LHDN allows flexibilities on tax payments, penalties

It aims to ease taxpayers’ burden and subject to several criteria


THE Inland Revenue Board (LHDN) has provided tax and penalty flexibility to individuals whose incomes are affected by the Covid-19 pandemic and the implementation of the third Movement Control Order (MCO 3.0).

In a statement yesterday, the board said it was to ease the burden of taxpayers in settling tax arrears and tax penalties.

The flexibility offered to the taxpayers are however subject to several criteria.

“First, the deferral of payment of penalties related to their tax obligations to 2022, provided the taxpayer continues to comply with the payment of the principal amount of tax due.

“The penalties included in this offer are penalties imposed in accordance with the Income Tax Act 1967, the Real Property Gains Tax Act 1976 and the Stamp Act 1949.

“Second, consideration of tax payment rescheduling applications for taxpayers who have lost their source of income or face issues in settling tax arrears as a result of the implementation of the MCO,” LHDN said.

LHDN is also considering revising the penalty imposed if taxpayers have strong reasons.

It noted that taxpayers would have to appeal against the penalties imposed and the appeal would be considered by looking at case-by-case basis.

“Taxpayers who wish to apply for this relaxation are recommended to contact the LHDNM branch office which handles their income tax files.

“However, unaffected taxpayers will have to continue paying taxes as required by the law in force,” it added.

LHDN also provided frequently asked questions (FAQs) related to tax matters during the MCO 3.0 period related to this matter, apart from touching on the issue of sending income tax returns and income tax payments.

The FAQs can be achieved through links http://phl.hasil.gov.my/pdf/pdfam/faq_pkp3_1.pdf for the Malay version and http://phl.hasil.gov.my/pdf/pdfam/faq_pkp3_2.pdf for the English version.

Any relevant inquiries and feedback can be forwarded to the LHDN via Hasil Careline at 03-8911 1000/603-8911 1100 (overseas) or Hasil Live Chat and Feedback Form on the LHDN’s official portal at the quick link https://customerfeedback.hasil.gov.my/MaklumBalas/ms-my.