TaxSavvyMY

First tax step for a new company with LHDN

My Sdn Bhd started trading this month. What is the first thing LHDN expects?

The situation

A new company must submit its first estimate of tax payable (CP204) within 3 months from the date operations begin, if the first basis period is at least 6 months. Instalments start from the 6th month.

The law

  • Sec 107C, Income Tax Act 1967: Company estimate of tax payable (CP204), minimum 85% rule, revisions and monthly instalments by the 15th

What it means for you

The rule gives new companies time to see their numbers before estimating. The estimate can be nil or low if you expect losses, but be realistic because under-estimation by more than 30% can lead to a penalty. Make sure the company has an income tax number on MyTax before the deadline.

What to do

  1. Confirm the date operations began.
  2. Register the company tax file on MyTax if not done.
  3. Prepare a simple 12-month profit forecast.
  4. File e-CP204 within 3 months.

We can do this for youIncorporate a Sdn Bhd and complete first-month set-up: MYR 900

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