TaxSavvyMY

Late service tax payment penalty

I paid SST 45 days late. What is the penalty?

The situation

The late payment penalty is 10% for the first 30 days, then an extra 15% for the next 30 days.

The law

  • Sec 41, Service Tax Act 2018: Late payment penalty: 10% for first 30 days, plus 15% for each next 30-day period, up to 40%

What it means for you

At 45 days late, the penalty is 25% of the unpaid tax. Example: tax RM10,000: penalty RM2,500. It rises again after 60 days. Pay quickly and ask about remission only if there is a genuine reason.

What to do

  1. Pay the tax now.
  2. Compute the penalty band.
  3. Pay the penalty.
  4. Fix the calendar.

We can do this for youService tax registration and SST-02 returns: MYR 800

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