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.

Tax