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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:
 

   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

 

 

 

 
 
 
By which the information in this website is subject to change at short notice and viewers are urged to verify information on which they're relying with the relevant authorities.
We cannot accept any responsibility for any loss or inconvenience to any person as a result of information contained above.
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