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Installment Payment
CP204
For existing companies, the estimated tax payable has to be paid in
equal monthly installments beginning from the second month of the basis
period for a year of assessment.
Example:
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Total
months in the basis period: |
12 months |
|
Tax
Estimation: |
RM12,000.00 |
|
Monthly Installments: |
RM12,000 / 12 =
RM1000.00 |
For new companies, installment for tax payments must commence in the 6th
month of the basis period for the year of assessment i.e. payable in the
6th month after the company commences operations. A company is required
to pay the installment of the estimated tax by the 10th day of each
month.
Balance of Tax Payment
When a company has determined its actual tax payable, balance of tax
which is the actual tax payable after deducting total installments on
the tax estimate, has to be paid within 7 months from the close of the
accounting period. Please use the CP207 Form payment slip which is
provided together with the C Form to make payment.
Penalty Under Installment Scheme
a. If a company fails to pay the monthly installment on the tax estimate
by the stipulated date, a late payment penalty of 10% will be imposed on
the balance of tax installment not paid for the month.
b. If the difference between the actual tax payable and the estimated
tax payable (if the revised estimate is not furnished) is more than 30 %
of the actual tax payable, a 10% increase in tax will be imposed on that
difference.
The formula for calculating the amount of tax to be increased is as
follows:
Amount of tax to be increased = {(AT-ET) - (30% x AT)} x 10%
where:
AT: actual tax payable
ET: revised estimated tax payable or estimated tax payable (if no
revised
estimate is furnished)
Penalty for Late Payment
If the balance of tax payable is not paid by the due date, a penalty of
10% will be imposed on the outstanding amount. If the tax payable and
penalty is still outstanding within 60 days from the due date, an
additional penalty of 5% will be imposed on the tax and penalty
outstanding.
Appeal on Penalty
An appeal in writing within 30 days from the statement of account can be
submitted to the relevant branch (Collections Unit), if the company does
not agree with the late payment penalty imposed.
The company has to pay its tax liability first irrespective of any
appeal.
Mode of Payment
Payment at IRBM
Payment Counters
Payment by Post
Payment at Bank
Payment via Internet
Payment from
Overseas
Payment by
Installments
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