Akta Cukai Pendapatan 1967
Applies to: Federal Act — see s 50 (Application of section 49 where husband and wife are living together) · Official text ↗
- The imposition of income tax on income from Malaysia or received in Malaysia (s 3).
- The specific classes of income subject to tax, such as business profits, employment, and dividends (s 4).
- The determination of an individual's residence status in Malaysia for tax purposes (s 7).
- The requirement for individuals to furnish returns of income to the Director General (s 77).
- The service of notices of assessment and the right to appeal against them (ss 96, 99).
- The payment of tax, including penalties for late payment (s 103).
- Offences for failing to furnish returns or wilfully evading tax (ss 112, 114).
- Relief for errors or mistakes made in returns (s 131).
What this law is
The Income Tax Act 1967 (Akta Cukai Pendapatan 1967) is numbered Act 53 in the Laws of Malaysia. Where it applies is set out in section 50 (Application of section 49 where husband and wife are living together).
Its long title, as printed in the official text: An Act for the imposition of income tax.
Read every section, the amendment history and the official copy on our law library page for this Act.
How the Act is arranged
- Part I — Preliminary (ss 1–2)
- Part II — Imposition and general characteristics of the tax (ss 3–17)
- Part III — Ascertainment of chargeable income (ss 18–65F)
- Part IV — Persons chargeable (ss 66–76A)
- Part V — Returns (ss 77–89)
- Part VI — Assessments and appeals (ss 90–102)
- Part VII — Collection and recovery of tax (ss 103–111A)
- Part VIIA — Fund for tax refund (ss 111B–111D)
- Part VIII — Offences and penalties (ss 112–126)
- Part IX — Exemptions, remission and other relief (ss 127–133)
- Part IXA — Special incentive relief (s 133A)
- Part X — Supplemental (ss 134–156)
- Part XI — Implementation of domestic top-up tax and multinational top-up tax (ss 157–239)
Part titles are from the official arrangement of sections.
Time limits in this Act
| What | Limit | Section |
|---|---|---|
| Furnishing a return of income for a person carrying on a business | not later than 30 June in the year following that year of assessment | s 77(1)(a) |
| Furnishing a return of income for a person not carrying on a business | not later than 30 April in the year following the year of assessment | s 77(1)(b) |
| Giving notice to the Director General upon arrival in Malaysia if chargeable to tax | within two months of his arrival | s 77(3) |
| Appealing against an assessment by giving written notice | within thirty days after the service of the notice of assessment | s 99(1) |
| Paying tax due under an assessment made under section 90(3), 91, 92 or 96A | within thirty days after the service of the notice | s 103(5) |
| Making an application for relief in respect of error or mistake | within five years after the end of the year of assessment within which the assessment was made | s 131(1) |
| Requesting the Director General to forward an application for relief to the Special Commissioners | within six months after being informed of the decision | s 131(5)(a) |
Offences and penalties
| Offence | Penalty (as written in the Act) | Section |
|---|---|---|
| Failure to furnish a return or give notice of chargeability without reasonable excuse | fine of not less than two hundred ringgit and not more than twenty thousand ringgit or to imprisonment for a term not exceeding six months or to both | s 112(1) |
| Failure to furnish a return for two years or more without reasonable excuse | fine of not less than one thousand ringgit and not more than twenty thousand ringgit or to imprisonment for a term not exceeding six months or to both; and a special penalty equal to treble the amount of tax charged | s 112(1A) |
| Wilful evasion of tax by omitting income, making false statements, or falsifying records | fine of not less than one thousand ringgit and not more than twenty thousand ringgit or to imprisonment for a term not exceeding three years or to both, and a special penalty of treble the amount of tax undercharged | s 114(1) |
| Assisting in or advising on the preparation of a return resulting in understatement of tax liability | fine of not less than two thousand ringgit and not more than twenty thousand ringgit or to imprisonment for a term not exceeding three years or to both | s 114(1A) |
| Late payment of tax due under an assessment | increased by a sum equal to ten per cent of the tax so unpaid | s 103(3) |
Laws cited on this page
| Act 53 | Income Tax Act 1967 Akta Cukai Pendapatan 1967 | PDF · Official ↗ |
Each law links to our mirror page: a copy of the official text captured on a known date, its version history, and the official source. Law library →
Key sections
| Provision | What it says, in plain words |
|---|---|
| s 1 | The Act is cited as the Income Tax Act 1967 and has effect for the year of assessment 1968 and subsequent years. |
| s 2 | This section provides definitions for key terms used in the Act, such as 'adjusted income', 'basis period', 'business', and 'company'. |
| s 3 | Income tax is charged for each year of assessment upon the income of any person accruing in or derived from Malaysia or received in Malaysia from outside Malaysia. |
