Guides
Additional Assessment & Time Limits: When Can HASiL Reassess?
Updated: 8 November 2026 Independently fact-checked.
What is an additional assessment?
In the self-assessment system, you report income and compute tax in your tax return. An additional assessment is a new assessment made by the Director General of Inland Revenue (LHDN) when he finds that no assessment was made for a year, or that the existing assessment is insufficient — for example because income was not fully reported.
This power comes from Section 91 of the Income Tax Act 1967 (Act 53), and it is accompanied by certain time limits. These time limits protect you: after that period ends, LHDN cannot make an additional assessment except in exempted circumstances.
Section 91: general time limits
| Provision | Situation | Time limit |
|---|---|---|
| s.91(1) | No assessment / insufficient assessment made | 5 years after the end of the relevant year of assessment |
| s.91(3) | Fraud, wilful default, or negligence | No time limit (at any time) |
| s.91(5) | Following a determination under s.140A(3) (transactions whose main purpose is to obtain a tax benefit) | 7 years after the end of the year of assessment |
| s.91(4) | Assessment/exemption cancelled or court determination on appeal | 5 years |
| s.91(2) | Tax refunded by mistake (fact/law) | Not more than 5 years after the tax was refunded |
| s.91(7) | Mutual agreement procedure (MAP) under s.132 | No time limit |
Meaning of the 5-year time limit
Under s.91(1), if no assessment or an insufficient assessment is made for a person, the Director General may make an assessment or additional assessment within that year or within 5 years after the end of it for the relevant year of assessment.
Example: for Year of Assessment 2025 (ending 31 December 2025), the 5-year period generally runs until the end of 5 years after 2025 — a general additional assessment can still be made within that period.
When is there no time limit?
Under s.91(3), if fraud or wilful default is committed by any person, or negligence relating to tax occurs, an assessment may be made at any time to recover the tax loss. This means negligence in reporting income is not protected by the 5-year time limit.
As a taxpayer, this is why records need to be kept for 7 years — far beyond the general 5-year time limit, and it helps you prove your position if you are audited.
s.91A: amended returns
If you submit an amended return under s.77B (including corrections due to an additional assessment), the assessment is deemed to be made on the date the amended return is submitted. This maintains clarity of assessment dates in the system.
What should you do if you receive an additional assessment notice?
- Do not ignore it. Verify the assessment details and compare them with your records.
- Check the date. Make sure the assessment is still within the valid period (generally 5 years, except fraud/negligence or a s.140A(3) determination).
- Prepare your records. 7-year records are the basis for an objection or review.
- Get advice. If you disagree, consult a qualified tax adviser; review/ appeal have official channels (see the drafts penalti-rayuan and notis-taksiran-sistem-taksiran-sendiri).
Official sources
All sources below were reviewed on 8 November 2026. Official HASiL pages and documents: