Company Tax Estimation Guide
Company tax estimation is a crucial part of corporate tax compliance in Malaysia. It ensures that your company meets its tax obligations by estimating and paying income tax in advance.
Key Points About Tax Estimation
What is Tax Estimation?
Tax estimation involves predicting your company’s chargeable income and calculating the tax payable for the upcoming assessment year.
Who Needs to Submit?
All companies incorporated under the Companies Act 2016 and carrying on business or generating income are required to submit a tax estimate.
When to Submit?
The initial tax estimate must be submitted within 3 months from the start of the basis period (financial year).
Subsequent revisions are allowed in the 6th and/or 9th month of the basis period.
How to Submit the Tax Estimate?
Submissions can be made online via the LHDN e-CP204 system or manually by completing the CP204 form.
Penalties for Non-Compliance:
Failure to submit the tax estimate may result in a penalty of up to 10% of the tax payable.
Late payments can also attract additional penalties.
Steps to Calculate Tax Estimation
- Calculate your projected chargeable income.
- Apply the applicable corporate tax rate (currently 15%-24% for resident companies in Malaysia).
- Submit the calculated tax estimation using CP204.
How We Can Assist You
Why Choose Us for Tax Compliance?
Our professional team is here to ensure that your company remains compliant with LHDN regulations. We offer:
- Preparation and submission of tax estimation forms (CP204).
- Comprehensive guidance on tax revisions during the basis period.
- Support to minimize penalties and optimize tax planning.
Contact Us Today
Need help with tax estimation? Reach out to us at [email protected] and ensure seamless tax compliance.
FAQs on Tax Estimation
1. Can the tax estimate be revised?
Yes, companies can revise their tax estimate in the 6th and/or 9th month of the financial year.
2. What happens if I overestimate my taxes?
Overpayments can be carried forward or refunded by the LHDN upon proper application.
3. Is tax estimation applicable to dormant companies?
No, dormant companies are need to submit stating “ZERO” tax estimation.
