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Filing company tax in Malaysia is a legal obligation for all registered businesses. Whether you’re running an SME or managing a growing enterprise, understanding the process and requirements can help you avoid costly penalties and optimize your business’s financial health.

In this guide, we break down how Malaysian companies declare and file taxes, essential documents you’ll need, and how a digital solution like Worksy can support smarter tax management for your company.

5 Steps to Filing Company Tax in Malaysia:

1. Register with LHDN: Newly incorporated companies must register with the Inland Revenue Board of Malaysia (LHDN) for tax purposes. This is typically done shortly after your SSM registration.
2. Submit Estimated Tax (CP204): Within 30 days before the start of your company’s financial year, you must submit Form CP204, an estimate of the tax you expect to pay. Newly formed companies have a 3-month grace period from the start of operations.
3. Pay Monthly Tax Instalments: Companies pay their estimated tax in 12 monthly instalments using Form CP204. This helps manage cash flow and avoids large-sum payments at year-end.
4. File Annual Tax Return (Form C): You must file Form C within 7 months after your company’s financial year-end. This includes reporting actual income, expenses, and final tax liability.
5. Make Final Payment: If your actual tax is higher than the estimated payments, you’ll need to settle the balance when filing Form C.

*Note: According to SQL’s article, The adjustment form for CP204 is called the CP204A form. This form is used to amend or revise the amount of the estimated tax payable declared in CP204.