CP204 is the estimated tax payable form that every Malaysian company must submit to LHDN (Inland Revenue Board). It determines your monthly tax instalment payments for the year. Getting it right avoids penalties.
Form CP204 is a declaration of estimated tax payable for a year of assessment. Companies must submit it before the start of their basis period. The estimated tax is then paid in 12 equal monthly instalments.
| Step | Description | Example |
|---|---|---|
| 1 | Estimate chargeable income for the year | RM800,000 |
| 2 | Compute tax using applicable rates | RM147,000 (SME rates) |
| 3 | Divide by 12 | RM12,250/month |
Monthly instalment = Estimated annual tax ÷ 12. Due on the 15th of each month, starting from the 2nd month of the basis period.
You can revise your CP204 estimate twice during the year:
Under s.107C(9) ITA 1967, if your actual tax payable exceeds the CP204 estimate by more than 30%, a penalty of 10% is imposed on the difference.
Example: CP204 estimate = RM100,000. Actual tax = RM150,000. Difference = RM50,000 (50% over estimate). Since 50% > 30%, penalty = 10% × RM50,000 = RM5,000.
| Item | Deadline | Penalty |
|---|---|---|
| CP204 submission | 30 days before basis period starts | Estimate deemed at previous year level |
| Monthly instalment | 15th of each month | 10% penalty on late payment |
| 6th month revision | 30 June | None |
| 9th month revision | 30 September | None |
| Form C (final return) | 7 months from FYE | s.112(3) — fine RM200-RM20,000 |
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Try Krofio — RM49/report →CP204 is the estimated tax payable form submitted to LHDN. Companies pay estimated tax in 12 monthly instalments based on this form.
If actual tax exceeds CP204 by more than 30%, a 10% penalty applies on the difference under s.107C(9) ITA 1967.
Yes, twice per year. 6th month revision by 30 June (up or down) and 9th month revision by 30 September (upward only).