Estimated Assessment (Best Judgment Assessment): When HASiL Can Assess Without a Form

Introduction

In the self-assessment system, you are responsible for reporting your income and computing your own tax in the BNCP. But what if you do not submit a BNCP at all, or submit it late?

In that situation, the Director General of Inland Revenue (DGIR/HASiL) may make an estimated assessment — also known as a best judgment assessment — based on the information available. This article explains when HASiL may do so, what it means, and how to object to it.

Legal basis: s.90(3) and s.91(1)

The power to make an estimated assessment comes from subsection 90(3) of the Income Tax Act 1967 (Act 53). An estimated assessment may also be made under s.91(1) (additional/estimated assessment).

Under Public Ruling No. 7/2020 (PR 7/2020), the term "Notice of assessment" includes an estimated assessment under s.90(3) or s.91(1).

When can HASiL make an estimated assessment?

An estimated assessment under s.90(3) is made when the BNCP is not submitted or is submitted late (outside the prescribed period). These are among the most common situations that trigger an estimated assessment:

you do not submit a BNCP at all;
you submit a BNCP after the prescribed period.

What does "according to the best of his judgment" mean?

An estimated assessment is made "according to the best of his judgment" of the DGIR. This means the assessment must be made honestly and reasonably — not arbitrarily or punitively. Its basis is usually the information available to the DGIR.

Your rights: objecting via Form Q

You have the right to appeal against an estimated assessment within 30 days after the notice of assessment is served, using Form Q.

Key things to know:

Since Year of Assessment 2019: if an estimated assessment under s.90(3) is made against a company/LLP/trust/cooperative, a Form Q appeal must be submitted together with the relevant BNCP (s.99(1A)).
Form Q for companies/LLPs must be signed by the person authorised under s.75/75B of the ITA.

e-Appeal of Assessment via MyTax

From 1 June 2026, appeals against assessments may be lodged online via MyTax (e-Appeal).

If you do not object

If you do not object within the prescribed period, the assessment may become final.

this item still awaits official confirmation from HASiL — check again with HASiL before deciding. notes from research

Frequently Asked Questions (FAQ)

Q. I did not file my form last year. Can HASiL assess me directly? A. Yes — if the BNCP is not submitted or is submitted late, HASiL may make an estimated assessment under s.90(3) (and s.91(1) for additional/estimated assessment), based on available information.

Q. What is the difference between an estimated assessment and a normal assessment? A. An estimated assessment is made without a complete BNCP, "according to the best of his judgment" of the DGIR. A deemed assessment under s.90(1) relates to a complete BNCP. They are different.

Q. Can I object to an estimated assessment? A. Yes — via Form Q within 30 days after the notice is served. Since YA 2019, for companies/LLPs/trusts/cooperatives, the appeal must be accompanied by the BNCP (s.99(1A)).

Q. I am a company. Do I need to submit the BNCP with Form Q? A. Yes — from Year of Assessment 2019, an appeal against an assessment under s.90(3) by a company/LLP/trust/cooperative must be accompanied by the relevant BNCP. Form Q for companies/LLPs must be signed by the authorised person under s.75/75B of the ITA.

Q. Can an appeal be made online? A. From 1 June 2026, yes — via MyTax (e-Appeal of Assessment).

Glossary

BNCP — Income Tax Return Form (Borang Nyata Cukai Pendapatan).
DGIR — Director General of Inland Revenue (HASiL).
Estimated assessment (best judgment assessment) — an assessment made under s.90(3) (or s.91(1)) when the BNCP is not submitted or is submitted late.
Deemed assessment — concept under s.90(1) relating to a complete BNCP.
Form Q — form for appealing against an assessment (within 30 days).
e-Appeal — online appeal via MyTax (from 1 June 2026).
YA — Year of Assessment.