Tax Compliance Requirements - Important Filing / Furnishing / Payment Dates

Malaysia operates a self-assessment regime.

For tax purposes, companies may adopt their accounting year as the basis period for a year of assessment. Income tax is chargeable in the year of assessment on the income earned in the basis period for that year of assessment.

Companies must submit an estimate of their tax payable no later than 30 days before the beginning of their basis period. Companies which commence operations in a year of assessment have to furnish the estimate of tax payable to the IRBM within 3 months from the date of the commencement of operations.

The estimated tax is payable in 12 equal monthly instalments by the 15th day of each month beginning in the second month of the basis period. SMEs that begin their operations during a year of assessment are exempt from paying their tax by instalments in the year of assessment in which they commence business and in the immediately following year of assessment. They are required only to settle the tax due when they file their income tax returns. All companies may revise their estimate of tax payable in the sixth and/or ninth months of their basis period.

The estimated tax shall be payable in 12 equal monthly instalments, starting from the 2nd month of the basis / taxable period. Each instalment must be paid to the IRBM by the 15th day of each calendar month. In the event of default in payment, a 10% penalty will be imposed on the amount unpaid by the due date.

Any balance of income tax payable, net of instalments paid for the Year of Assessment, must be paid by the due date for the submission of the tax return. A penalty of 10% is imposed if any balance of tax is not paid by the due date and an additional penalty of 5% is added if any amount remains unpaid more than sixty days after the due date.

Companies must file their income tax returns return (prepared based on audited financial statements as required by Companies Act 2016) within 7 months from the end of their accounting period.

Estimates and revised estimates may only be filed electronically. The tax return must be filed electronically.

Responsibility Of Company

1. Furnish the estimated tax payable (CP204) via e-Filing (e-CP204) or to LHDNM Processing Centre

• New company : 3 months from the date of operation

• Existing company : 30 days before the beginning of new basis year

2. Pay the estimated tax payable by using CP207 on / before the 10th day of every month:

• New company : from the 6th month of the basis period

• Existing company : from the 2nd month of the basis period

3. Furnish Form C via e-Filing (e-C) or to LHDNM Processing Centre (Declare income and calculate tax payable)

4. Furnish Form R (Statement of Revised 108 Balance) via e-Filing (e-R) or to LHDNM Processing Centre

5. Pay the balance of tax payable (if any) by using CP207

If you would like to know more, please contact Bestar.