Tax Relief vs. Tax Deduction Explained
March 24, 2025
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:
- 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.
- 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.
- 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.
- 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.
- 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.
Key Documents Needed for Company Tax Filing:
To stay compliant, companies must keep proper documentation. Here’s a handy summary table:
| Category | Documents to Keep |
|---|---|
| Financial Records | Profit & Loss, Balance Sheet, Trial Balance |
| Income | Sales invoices, receipts, bank statements |
| Expenses | Purchase invoices, utility bills, payment vouchers |
| Payroll | Salary records, EPF/SOCSO/EIS contributions, PCB, EA forms |
| Tax Forms | CP204, CP204A, Form C, Form E |
| Withholding Tax | Records of payments to non-residents |
| Assets & Loans | Fixed asset register, loan agreements |
| Contracts | Tenancy, service, and business contracts |
| Others | Petty cash, inventory records, dividend vouchers |
Note: Be sure to store these documents for at least 7 years for audit purposes.
Enhance Your Company’s Tax Management with Worksy
It’s time to make tax season less stressful.
Worksy, our all-in-one HRMS platform, offers modules that help streamline documentation and compliance:
- Payroll Management – auto-generates PCB records and EA forms
- Leave & Claim Management – tracks deductible business expenses
- Document Hub – stores important files securely for tax season
By digitizing these processes, Worksy helps your company stay organised, compliant, and ready for any audit. Explore Worksy’s Payroll Solution now.
Filing company tax doesn’t have to be a daunting task. With the right knowledge and digital tools, you can simplify the entire process and stay ahead of tax obligations.
Check out our HRMS solutions by scheduling a FREE demo with us today!
