Tax Estimation and Submission of Form CP204
Pursuant to subsection 107C (7A) of the ITA:
(i) Companies are required to submit Form CP204 by e-Filing from the Year of Assessment 2018.
(ii) Trust bodies, cooperatives and Limited Liability Partnerships (LLPs) are required to submit Form CP204 by e-Filing from the Year of Assessment 2019.
Submission period of Form CP204
Company in operation:
Under subsection 107C (2) of the ITA 1967, companies, cooperatives, trust bodies and LLPs in operation must submit e-CP204 not later than 30 days before the commencement of the basis period for a year of assessment.
New companies operating:
Under paragraph 107C (4) (a) of the ITA 1967, for companies, cooperatives, trust bodies and LLPs that have just commenced operations and have a first basis period for a year of assessment of not less than six (6) months, e-CP204 must be submitted in a period of three (3) months from the date of commencement of operations of companies, cooperatives, trust bodies and LLPs.
Minimum amount of Tax Estimation
Subsection 107C (3) of the ITA provides that the minimum amount of tax estimate for a year of assessment shall not less than 85% of the amount of the amendment of tax estimate or the tax estimate amount (if no amendment of tax estimate is submitted) for the immediate preceding year of assessment.
Companies, trust bodies, cooperatives and LLPs that have just started operations can determine the estimated tax payable for the first year of assessment according to the company’s estimated profit. The estimated tax payable for the first year of assessment will be the basis for determining the estimated tax for the following year of assessment.
Amendment of Estimated Tax Payable (Form CP204A)
Companies, cooperatives, trust bodies and LLPs are allowed to amend the tax estimates payable by submitting e-CP204A.
Form CP204 for a year of assessment can be amended in the 6th or 9th month or both in the basis period for a year of assessment:
(i) If the amendment is made within the 6th month, the instalment of the amendment in effect may be selected starting from the 5th or 6th instalment.
(ii) If the amendment is made in the 9th month, the instalment of the amendment in effect can be selected starting from the 8th or 9th instalment.
Determination of the Amended Instalment Amount
The balance of the tax instalment payable after the amendment will be adjusted using the following approach:
(i) If the amendment of the tax estimate exceeds the amount of instalments that should be paid, the balance of the estimated tax payable must be paid in instalments according to the remaining number of instalments available.
(ii) If the amendment to the tax estimate is less than the amount of instalments that should have been paid, the termination of instalment payment for the following month can be done.
Instalment Payment CP204
Registered Companies, Limited Liability Partnerships, Trust Bodies and Cooperative Societies which are dormant and/or have not commenced business operation are not required to furnish tax estimate (Form CP204).
For existing companies, the estimated tax payable has to be paid in equal monthly instalments beginning from the second month of the basis period for a year of assessment.
For new companies, instalment payments will commence in the 6th month of the basis period for the year of assessment i.e. Payable in the 6th month after the company commences operations.
All companies required to pay their monthly instalment by the 15th day of each month.
Balance of Tax Payment
After the actual tax payable of a company been assessed, the balance of tax payable (if any) after deducting total instalments paid on the tax estimate, has to be paid within 7 months from the close of the accounting period or the last day of any allowed extension period.
Penalty
If a company fails to pay the monthly instalment on the tax estimate by the stipulated date, a late payment penalty of 10% will be imposed on the balance of tax instalment not paid for the month.
If the difference between the actual tax payable and the revised estimate or the original estimate of tax payable (if no revised estimate furnished) is more than 30 % of the actual tax payable, a 10% increase will be imposed on that difference.
Penalty for Late Payment
If the balance of tax payable is not paid by the due date, a 10% penalty will be imposed on the outstanding amount.
Appeal on Penalty
A company disagree with the imposition of late payment penalty may within 30 days of the issuance of statement of account, submit a written appeal to the relevant HASiL Office (Collections Unit).
Company will still be required to pay the tax liability even if the company submit an appeal against an assessment.
Payment Method
The e-payment portal at IRBM website enables taxpayer to pay income tax through FPX gateway. User need to register for internet banking service with any commercial banks listed as FPX associate.
Payment can be made online at IRBM website www.hasil.gov.my by clicking ‘Perkhidmatan ezHasil’ > ‘ByrHASiL’ using Bill Number or TIN as payment reference.
For other payment method can refer to link as follow:
https://www.hasil.gov.my/en/company/tax-payment/payment-method/
Please do not hesitate to contact us if any queries.
Thank you.
