Estimated taxable amount
Rising Global Consultants
Self-assessment system
Since 2008, SMEs in their first year of operation are not required to submit estimated tax payable for the first assessment year, and they are exempt from installment payments for the following two years. Starting from 2014, new companies without a basis period in their first and second year assessments are also not required to submit tax estimates for two years
Under the self-assessment system, companies must submit their annual tax estimates (Form CP204) 30 days before the start of the basis period. For newly established companies, CP204 must be submitted within three months of starting operations. For instance, if the basis period is from January 1 to December 31, 2024, CP204 must be submitted by November 30, 2023
An SME is defined as a Malaysian resident company with a paid-up capital not exceeding RM 2.5 million at the start of the basis period, and the shareholding structure must meet the following conditions:
- No more than 50% is directly or indirectly held by a related company
- No more than 50% is held by the company first mentioned
- No more than 20% of ordinary shares are held by non-Malaysian companies or non-citizens
Additionally, the estimated tax amount must not be less than 85% of the revised estimate from the previous year or based on the tax payable from the prior year
Revised estimated tax payable
The submission of revised estimated tax payable (CP204A) can be made during the sixth and ninth months of the basis period
Please note that if the actual tax payable for a specific tax year exceeds the estimated amount by more than 30%, a 10% penalty will be imposed on the difference. If no estimated tax amount is provided, the tax payable will be directly increased by a 10% penalty
For example, if the final tax payable is RM 1,000,000 and the estimated tax was RM 300,000, the excess amount will be subject to a 10% penalty
Welcome to contact us
Phone Number: +60 3-8682 1802 | Email: officer@rising.com.my