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.