TAX ADVISORY, PLANNING & FILING

Registration for income tax file number can be done via online at https://mytax.hasil.gov.my/

Company is required to determine and submit in prescribed Form CP204 an estimate of its tax payable for a year assessment, 30 days before beginning of basis period.

i) Non-SME company (new) must submit CP204 within 3 months once started business.

ii) Tax estimation must be at least 85% from previous year’s estimate.

iii) SME is not required to submit CP204 within the first 2 years of assessment.

Revision is only allowed in the 6th or 9th month of the basis period of the business and must be submitted via e-CP204A. 

To notify IRB regarding changes in accounting period through the prescribed Form CP204B and must be submitted to the IRB no later than:

i) 30 days before the end of the new accounting period if the new accounts are less than 12 months and close before the end of original accounting period.

ii) 30 days before the end of the original accounting period if the new accounts are more than 12 months and close after the end of original accounting period.

Dormant companies are required to furnish Form E. Dormant mean:

i) Never commence operation since the date it was operation or established.

ii) Had previously in operation or carried on business but has now ceased operation or business.

Application must be written to the IRB branch which handle the tax file together with CP7 and supporting documents to apply for Surat Penyelesaian Cukai (SPC). 

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. Payment subject to Withholding Tax with different rate as per below:

i) Interest

ii) Royalty

iiii) Public entertainer

iv) Special classes of income

v) Contract payment

vi) Gain under section 4(f)

i) Personal income tax rate is applicable to resident individual following chargeable income as per below schedule in the Lembaga Hasil Dalam Negeri (LHDN) portal https://www.hasil.gov.my/en/individual/individual-life-cycle/how-to-declare-income/tax-rate/

ii) Non-resident individual (who was in Malaysia for less than 182 days) is taxed at a flat rate of 30% on total taxable income.

i) Resident companies: With paid-up capital of RM2.5 million or less, and gross income from business of not more than RM50 million. Tax rate on the first RM600,000 is 17% and in excess of RM600,000 is 24%.

ii) Non-resident companies: Tax rate is 24%

RM200 to RM20,000 or imprisonment for a term not exceeding 6 months or both under section 112(1), Income Tax Act 1967 of Malaysia.