What is CP204 Form? [Issue 2 of 2]
Amendment of Estimated Tax Payable (Form CP204A)
Companies are allowed to amend the tax estimates payable by submitting CP204A in either 6thor/and 9th month in the basis period for a year of assessment. Effective from year of assessment 2024, additional tax estimates payable is allow, which is in 11th month of the assessment.
Penalties for non-compliance and under estimation
1) If a company fails to pay the monthly instalment on the tax estimate by the due date, a late payment penalty of 10% will be imposed on the balance of the unpaid tax instalment for that month.
2) If the difference between the actual tax payable and the revised estimate, or the original estimate of tax payable (if no revised estimate is furnished), exceeds 30% of the actual tax payable, a 10% penalty will be imposed on that difference.
3) If the balance of tax payable is not settled by the due date, a 10% penalty will be levied on the outstanding amount.
Conclusion
Timely and accurate filing of Form CP204 is essential for businesses to meet their tax obligations and avoid penalties. It reinforces the broader economic principle that all entities, regardless of size, must contribute to the fiscal sustainability of the nation.
