tax Audit Framework (s.140A(3C) surcharge reference)