Tax
Legal Obligations under the Income Tax Act 1967
Under the Income Tax Act 1967, companies in Malaysia are subject to a series of statutory tax obligations that fall under specific filing, payment, and recordkeeping requirements.
A. Companies / LLPs / Partnerships
Obligation | Form / Action | Details | Legal Reference | |
File Tax Return | Company | Form C | Must be filed with audited accounts within 7 months of FY end | Income Tax Act 1967, Section 77A(1) |
LLP | Form PT | |||
Partnership | Form P | |||
Submit Tax Estimates | CP204 | Submit estimate of tax payable within 30 days of basis period start | Income Tax (Estimate of Tax Payable) Rules 1997, Rule 3 | |
Amend Tax Estimates | CP204A | Optional revision in the 6th, 9th and 11th month of basis period | Same Rules, Rule 5 & 6 | |
Monthly Tax Installments | Based on CP204 | Pay monthly based on submitted tax estimates | Same Rules, Rule 11 | |
Final Tax Payment | Upon Final Tax Return | Balance of tax due upon final return submission | Income Tax Act 1967, Section 103(1) | |
Keep Records | — | Maintain all records for 7 years, must enable accurate tax assessment | Income Tax Act 1967, Section 82(1) |
B. Employers
Obligation | Form / Action | Details | Legal Reference |
Monthly Tax Deduction | PCB / MTD | Deduct and remit employee tax monthly | Income Tax (Deduction from Remuneration) Rules 1994, Rule 3 |
Employer Return | Form E | Annual employer declaration (to LHDN by 31 March) | Income Tax Rules, Rule 18 (via Form E filing requirements) |
Employee Statement | Form EA | Statement of remuneration and benefits to employees | LHDN Employer Responsibilities Guide (based on PCB Rules) |
Commission Reporting | CP58 | For agents receiving >RM5,000 commission | LHDN Public Ruling No. 1/2011 (Remuneration not under employment) |
C. Withholding Tax (for Payments to Non-Residents)
Type of Payment | Applicable Section | Details |
Royalties, Interest, Technical Fees | Income Tax Act 1967, Sections 109 & 109B | Withhold tax at applicable rates before payment to non-residents |
Special Classes of Income | Income Tax Act 1967, Section 109B(1)(f) | Includes contractors, consultants, trainers—subject to WHT |
D. Transfer Pricing Compliance (if applicable)
Requirement | Trigger | Details | Legal Reference |
Prepare TP Documentation | Gross income > RM25mil & RPT > RM15mil | Required for companies with significant related-party transactions | Income Tax (Transfer Pricing) Rules 2012, Rule 3 |
Maintain Contemporaneous Records | All companies with controlled transactions | Must be ready by tax filing due date | TP Rules 2012, Rule 4 |
Submit upon LHDN request | — | Must be submitted within 14 days of request | TP Rules 2012, Rule 6 |
How This Affects Your Business
Malaysian tax obligations are multi-layered, and non-compliance—whether from delays, oversight, or confusion—can lead to audits, penalties, or interest charges. Many companies struggle to:
- Track CP204 and CP204A deadlines correctly,
- Keep up with changes to withholding tax and transfer pricing thresholds,
- Prepare clean Form C submissions with audited accounts,
- Maintain compliant records for the full 7-year requirement.
How We Can Help
We can help you meet every requirement confidently—from core tax filing to specialist compliance documentation.
Our tax services include:
- Corporate Tax Filing (Form C)
Preparation and submission of Form C and related documentation, ensuring accuracy and timeliness. - CP204 & CP204A Management
We help you estimate, revise, and monitor your tax obligations throughout the basis period. - Recordkeeping Reviews
We assess your record retention practices to ensure compliance with Section 82(1). - Employer Tax Support
From PCB deductions to Form E & EA submissions, we help you fulfill your responsibilities as an employer.