SERVICE TAX ACT 2018

SECTION 26 FURNISHING OF RETURNS AND PAYMENT OF SERVICE TAX DUE AND

PAYABLE
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26(1) [Furnishing of return]
Every taxable person shall, in respect of his taxable period, account for the service tax due in a return as
may be prescribed and the return shall be furnished to the Director General in the prescribed manner not
later than the last day of the month following the end of his taxable period to which the return relates.
26(2) [Furnishing of return with varied taxable period]
Where a taxable period has been varied under paragraph 25(3)(c) and notwithstanding subsection (1), the
return shall be furnished within thirty days from the end of the varied taxable period.
26(3) [Furnishing of return for deregistered person]
A registered person who ceases to be liable to be registered under section 18 or ceases to carry on business
of providing taxable services under section 19 shall, not later than thirty days after such cessation, or such
later date as the Director General may allow, furnish a return containing particulars as the Director General
may determine in respect of that part of the last taxable period during which the person was registered.
26(4) [Payment of tax due]
Any taxable person who is required to furnish a return under this section shall pay to the Director General the
amount of service tax due and payable by him in respect of the taxable period to which the return relates not
later than the last day on which he is required to furnish the return.
26(5) [Furnishing of return regardless of tax amount]
The return referred to in subsections (1), (2) and (3) shall be furnished whether or not there is service tax to
be paid.
26(6) [Failure to furnish return]
Any taxable person who—
(a) contravenes subsection (1), (2) or (3); or
(b) furnishes an incorrect return, commits an offence and shall, on conviction, be liable to a fine not
exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.
26(7) [Offence and penalty]
Where any service tax due and payable is not paid wholly or partly by any taxable person after the last day
on which it is due and payable under subsection (4) and no prosecution is instituted, the taxable person shall
pay—
(a) for the first thirty-day period that the service tax is not paid wholly or partly after the expiry of the period
specified under subsection (4), a penalty of ten percent of the amount of service tax which remains unpaid;
(b) for the second thirty-day period that the service tax is not paid wholly or partly after the expiry of the
period specified under subsection (4), an additional penalty of fifteen per cent of the amount of service tax
which remains unpaid; and
(c) for the third thirty-day period that the service tax is not paid wholly or partly after the expiry of the period
specified under subsection (4), an additional penalty of fifteen per cent of the amount of service tax which
remains unpaid.

History

Published by CCH
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 S. 26(8) renumbered as s. 26(7) by Act A1597 of 2019, s. 21(b), in force from 1 September 2019.

26(8) [Failure to pay tax due]

Any taxable person who fails to pay to the Director General the amount of service tax due and payable under
subsection (4) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand
ringgit or to imprisonment for a term not exceeding three years or to both.

History
S. 26(7) renumbered as s. 26(8) by Act A1597 of 2019, s. 21(a), in force from 1 September 2019.

26(9) [Prosecution of offence]

Subject to subsection (11), prosecution for the offence under subsection (8) may be instituted after the expiry
of the period specified in paragraph (7)(c).

History
S. 26(9) amended by Act A1597 of 2019, s. 21(c)(ii), in force from 1 September 2019, by substituting “paragraph (7)(c)” for
“paragraph (8)(c)”.
S. 26(9) amended by Act A1597 of 2019, s. 21(c)(i), in force from 1 September 2019, by substituting “subsection (8)” for “subsection
(7)”.

26(10) [Power of Court]

In addition to any fine imposed by the court under subsection (8), the court may order that any taxable
person who is convicted for the offence under subsection (8) to pay the penalty as specified in subsection (7)

History
S. 26(10) amended by Act A1597 of 2019, s. 21(d)(iii), in force from 1 September 2019, by substituting “subsection (7)” for
“subsection (8)”.
S. 26(10) amended by Act A1597 of 2019, s. 21(d)(ii), in force from 1 September 2019, by substituting “subsection (8)” for
“subsection (7)”.
S. 26(10) amended by Act A1597 of 2019, s. 21(d)(i), in force from 1 September 2019, by substituting “In addition to any fine
imposed by the court under subsection (8), the court” for “The court”.

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26(11) [No prosecution when amount paid within specified period]
No prosecution for the offence under subsection (8) shall be instituted against any taxable person who has
paid the amount of service tax due and payable, and the penalty specified under subsection (7) within the
period specified in subsection (7).

History
S. 26(11) amended by Act A1597 of 2019, s. 21(e)(ii), in force from 1 September 2019, by substituting “subsection (7)” for
“subsection (8)” wherever appearing.
S. 26(11) amended by Act A1597 of 2019, s. 21(e)(i), in force from 1 September 2019, by substituting “subsection (8)” for
“subsection (7)”.

26(12) [Exception to foreign registered person]

This section shall not apply to a foreign registered person.

History
S. 26(12) inserted by Act A1597 of 2019, s. 21(f), in force from 1 October 2019.

Published by CCH
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