| s 4 | Tax is chargeable on income from business gains, disposal of capital assets, employment, dividends, interest, rents, royalties, pensions, and other gains or profits. |
| s 6 | Income tax is charged at rates specified in Schedule 1, with different parts of the schedule applying to different types of persons or income, such as non-residents or co-operative societies. |
| s 7 | An individual is resident in Malaysia if they are in the country for 182 days or more, or meet specific criteria involving shorter periods linked to previous or following years. |
| s 77 | Individuals must furnish a return of income to the Director General by 30 June if carrying on a business, or by 30 April in other cases, in the year following the year of assessment. |
| s 96 | The Director General must serve a notice of assessment on the person assessed, indicating the year, chargeable income, tax charged, and any right of appeal. |
| s 99 | A person aggrieved by an assessment may appeal to the Special Commissioners by giving written notice within thirty days after service of the notice of assessment. |
| s 103 | Tax payable under an assessment is due on the due date, and if unpaid, it is increased by ten per cent of the unpaid amount. |
| s 112 | Failing to furnish a return or give notice of chargeability without reasonable excuse is an offence, punishable by a fine or imprisonment, and may incur a special penalty. |
| s 114 | Wilfully evading tax by omitting income, making false statements, or falsifying records is an offence, punishable by a fine, imprisonment, and a special penalty of treble the undercharged tax. |
Worked examples
Facts. Ahmad, an individual resident in Malaysia, failed to furnish his income tax return for the year of assessment 2022 by the deadline of 30 April 2023. He did not have a reasonable excuse for the delay.
The law. Section 77(1)(b) requires individuals not carrying on a business to furnish a return by 30 April. Section 112(1) states that making default in furnishing a return without reasonable excuse is an offence.
Outcome. Ahmad is guilty of an offence and liable to a fine of not less than two hundred ringgit and not more than twenty thousand ringgit or to imprisonment for a term not exceeding six months or to both (s 112(1)).
Facts. Siti receives a notice of assessment and thinks the tax charged is too high.
The law. A person aggrieved by an assessment may appeal to the Special Commissioners by giving the Director General a written notice of appeal in the prescribed form, stating the grounds, within thirty days after service of the notice of assessment, or such extended period as may be allowed under s 100 (s 99(1)).
Outcome. Siti must lodge her notice of appeal within thirty days after the notice of assessment is served on her (s 99(1)); the tax remains due on the due date even while she appeals (s 103(1)).
Facts. Raj, a resident individual, was assessed tax of RM 10,000 for the year of assessment 2022. The due date for payment was 31 July 2023, but he paid the full amount on 15 August 2023.
The law. Section 103(3) states that if tax due and payable has not been paid by the due date, the unpaid amount is increased by a sum equal to ten per cent of the tax so unpaid.
Outcome. Raj must pay the original RM 10,000 plus an additional RM 1,000 (ten per cent of RM 10,000) as a penalty for late payment (s 103(3)).
Examples are simplified illustrations with invented names; real cases turn on their own facts.
Questions & answers
Who is resident in Malaysia for tax purposes?
An individual is resident for a basis year if he is in Malaysia for periods amounting to 182 days or more in that year (s 7(1)(a)), or for a shorter period linked to a period of 182 or more consecutive days in the preceding or following year, and in the other situations set out in s 7(1).
What types of income are subject to tax?
Tax is chargeable on income from business gains, disposal of capital assets, employment, dividends, interest, rents, royalties, pensions, and other gains or profits (s 4). This includes income accruing in or derived from Malaysia or received in Malaysia from outside (s 3).
When must I file my income tax return?
If you are carrying on a business, you must file by 30 June in the year following the year of assessment (s 77(1)(a)). In any other case, you must file by 30 April in the year following the year of assessment (s 77(1)(b)).
What happens if I fail to file my tax return?
Failing to furnish a return without reasonable excuse is an offence, punishable by a fine or imprisonment (s 112(1)). If you fail for two years or more, you may also face a special penalty equal to treble the tax charged (s 112(1A)).
How can I appeal against a tax assessment?
You may appeal to the Special Commissioners by giving written notice to the Director General within thirty days after the service of the notice of assessment (s 99(1)). The notice must state the grounds of appeal and contain required particulars (s 99(1)).
What is the penalty for late payment of tax?
If tax due and payable has not been paid by the due date, the unpaid amount is increased by a sum equal to ten per cent of the tax so unpaid (s 103(3)). This sum is recoverable as if it were tax due and payable under the Act (s 103(3)).
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Sources
Related
Real Property Gains Tax Act 1976Stamp Act 1949Employment law: your rights at workGetting legal help