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.
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