The CP204 form is a prescribed form under the Income Tax Act that holds significant importance for businesses in Malaysia. Its purpose is to report estimated company tax payable in installments throughout the basis period.
Existing companies are mandated to make payments on the estimated tax payable in equal monthly installments, beginning from the second month of the basis period for a year of assessment.
As an example:
| Tax Estimate | RM18,000 |
| Monthly Installment Amount | RM18,000 / 12 months = RM1,500 |
For new companies, the payments only commence in the 6th month after being operational. Whilst businesses (Registered Companies, Limited Liability Partnerships, Trust Bodies and Cooperative Societies) which are dormant / not commenced operations are exempt from furnishing Form CP204.
The payment deadline for all companies falls on the 15th day of each month.
Once the actual tax payable of a company has been assessed, any balance outstanding (minus total installments paid) has to be paid within 7 months from the close of the accounting period or the last day of any approved extension period.
Need a quick and easy way to get your company tax estimate amount? Use our free CP204 company tax calculator for SMEs in Malaysia
Getting started
Have these information on hand to ease the payment process:
- Identification Type: Income Tax No.
- Tax Identification Number (TIN): CXXXXXXXXXX
- Payment Code: 086
- Assessment Year: 202X
- Number of Installments: 0X-12 (according to CP205 schedule)
- Tax Amount: RMXXX (according to CP205 schedule)
Recommended methods to make your CP204 payment online
To ease the payment process, LHDN has provided several online channels through which you can pay without leaving the comforts of the office / home:
- Internet banking of commercial banks
- VA number generated by e-TT system
Method 1 – Internet banking of commercial banks
Income Tax and Real Property Gains Tax (RPGT) can be paid via online banking at selected commercial banks which have been appointed as direct tax collection agents:
| Bank | Types of Payments | |
| Income Tax | RPGT | |
| Alliance Bank | Yes | Yes |
| CIMB Bank | Yes | Yes |
| Citibank | Yes(Corporate Tax only) | Yes(Corporate Tax only) |
| Hong Leong Bank | Yes | Yes |
| Maybank | Yes | Yes |
| Public Bank | Yes | Yes |
| RHB Bank | Yes | Yes |
| MBSB Bank | Yes | Yes |
| Bank Islam | Temporarily suspended due to enhancement process by bank | |
| Bank Simpanan Nasional | Temporarily suspended due to enhancement process by bank from 30/8/2023 | |
Note: Keep your acknowledgement receipt as proof of payment.
Method 2 – VA number generated by e-TT system
Effective 1 April 2022, taxpayers who wish to make payments through Telegraphic Transfer (TT), Electronic Funds Transfer and Interbank GIRO from within and outside Malaysia are required to obtain a Virtual Account (VA) number.
A VA number is a 14-digit number that acts as the unique reference identification for a payment transaction. It’s identical in format to a bank account number and compulsory to be provided to the receiving bank as the paying account number. The payment will then be identified as an income tax payment and subsequently recorded as payment received on the bank statement report (BSR) submitted to LHDN.
The VA number generated by the e-TT system can be used to pay:
- Income Tax
- Petroleum Income Tax
- Tax Compound
- Income Tax by Foreign Artists
- Withholding Tax (One Payer and One Payee only)
Via:
- Internet banking portal: IBG/RENTAS/ Telegraphic Transfer/ Electronic Fund Transfer
- Payment at the bank counter: IBG/RENTAS/ Telegraphic Transfer/ Fund Transfer method only. (Payment by cheque using the VA numbers is not accepted at the bank counter).
- Automated Teller Machine (ATM) > IBG.
Here’s a handy step-by-step guide to generate your VA number: https://www.facebook.com/photo?fbid=1845425129149170&set=pcb.1845430332481983
ByrHasil (Pending Company Bill No. implementation)
LHDN’s e-payment portal traditionally enables taxpayers to pay income tax through the FPX gateway. With effect 1 January 2023, LHDN switched to Bill Numbers as a mandatory reference for all direct tax payments except for Monthly Tax Deduction (MTD) and Stamp Duty.
However, Bill Number availability for companies is currently pending LHDN’s update. The usage of TIN as a payment reference is still allowed during the transition period until further notice.
LHDN has also temporarily stopped accepting tax payments using credit cards on ByrHASiL effective 1 October 2022 until further notice.
Over the counter methods to make your CP204 payment
If you prefer to complete the payment process in person, you can choose from the options: below:
- LHDN Revenue Management Centres
- Selected commercial banks
Method 1 – LHDN Revenue Management Centres
In addition to cash and bank drafts, payments by credit / debit card can be made at LHDN Revenue Management Centres in Kuala Lumpur, Kota Kinabalu and Kuching for selected categories:
| Payment Type (Using Bill Number/TIN) | Payment Medium |
| Real Property Gain Tax (RPGT) – 3% remittance by acquirer | CashBank Draft |
| Foreign artist / Public Entertainer (income tax) | CashBank Draft |
| Withholding Tax | CashBank Draft |
| Compound | CashBank Draft |
| Income Tax | Credit/Debit Cards issued in Malaysia only |
Method 2 – Selected commercial banks
Tax payments can also be made at the following banks nationwide:
| Agent Bank | Type of Services | Payment Type | Charge Imposed | Payment Reference |
| Public Bank | Income Tax & Real Property Gains Tax (RPGT) | Cash | RM2.00 | Tax Identification Number (TIN) |
| Affin Bank | IBG (Current Account) | No Charges | Tax Identification Number (TIN) | |
| Maybank | Cash | RM1.00 | Bill Number | |
| CIMB Bank | Cash | No Charges | Bill Number – Starting 16th August 2023 | |
| IBG (Current Account) | ||||
| Pos Malaysia | Cash | No Charges | Tax Identification Number (TIN) |
Note:
- Be prepared for certain fees to be imposed on the payments made at bank service counters.
- Complete the bank-in slip provided with your prepared information (refer to the beginning of this article) for payment purposes.
- Keep the copy as payment proof.
Payment by Post / Courier No Longer Accepted
Effective January 1st, 2021, LHDN no longer accepts income tax payments by cheque sent through the mail or courier services. This change in policy aims to encourage the use of e-payment methods provided by the LHDN and to avoid issues with bounced / dishonored cheques.