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CP204 and CP204A: A Guided Company Tax Estimator for Malaysian Companies

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CP204 and CP204A: A Guided Company Tax Estimator

The tax rules below were checked against HASiL's published guidance and the Finance Act 2025, including the YA2027 transition and the enacted YA2028 existing-company instalment start (see the linked primary sources under Sources). The estimator is illustrative and never files anything.

Estimated tax for companies — better known in Malaysia as CP204 — trips up many business owners. HASiL's forms sound intimidating, but the core rules are manageable once they are laid out month by month. Because each year of assessment can shift with Finance Act changes, this guide limits itself to what HASiL publishes today and links to the official pages for the fine print. For the current rates, see the HASiL company tax rate page as updated for the applicable year of assessment.

1. Who must submit CP204 (and who doesn't)

Companies, LLPs, trusts and cooperatives earning business income normally must estimate and remit tax in instalments under section 107C of the Income Tax Act 1967.

  • Existing operations (s.107C(2)): submit e-CP204 not later than 30 days before the basis period begins. HASiL's published date table leaves 30 clear days between the submission date and basis-period start (31 calendar days apart); for example, a 1 January start has a 1 December submission date in the preceding year. Public Ruling 4/2025, Example 4, gives a 1 July start and 31 May submission date.
  • New operations (s.107C(4)(a)): submit within three months from the actual date operations commence, not from an assumed basis-period date. HASiL's example uses commencement on 3 April 2021 and a 30 June 2021 submission date. The estimator asks for the actual commencement date and applies the calendar-month convention reflected in that worked example. The official materials reviewed do not spell out every day-of-month or public-holiday edge case; confirm unusual dates with HASiL or a tax adviser.
  • Dormant companies, or those which have not commenced business, are not required to submit.
  • Qualifying MSMEs may be exempt for the first two YAs through s.107C(4A) — however the company still notifies HASiL by submitting e-CP204 without a figure. The conditions are strict (Malaysian residency; paid-up capital ≤ RM2.5m; ≤ 20% foreign ownership; group capital ceiling) so get advice before relying on it. Start at the HASiL estimated tax page and read the MSME notes.

2. When the instalments are due

  • Existing company through YA2026: pay monthly from the 2nd month of the basis period (s.107C(5)); each instalment by the 15th of the calendar month (s.107C(12)). For a 12-month basis period starting 1 January, the usual schedule runs February through the following January.
  • YA2027 existing-company special rule: for YA2027 estimates under section 107C(2), section 15 of the Finance Act 2025 spreads the estimate over instalments equal to the number of basis-period months minus one, still starting from the second month. A calendar-year basis period (1 Jan 2027 – 31 Dec 2027) therefore has 11 instalments paid February 2027 through December 2027 — there is no instalment in January 2028.
  • Newly operating company (YA2027 included): instalments start in month 6 of the basis period (s.107C(6)). The YA2027 special rule above does not apply to companies first commencing operations — a 12-month basis period keeps 12 instalments from month 6 (e.g. January–December commencement pays June 2027 to May 2028).
  • Existing company from YA2028 onward: Finance Act 2025, section 14, amends s.107C(5) so instalments start from the 1st month of the basis period. This is enacted law and applies from YA2028 under section 3(5). A 1 January–31 December 2028 basis period therefore has 12 instalments from January to December 2028. This amendment changes the existing-company rule; newly operating companies remain on the separate month-6 rule in s.107C(6).
  • The estimate is divided by the number of instalments for the applicable year — not always 12. Each instalment is a whole Ringgit and the residual Ringgit is absorbed by the final instalment (HASiL's worked example: RM130,000 ÷ 12 means 11 × RM10,833 and a final instalment of RM10,837).

3. The 85% minimum estimate rule

Your CP204 figure for this year may not drop below 85% of last year's revised estimate (or the original, if never revised) from the second year of assessment onward (s.107C(3)). Going below invites a determined estimate (CP205) from the DGIR under s.107C(8). An estimator can help you check the floor; the underlying number stays your responsibility.

4. CP204A: revising the estimate mid-year

Revising after the basis period began happens through e-CP204A in the 6th, 9th or 11th month of the basis period (you may revise in any, any two, or all three of those opportunities). HASiL confirms the applicable revision months, but the statutory provision and official guidance cited here do not establish an exact last filing day within each month. Do not treat the last calendar day as a statutory deadline; confirm the precise cut-off in MyTax/e-Filing or directly with HASiL before filing. These are separate revision opportunities and you do not need to submit all three.

  • A revision in the 6th month takes effect from the 5th or 6th instalment (your choice in the e-form).
  • A revision in the 9th month takes effect from the 8th or 9th instalment.
  • The 11th month revision applies from the 11th instalment.
  • Everything left over is re-spread: revised estimate minus the instalments already determined, divided by the instalments remaining. HASiL's published example: original RM120,000 revised up to RM260,000 in month 6 leaves (RM260,000 − RM50,000) ÷ 7 = RM30,000 from instalment 6.
  • If a revised estimate falls below what's already been determined, the remaining instalments go to zero (HASiL's downward example).
  • These revision opportunities are not instalment payment due dates. Monthly CP204 instalments are separate payment obligations, generally due by the 15th of each calendar month under s.107C(12); see the applicable payment schedule above.

