Understanding Corporate Tax and Important Deadlines

After your company is incorporated, you should look into tax compliance matters and some important datelines in order to run your business smoothly and legally. The followings are important deadlines and all you need to know about Corporate Tax payment.

What is Corporate Tax payment

Under Income Tax Act 1967, corporate tax is charged to all existing companies that registered in Malaysia for chargeable income acquired from Malaysia that includes business profits, dividends, and other income. 

Submission of estimated tax (Form CP204 and CP204A)
New company: 3 months from the start date of operation
Existing company: 30 days before the start of new basis year
Where to submit: Via e-Filing or LHDN Processing Centre

You may revise your tax estimate during the 6th and 9th month period.

Submission of Employer Tax Return (Form E)

Deadline: By 31 March of following calendar year (e.g. 31 March)
Information to declare in Form E:

  • Employer’s (company’s) details
  • Employees remuneration information(i.e. salaries, wages, allowance, incentives & etc.)

Submission of corporate tax return (Form C)

Deadline: Within 7 months after the assessment year ends

Form C - is the Company corporate tax return where it calculates the chargeable income and income tax payable of the Company.

There might be a difference in the amount of the estimated tax payable and the actual tax payable. Hence, if the actual tax payable greater than estimated amount after the assessment year ends, the balance of year actual tax payable must be paid.

In contrast, you can request for a refund if the actual tax payable is lower than the estimated amount and it can be done through the submission of tax return.

Submission of withholding tax (CP37)
Withholding tax is an amount withheld by the party making payment (payer) on income earned by a non-resident (payee) and paid to the Inland Revenue Board of Malaysia.

A Company must submit the CP37 IRB within thirty days of the payment made.

Disclaimer: The Malaysia corporate tax calculator is developed for tax estimation based on the prevailing tax laws and regulations at the time of development. Please seek proper tax consultation for your tax affairs. We do not accept any legal liability or claim for the use of the tax calculator

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