Automatic generation of late payment penalties eligible for a full remission in the MySST system during the MCO period

This information below is provided to us by our member company EY

Following the Malaysian Government’s announcement that the Movement Control Order (“MCO”) period will be further extended to 12 May 2020, the Royal Malaysian Customs Department (“RMCD”) has announced that there will be a full remission of penalty available for specific indirect tax payments received by RMCD no later than 31 May 2020.

On 30 April 2020, RMCD announced that due to the unavoidable limitation of the MySST system, late payment penalties for the following taxable periods will continue to be automatically generated in the MySST system during the MCO period, in a manner as shown in the table below:

Taxable period Due date to submit return and payment Date of penalty generated
January – February 2020 31 March 2020 1 April 2020
February – March 2020 30 April 2020 1 May 2020

However, RMCD has clarified that a full remission for the above-mentioned late payment penalties will be made by the RMCD as soon as possible. This will also include any Bill of Demands (“BODs”) issued on penalties which are eligible for a full remission during the MCO period. In addition, we wish to highlight that an application for the remission of such penalties is not required.

The full and complete version of the announcement issued by the RMCD can be found in the MySST Portal