In Malaysia, personal income tax and corporate income tax are two different types of taxation. Therefore, the methods and dates for filing and paying taxes for workers and companies are also different.
For migrant workers, they need to report their income tax and file a tax return with the Malaysian Inland Revenue Department from April 1 to 30 every year. When filing a tax return, you need to fill out a personal income tax form and pay the corresponding personal income tax. Personal income tax is calculated based on an individual's income, allowances and tax rates. It should be noted that if migrant workers have multiple incomes at the same time, they need to declare and pay taxes on all incomes.
For companies, they need to pay corporate income tax based on their turnover and profits. The filing and payment of corporate income tax is generally from June to August each year. Businesses need to fill out a corporate income tax form and pay the corresponding corporate income tax. If the company's total annual income does not exceed MYR 500,000, it can choose to pay corporate income tax at a fixed rate, otherwise it needs to pay corporate income tax based on the company's actual profits.
When filing tax returns, whether it is personal income tax or corporate income tax, you need to pay attention to the following points:
- Accurately report income and expenses. It is important to ensure that reported income and expenses are accurate and avoid underreporting or misreporting.
- Keep the necessary credentials. When filing tax returns, you need to provide corresponding certificates, such as income certificates, expenditure certificates, etc. Therefore, it is necessary to keep these documents properly before filing the tax return.
- Fill out the form as required. The declaration forms for personal income tax and corporate income tax are different, and corresponding forms need to be filled out according to regulations.
- Pay taxes. Appropriate taxes and fees need to be paid on time, or you may face fines and other legal consequences.
- Comply with tax laws. When filing tax returns, it is necessary to comply with the relevant provisions of the Malaysian tax law to avoid illegal acts.
If you do not report your personal or corporate income tax on time, you will face different consequences.
For personal income taxes, there are penalties, interest and possible legal consequences for failure to file or pay taxes on time. Specifically, the tax office can impose late fees and penalties on individuals who fail to file or pay taxes within the stipulated time. If individuals fail to fulfill their tax obligations, the tax bureau can also take coercive measures, such as freezing bank accounts or seizing property, to recover taxes.
For corporate income tax, there are also penalties and interest if you fail to file or pay taxes on time. In addition, if a company fails to pay income tax on time, the tax bureau can also take other coercive measures, such as freezing bank accounts, seizing property or forcing the company to liquidate through legal procedures.
Overall, failure to file personal or corporate income taxes on time can have adverse financial and legal consequences. To avoid these consequences, individuals and businesses should file, pay and comply with tax laws on time. If you encounter difficulties, you should contact the tax office as soon as possible and ask for help and advice.