Tax Payment

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	Tax Estimation	Monthly Installments
12 months	RM12,000.00	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

Information on Taxes in Malaysia