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CP204 Tax Estimate Guide for Malaysian Companies

CP204 is the estimated tax payable submitted to LHDN. It is not the year-end tax return; it is the basis for monthly tax instalments during the year.

ImportantLHDN's Tax Estimation page states that companies, LLPs, trusts and cooperatives must submit CP204 annually and pay estimated tax according to the prescribed schedule.
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01

When a new company submits CP204

According to LHDN, a newly established company with a first basis period of not less than 6 months submits e-CP204 within 3 months from the commencement of business. From the second year of assessment onwards, it is generally submitted not later than 30 days before the basis period begins.

02

How monthly instalments start

Operating companies generally pay the estimated tax in equal monthly instalments. LHDN explains that instalments usually start from the second month of the basis period for the relevant year of assessment.

Submissione-CP204Submit estimated tax payable.Observe deadlines

03

Can CP204 be revised?

LHDN states that CP204 may be revised through CP204A in the 6th, 9th or 11th month of the basis period. Remaining instalments are then adjusted based on the revised estimate.

04

Risk of not submitting CP204

If CP204 is not submitted, the DGIR may issue CP205 to determine the estimate. Prosecution may also apply, with fines from RM200 to RM20,000, imprisonment not exceeding 6 months, or both.

05

Official sources and disclaimer

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