Private Limited Company

Corporate income tax in Malaysia is a direct tax paid to the government imposed on both resident and non-resident companies that receive income from Malaysia. The corporate income tax rate varies based on the type of company.

Tax Rate

Form C submission deadline

Companies in Malaysia must submit the corporate income tax return within seven months of closing the accounts. Tax payable must be paid by the last day of the seventh month from closing the accounts.

Tax estimation (Form CP204)

Pursuant to subsection 107C (7A) of the ITA:

Companies are required to submit Form CP204 by e-Filing from the Year of Assessment 2018.

a) Company in operation:

Under subsection 107C (2) of the ITA 1967, companies, cooperatives, trust bodies and LLPs in operation must submit e-CP204 not later than 30 days before the commencement of the basis period for a year of assessment.

b) New companies operating:

Under paragraph 107C (4) (a) of the ITA 1967, for companies, cooperatives, trust bodies and LLPs that have just commenced operations and have a first basis period for a year of assessment of not less than six (6) months, e-CP204 must be submitted in a period of three (3) months from the date of commencement of operations of companies, cooperatives, trust bodies and LLPs.

• Minimum amount of Tax Estimate

Subsection 107C (3) of the ITA provides that the minimum amount of tax estimate for a year of assessment shall not less than 85% of the amount of the amendment of tax estimate or the tax estimate amount (if no amendment of tax estimate is submitted) for the immediate preceding year of assessment.

Companies, trust bodies, cooperatives and LLPs that have just started operations can determine the estimated tax payable for the first year of assessment according to the company’s estimated profit. The estimated tax payable for the first year of assessment will be the basis for determining the estimated tax for the following year of assessment.

• Amendment of Estimated Tax Payable (Form CP204A)

Companies, cooperatives, trust bodies and LLPs are allowed to amend the tax estimates payable by submitting e-CP204A.

Form CP204 for a year of assessment can be amended in the 6th or 9th month or both in the basis period for a year of assessment:

i) If the amendment is made within the 6th month, the instalment of the amendment in effect may be selected starting from the 5th or 6th instalment.

ii) If the amendment is made in the 9th month, the instalment of the amendment in effect can be selected starting from the 8th or 9th instalment.