5. What happens if the estimate is off

Try a scenario: the interactive simulator lets you compare an original CP204 estimate, a newly calculated different amount, one month-6, month-9 or month-11 CP204A revision, or a DGIR CP205 deemed-revised estimate. A newly calculated tax amount is not the same thing as an original CP204 estimate submitted to HASiL; where no submitted estimate is provided, the simulator labels that fact and uses the calculated amount only for illustration. RM24,000 and RM3,685, for example, are different user inputs rather than two unexplained versions of the same estimate. Enter actual tax payable under the assessment (the Notice of Assessment) only when the relevant assessment is available; otherwise leave it blank. The s.107C(10) result is illustrative and separate from s.107C(9). A changed simulator amount replaces the simulator output rather than adding another full schedule, and is clearly marked as a simulation—not necessarily a submitted CP204A estimate. For CP205, follow the payment schedule directed by HASiL—the simulator does not reconstruct it. For a newly commencing company, the tax comparison is available, but the simulator does not infer which instalment a CP204A revision affects in its month-6-start schedule; obtain professional review. The tool does not submit CP204/CP204A or produce a final HASiL assessment.

The 85% minimum under s.107C(3) is a separate submission-stage test against the preceding YA’s revised/original estimate. It is not the later s.107C(10) underestimation tolerance. The s.107C(10) calculation uses actual tax payable under assessment and applies only to the difference beyond 30% of actual tax. Any s.107C(9) late-instalment increase is separate and is not added to the s.107C(10) figure. A separate consequence may apply under s.107C(10A) where no required estimate was furnished and its statutory conditions are met; this estimator does not determine whether that provision applies or calculate its increase. Seek professional confirmation for the taxpayer’s facts.

  • Instalment arrears: a 10% increase on the unpaid balance of the skipped instalment (s.107C(9)).
  • Underestimating (s.107C(10)): when actual tax payable under assessment exceeds the latest operative revised or deemed-revised estimate (or the original estimate if none) by more than 30% of actual tax, a 10% increase applies to the excess. HASiL's formula: [(actual tax − applicable estimate) − (30% × actual tax)] × 10%.
  • Incorrect returns carry their own penalties: separate schedule, so compare with counsel; our STS CKHT guide explains the RPGT version of this principle for property disposals.

6. Estimating the company tax: what goes in

The guided estimator on this page follows an illustrative pipeline: revenue → accounting expenses → estimated accounting profit → add-backs for non-deductible items → allowances → estimated chargeable income → tax. It is not a complete Form C computation; losses and many tax-specific adjustments require professional review. If the accounting period has changed, CP204B rules may apply; this estimator does not reconstruct the revised basis period or instalment schedule, so obtain professional review.

When may I use SME preferential rates?

Preferential tax rates are separate from the new-company flexibility to submit CP204 without an estimate under s.107C(4A). Selecting SME rates does not establish that separate instalment exemption.

For the preferential rates, HASiL Public Ruling 8/2025 requires the applicable conditions to be met, including that the company is resident and incorporated in Malaysia, paid-up ordinary share capital is no more than RM2.5 million at the beginning of the basis period, and gross income from this company's business sources is no more than RM50 million (do not combine related companies' business income). Related-company restrictions also apply. A related company for these tests has paid-up ordinary share capital exceeding RM2.5 million at the beginning of the basis period; use the Bank Negara Malaysia exchange rate at that date for a foreign-currency amount. The company does not qualify if more than 50% of its capital is owned directly or indirectly by such a related company; if it owns more than 50% of the related company; or if the same other company owns more than 50% of both. Exactly 50% does not exceed these thresholds. Trace direct and indirect ownership through intermediate companies to the ultimate holding company. From YA2024, more than 20% combined ownership by foreign-incorporated companies or non-Malaysian citizens, directly or indirectly, also disqualifies the company; exactly 20% does not exceed that limit. The special rates do not apply to business trusts or Securities Commission-approved asset-backed-securities special-purpose companies.

The estimator asks a short self-check and uses the standard 24% rate if an answer indicates a condition is not met or the ownership chain is uncertain. This is not a definitive tax determination. Ask a Malaysian tax adviser to review complex ownership structures. Its YA2027 14%/16%/24% tiers are Budget 2027 proposals, not enacted rates; its YA2028 15%/17%/24% tiers are planning assumptions, not confirmed future policy.

7. FAQs

Is CP204 mandatory every year for a growing company?

Yes, from the second YA onward — with the 107C(4A) MSME carve-out for the first two YAs of a qualifying new company.

Can I revise my CP204 estimate more than once?

Yes. A company may use one, two or all three opportunities: the 6th-month and 9th-month revisions, plus the 11th-month opportunity in the same basis period (HASiL lists all three). Remember the minimum-estimate rule ties your NEXT year's CP204 to the latest revised figure.

Does the estimator prepare my CP204?

No. It is a teaching tool with a month-by-month schedule so you can see what HASiL expects. Filing happens in the MyTax portal through your tax agent.

What if my profits drop this year?

The 6th/9th/11th-month e-CP204A revision mechanism is exactly for that, including e-CP204A's stop-payment behaviour below the amounts already due. Watch the 85% floor before you slash.

Where do the 24% and preferential rates come from?

The company tax rate table (HASiL) — standard 24% and, for qualifying SMEs, tiered rates on the official page. Nothing here replaces eligibility confirmation by a qualified adviser.

Sources

Last reviewed: 2026-10-31. The estimator is illustrative and does not constitute tax advice.

Need help preparing or revising your CP204 estimate? Our tax team can assist with your company's estimated tax payable, CP204 submission and CP204A revisions. Contact us before you file.

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