Self-assessment
Introduction
 Companies are put on self - Assessment with
effect from YA 2001. The refers to basis
period for the financial year ending 2001.
The Finance (No. 2) Act 2000 inserted s 21A
requiring the company to have all its sources
of income (business and investment income)
to be assessed in accordance with its
financial period. The would further facilitate
the estimate of income tax payable for YA
2001 and its subsequent YAs.
Administration
 The e-CP 204 can be filled in online via
https://ez.hasil.gov.my/.
The following information is needed in e-
CP 204:
a) name and address;
b) income tax reference number
c) registration number of company
d) tax estimates (current YA)
e) accounting year end and basis period
f) commencement date of operation
(new company);
g) computation of monthly instalments;
h) withholding tax obligations (only for
non-resident company) and
i) YA
Non-submission of tax estimates is an
offence under s 120(1)(f). Upon
conviction, a company shall be liable to;
(a) RM200 ≤ fine ≤ RM20,000; or
(b) Imprisonment for a term ≤ 6 month, or
(c) Both.
 every Co., LLP, trust body or co – operative
DG’s practice
society is required to furnish an estimate of
income tax payable for a YA in a ‘prescribed
 The IRB can on its discretion fix an
form’ (CP 204) not > 30 days before the
beginning of the basis period [s 107C(2)].
 With effect from YA 2006, s 107C(3), the
estimate of tax payable for a YA must > 85% of
the estimate or revised estimate of the income
tax payable for the immediate preceding YA.
SELF ASSESSMENT FOR COMPANY
Revision of estimate [s 107C(7)]
 In a self-assessment regime, a Co., trust body or
co-operative society is expected to pay the
appropriate tax in the current year.
 Penalty will be imposed if the difference between
tax estimate & actual income tax payable exceeds
the 30% margin of error. To avoid such penalty,
revision of estimates is essential.
 A Co., LLP, trust body or co –operative society
may revise the estimate of income tax payable,
submitted via CP 204A, in 6 month/ 9 month/ in
both the month of the BP for a YA. The tax
payable for the remaining months shall be
revised upward or downward accordingly.
E-notification [s 107C(7A)]
 A Co. shall furnish CP 204/ CP 204A of its income
tax payable by way of an electronic medium/
electronic transmission.
 LLP, trust and co-operative society will submit
their tax estimates and revised estimates via e-
filing with effect from YA 2019.
estimated tax payable and issued CP
205 to a taxpayer informing on the
estimated tax to be paid for that
particular YA.
Payment of monthly tax
 Upon receiving the Form CP 204
 the tax authorities will issue a
notice of payment (CP 205) & a 12
monthly payment slips (CP 207),
 with the relevant information of the
companies.
 It done before the commencement
of the beginning of the basis period.
 The monthly income tax payment by
the company must be accompanied
by the payment slip. To ensure that
the amount of tax payable can be
credited to the appropriate
accounts.
 Every company, trust body or co –
operative society (taxpayer) is
required to pay the tax in an = 12
monthly instalments. If taxpayer
does not have a 12-month-accounts
for a YA, then the estimated tax
payable for that year will be ÷ by the
no. of months of that YA.
 the monthly installment is due on
the 10th of every month.
Penalties on underestimates of income tax payable
[s 107C(10)]
 A company is given 2 opportunities to revise its
estimate.
 In the 6 month, 9 month/ in both the month of
the basis period.
 10% penalty will be imposed on the excess of
30% difference between the original estimate
(or revised estimates) & the actual tax payable
upon the submission of the return.
 The IRB in MIA/MICPA dialogue held on 30 Sept
2002 requested companies to voluntarily remit
the 10% penalty due, when submitting their tax
returns as the submission of return is a deemed
notice of assessment.
Original estimates
 No amendment to the estimates of tax for a
particular YA.
 A company is obliged to revise upward either in
the 6th/ the 9th month to reflect the actual
possible tax payable for that YA.
Submission of return
 Submitted within 7 months from the closing
date of the Co.’s year end accounts. [s 77A(1)]
Notice of assessment
 The DG is empowered under s 90(1) of the Act to
deem to have made an assessment on the
chargeable income as shown in the return on the
day the return is submitted to the Pusat
Pemprosesan. He is not required to do anything
further.
 The right to appeal is within 30 days of the making
an assessment.
Amendment of return (s 77B)
 Taxpayer is allowed to amend their tax return
within 6 months from the date of submission
of such tax return to the IRB (due date).
 The amended return shall specify:
(a) The additional amount of chargeable income;
(b) The additional amount of income tax payable
(c) The particulars
(d) The late payment penalty.
 Taxpayer is allowed to amend their return
once only
 The submission of the amended return is
deemed as notice of assessment. Any tax and
penalty shall be due and payable to the tax
authorities.
SELF
ASSESSMENT
Final payment of income tax
 The difference between the income tax payable
as in the tax return and the instalments paid is
due and payable on the last day of the seventh
month following the close of the accounting
period.
 The final balance needs to be settled in the 7
month from accounting year-end (such date) in
order to avoid the monetary penalty of 10% plus
5%.
Penalties on monthly instalment
 Due date for the monthly tax instalment & its
subsequent years is on the 15th of each month.
 If any instalment is not paid by the 15 th, the
amount unpaid will be increased by a sum of
10% [s 107C(9)].
 Tax estimates

SME company is required to submit the CP 204 to IRB but

is not required to provide amount of estimates in income
tax payable.

The paid up capital of ≤ RM2.5 million must be maintained

for 3 YAs, commencing from the year in operation.

Commencement of new company (paid up capital at the

beginning YA > RM2.5 million ) [s 107C(4)]

In the case that a company commences business in a YA,

the company is required:

SELF ASSESSMENT
Commencement of business [s 107C(4A)]
Where a SME company first commences business
operation in a YA, the Co. is not required to:
 to furnish tax estimate via CP 204, 3 months from the
date commencement. The number of monthly
instalment is equal to the length of its basis period
and it will commence in the 6 month of that basis
period.

a) estimate income tax payable to the tax

authorities;
b) pay monthly income tax payable on the 15th
of each month
c) For the YA and the immediately following YA.

If there is no basis period for:

a) that YA and the immediate following YA,

then no estimates needed for that YA and the

immediate 2 following YAs. The Co. is only having
advantage for not providing estimate for one YA

SME means a resident company incorporated in

Malaysia w/ a paid up capital RM2.5M & less at
the beginning of both the YAs.