Sales and Service Tax (SST) Penalties and Offences in Malaysia

SST late payment penalty on the amount of sale and service tax not paid is

  • 10% on first 30 days periods
  • 15% on second 30 days period
  • 15% on third 30 days period
  • Maximum penalty of 40% after 90 days
 

Sales Tax Evasion penalty on offences

First offence – either or both

  • Fine with minimum 10 times Sales Tax amount and maximum 20 times Sales Tax amount
  • Impresonment not exceeding 5 years

Second offence – either or both

Fine with minimum 20 times Sales Tax amount and maximum 40 times Sales Tax amount
Impresonment not exceeding 7 years
 
Compound by Customs shall not exceeding 50% of maximum fine.