All You Need to Know About Form CP204

Under the self-assessment system, all companies must determine and submit on a prescribed form (form CP204) an estimate of their taxes due for one year of assessment, 30 days before the start of the base period.

The new company must present CP204 within a period of 3 months after starting its activity.

However, when a business starts operating (that is, during the first period), the estimate of the tax to be paid must be submitted to the IRB within 3 months from the date of commencement of its activity and thereafter no later than 30 days before the start of the base period.

The tax estimate for the following year cannot be less than 85% of the previous one.

With effect from fiscal year 2006, the estimate of the tax payable presented for a particular year cannot be less than 85% of the revised estimate of the tax payable for the immediately preceding assessment year, or if a Revised estimate cannot be less than 85% of the estimate of taxes to be paid for the immediately preceding appraisal year.

A company is still required to file CP204 within the stipulated time, even if it expects its estimate of the tax to be paid to be NULL.

SMEs do not need to submit CP204 within the first 2 years of evaluation

With effect from the year 2008, when an SME begins to operate for the first time in an appraisal year, the SME is not obliged to provide an estimate of taxes payable or to make installment payments for a period of 2 years from of the year of appraisal in which the SME begins operations.

Effective YA2011, when a business begins operating for the first time in an appraisal year and the base period for that appraisal year is less than 6 months that business is not required to provide an estimate of the taxes to be paid. or make installment payments for that year evaluation.

SMEs can still be sanctioned if a CP204 is not filed, even if it is not mandatory

An SME that is exempt from providing a tax estimation payable mentioned above is recommended to file CP204 notifying the IRB of its SME status without having to indicate the amount of the estimate of the tax to be paid for that particular assessment year. to avoid any penalty for infringement. IRB erroneously imposed the tax estimate or penalty for non-filing.

What is e-Filing?

To file an Income personal tax Return (ITR), you must register with the Department of Income Tax e-filing website. The registration process is pretty straightforward and easy. You must keep your PAN card handy to enter the required details on the registration portal. In addition, when registering for e-Filing 2021 on the portal, you will need to indicate your mobile phone number and email address, which is mandatory.

The full form of the electronic archive is "LHDN e-Filing". find here With the expansion of the Internet, electronic registration has not only become popular but is also required in many cases. Electronic filing is the process of filing a tax return online using tax preparation software pre-approved by the relevant tax authority.

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