What is CP204 Form? [Issue 1 of 2]
Introduction
Form CP204, is a crucial tax form in Malaysia used for estimating and paying corporate tax in advance. This form must be submitted by companies operating in Malaysia, except for those under the exempt category, like newly incorporated companies in their first year of operation.
Submission period of e-CP204 Form
Companies that are actively conducting business are required to submit their e-CP204 form at least 30 days before the start of the tax assessment year. For newly formed entities such as companies, cooperatives, trust bodies, and LLPs, which are entering their initial tax assessment year with a financial period of at least six months, there is a stipulation to submit the e-CP204 within three months from the start of their operations.
Minimum amount of Tax Estimate
For ongoing businesses, the minimum estimated tax for any given year should be no less than 85% of the previous year’s final estimated tax payment, unless there was an amendment made. This guideline ensures that companies consistently meet a substantial portion of their anticipated tax obligations based on historical data.
For newly established companies are guided to base their initial year’s tax estimates on the estimated profits. This initial estimate sets the groundwork for determining their tax commitments for the subsequent year, providing a consistent framework for these entities to engage with the tax system right from their inception.
Stay tune for the upcoming newsletter, we will share with you more on CP204 Form.
