When Is Corporate Tax Payable in Malaysia?

By Axecta Management Services, Kuala Lumpur · Last verified: 29 October 2026

Tax is paid in stages

Many owners expect to pay once, after the year ends. For most companies the process is in stages:

1. Estimate the tax for the year (the CP204 submission).
2. Pay instalments during the year based on that estimate.
3. Calculate actual tax after year-end and file Form C.
4. Settle the balance if actual tax is higher than the instalments paid, or receive a refund if lower.

Estimated tax and monthly instalments

The estimate is submitted before or at the start of the basis period, with the timing set by LHDN. Once the estimate is in place, the company pays equal monthly instalments through the year. Revising the estimate is allowed within specific windows. Read how CP204 works for the detail and common penalties.

New companies follow special rules in their first years, so they should check the LHDN guidance for the first estimate.

Balance of tax after filing

After year-end the company prepares its accounts and tax computation and files Form C. If the final tax is higher than the instalments, the balance is payable by the date LHDN sets. If lower, the company can claim a refund or offset.

Payment methods and references

LHDN accepts payments through online banking and other channels. Always:

• Use the correct payment reference for the type of payment (instalment vs balance).
• Quote the company’s tax number.
• Keep the receipt with the tax file.
• Check that the payment is posted in the company’s tax account.

Late payment

Late or underpaid tax can attract penalties under the Income Tax Act 1967. The rates and the time they apply are stated by LHDN. Under-estimating the tax in CP204 can also lead to a penalty. We do not quote percentages here; check the current LHDN page.

Planning cash flow around payments

• Set aside tax each month as profit accrues, in a separate account if helpful.
• Review the estimate mid-year against actual results.
• Tell your accountant early about large one-off gains or losses.
• Put payment dates in the compliance calendar.

How Axecta helps

Axecta’s tax team submits CP204, tracks instalments, revises the estimate when the numbers change, and files Form C. You get a simple schedule of what is due and when.

The payment schedule LHDN publishes

LHDN’s CP204 page (updated 26 June 2026) sets out the payment timeline:

• Existing companies: equal monthly instalments, starting from the 2nd month of the basis period (section 107C(5)).
• New companies: instalments start from the 6th month of the basis period (section 107C(6)).
• Due date: the 15th day of each calendar month (section 107C(12)).
• Rounding: any fraction is added to the final instalment.
• Minimum estimate: not less than 85% of the revised estimate for the preceding year, or of the original estimate if no revision was made (section 107C(3)).

The page does not state late-payment surcharges, so check LHDN for the current position on those.

How the rhythm looks across a year

For an existing company with a 1 January to 31 December basis period, LHDN’s rules give this pattern:

• By 1 December of the previous year: CP204 submitted (30 days before the basis period starts).
• 15 February, then the 15th of each following month: instalments, since payments start in the 2nd month.
• Months 6, 9 and 11: windows to revise the estimate.
• After year-end: Form C within 7 months, then any balance.

Your accountant works out the amount of each instalment from the estimate. The point is the rhythm: a fixed day each month, not a single payment at year-end.

Balance of tax after Form C

Form C is due within 7 months after the close of the accounting period, per LHDN’s company page. If actual tax is higher than the instalments paid, the balance falls due as stated in the assessment or notice. If lower, you may be entitled to a refund or offset. See Form C filing deadline and common mistakes.

Cash-flow habits that help

• Move tax into a separate account each month.
• Compare the monthly accounts with the estimate after month 5 so you can use the 6th-month revision window.
• Keep the 15th of every month blocked for tax payments.

Frequently asked questions