To conduct business with a limited company, payment of CP204 is required.
What is CP204?
CP204 is a prepayment tax form used to submit an estimated tax amount for the next tax year of the company.
Who need to submit CP204?
According to Section 107C(7A) of the Income Tax Act, the following entities are required to submit CP204:
- Private Limited Companies (Sdn Bhd)
- Limited Liability Partnerships (LLP)/Limited Partnerships (PLT)
- Cooperatives
- Trust Bodies
Reporting Deadlines:
- Companies in operation must submit CP204 within 30 days before the commencement of the next tax year.
- Newly established companies must submit the CP204 for the first tax year within 3 months from the date of commencement of business.
Section 107C(3) of the ITA stipulates that when a company estimates the amount for the next tax year,
it must not be less than 85% of the tax amount for the previous tax year.
Tax Estimate Adjustment:
Companies can make adjustments by submitting CP204A, which can be done in the 6th month or 9th month of the fiscal year, or both:
Within the 6th month:
Adjustments made can choose to take effect from the 5th installment or the 6th installment.
Within the 9th month:
Adjustments made can choose to take effect from the 8th installment or the 9th installment.
All terms are subject to LHDN’s approval
