Tax Payers Responsibility

Corporate businesses must follow the following procedure when filing their corporate tax.

1. The company must file the estimated tax payable either through e-Filing (e-CP204) or by submitting it to the LHDN Processing Centre. The timeline for a new company for filing the estimated tax is the 3 months after commencing its operation. On the other hand, already existing companies must file the estimated tax payable 30 days before the starting of a new year.

2. When it comes to paying the estimated tax, every corporate company should pay such tax through CP207 on or before the 10th of every month. A new company must pay this tax from the 6th month of the basis period. An existing company must pay this tax from the 2nd month of the basis period

3. Next, it’s time to furnish Form C either by using the e-Filing (e-C) facility or via LHDN Processing Centre

When to Pay Company Tax

Companies that are recently registered must file an estimation of payable tax within the 3 months. Furthermore, such a company should start paying monthly installments (by the 15th of each month) from the 6th month of the assessment year.

Once the assessment year ends, every company must file its tax through the e-filling portal. In case the payable tax is greater than what the company has paid under a previously estimated amount, the remaining balance must be paid. On the contrary, you can apply for a refund if the actual tax is lower than the estimated amount paid by your company.

The criterion for Sendirian Berhad (Sdn Bhd) companies with a paid-up capital of 2.5 million or less is different. In this situation, these companies are not bound to submit the estimated payable tax for the first 2 assessment years.
 

folder_open   Information on Taxes in Malaysia