What is CP204 Estimation of Tax Payable?

Slide1.JPG

What is CP204 Estimation of Tax Payable?

What is CP204 Estimation of Tax Payable?

Overview

 Every companies (a company, limited liability partnership, trust body or co-operative society) are required to determine the estimated tax payable and submit by using CP204 to IRB.

 Key takeaway

You will understand:

1. What is CP204?

2. When is the due date for initial submission?

3. When to pay for the instalment?

4. How to determine the estimated tax payable for initial submission?
5. How to do for the revision of CP204?

6. What is the consequences for non-submission, late payment of CP204 and underestimated of tax estimation?

Summary of learning

 1. What is CP204?

CP204 is the prescribed form for initial submission for estimated tax payable.

CP204A is the prescribed form for revision of estimated tax payable.

2. When is the due date for initial submission?

For existing company

The tax estimate must be submitted not less than 30 days before the beginning of the basis period.

For example, if the Company’s basis period is from 01.01.2021 – 31.12.2021, the initial submission of CP204 will fall on November 2020.

For newly incorporate company

The tax estimate must be submitted within 3 months after the commencement of business.

3. When to pay for the instalment?

The instalment payment must be made before 15th of the second month of the basis period.

For example, if the Company’s basis period is from 01.01.2021 – 31.12.2021, the payment for first instalment must be made before 15.02.2021.

4.How to determine the estimate of tax payable for initial submission?

For existing company

The tax estimate must not be less than 85% of the revised tax estimate or tax estimate for the immediately preceding Year of Assessment.

For example, if the Company’s last CP204/CP204A is RM10,000, the tax estimate for initial submission must not be less than RM8,500.

5.How to do for the revision of CP204?

The company is allowed to do the revision of an estimate of tax payable on 6th month or 9th month or both by using the Revised Estimate of Tax Payable Form (CP204A) through the electronic medium.

6. What is the consequences for non-submission, late payment of CP204 and underestimated the tax estimation?

Non-submission of CP204

Under subsection 120(1)(f) of the Income Tax Act 1967, taxpayer is liable to a fine of RM200 – RM20,000 or to imprisonment for a term not exceeding six months or both.

Late payment of CP204

A 10% penalty will be imposed on the balance of unpaid tax payable which the company fails to pay the monthly instalment before 15th of the month.

Underestimated for tax estimation

If the tax payable exceeds the estimation by more than 30%, the difference is subjected to a 10% penalty.

Source

Notification of change of accounting period of a company/ limited liability partnership/ trust body/co-operative society  http://phl.hasil.gov.my/pdf/pdfam/PR_08_2019.pdf

Visit us

  • Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our external community for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Secretarial, Account/Payroll, Advisory)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.

#Thk

#KTP

#KTP lifestyle

#KTPcareers

#personaltax

#irb

#LHDN

 
 
taxKtp Ktpcp204, tax estimation