CP204 Service
Tax estimates affect cash flow all year.
Form CP204 sets your company's tax instalments. An estimate that is too high ties up cash; too low, and penalties follow.
You are unsure how much tax to estimate.
Cash flow is affected by inaccurate instalments.
Revisions are needed but the timing is unclear.
CP204 • Estimates • InstalmentsCP204 Service
CP204 services in Malaysia — estimated tax payable forecasting, form preparation, revisions and instalment management.
Every Sdn Bhd in Malaysia has to play a small forecasting game with LHDN every year. Before the financial year even begins, you're required to estimate your tax payable and submit it on Form CP204 — then pay that estimated tax in monthly installments throughout the year.
Estimate too low? If your final tax exceeds the estimate (or revised estimate) by more than 30%, LHDN imposes a 10% penalty on the difference. Estimate too high? You're tying up cash flow that could be working in your business. Miss the submission deadline entirely? Penalties kick in immediately.
It's one of those compliance items that looks routine on paper but quietly bleeds money when handled poorly. At KKHO, our licensed tax agents handle CP204 properly — accurate estimation, timely submission, well-timed revisions, and clear installment scheduling — so you never get caught by the 30% rule.
What Is CP204?
CP204 is the form Sdn Bhd companies use to submit their estimated tax payable to LHDN for an upcoming year of assessment. The estimate must be:
- Submitted at least 30 days before the start of the financial year
- Not less than 85% of the previous year's revised estimate (or actual tax, where higher) — for established companies
- Paid in equal monthly instalments starting from the 2nd month of the financial year
For newly incorporated SMEs, CP204 submission is waived for the first two years of assessment, provided certain conditions are met (paid-up capital not exceeding RM2.5 million and not part of a larger group). It's a meaningful relief for startups — and one we make sure qualifying clients claim properly.
CP204 vs CP204A — What's the Difference?
CP204 is the original estimate, submitted before the financial year starts.
CP204A is the revised estimate, allowed at specific points during the year:
- In the 6th month of the basis period
- In the 9th month of the basis period
- In the 11th month of the basis period (introduced as a permanent revision opportunity in recent years)
These revisions are your safety valve. If your business is performing very differently from what you projected at the start of the year — better or worse — a properly timed CP204A can dramatically reduce your penalty exposure or free up unnecessarily tied-up cash.
Most companies that get hit with the 30% penalty either didn't revise at all, or revised too late.
Who This Service Is For
Our CP204 services are designed for:
- Sdn Bhd companies of all sizes managing their annual tax estimation
- Newly incorporated SMEs wanting to claim the two-year exemption properly
- Growing businesses whose actual results are diverging from initial estimates
- Group structures managing CP204 across multiple entities
- Companies that have been hit with the 30% penalty before and want it not to happen again
- Foreign-owned Sdn Bhds unfamiliar with Malaysia's instalment-based tax system
If you have a Sdn Bhd, you have a CP204 obligation. The only question is whether it's being handled well.
What's Included in Our Service
A complete, compliant set of statements prepared to the same standards as our audit work.
Full set of financial statements
Statement of financial position, income statement, changes in equity and notes.
Prepared under MPERS
In accordance with the applicable approved accounting standards.
Directors' report
Directors' report and statement by directors where required.
Aligned with Form C
Your statements agree with your tax computation for LHDN filing.
Submission-ready documents
Prepared for SSM, LHDN, banks and investors.
Audit exemption guidance
Ongoing guidance on your eligibility to remain audit-exempt.
You get a CP204 process that runs quietly in the background — accurate, timely, and always under control.
Why Sdn Bhd Owners Choose KKHO
- Licensed tax agents under Section 153. CP204 estimates are prepared and reviewed by tax agents legally licensed to act before LHDN.
- Estimation that's actually thought through. We don't just copy last year's number. We base estimates on real business projections — your revenue pipeline, capital expenditure plans, hiring plans, and known one-off items.
- Active revision management. Most penalty cases come from missed revision opportunities. We track your performance through the year and flag revisions at the right time.
- Built-in coordination. Because your accounting, tax, and audit work all sit under one roof, the figures feeding into CP204 are the same figures driving your management accounts and your eventual Form C — no inconsistencies.
- Reminders before deadlines. Monthly instalment dates, CP204A windows, year-end review checkpoints — all tracked and flagged ahead of time.
Make CP204 a Quiet Part of Your Compliance — Not a Penalty Risk
CP204 isn't glamorous tax work, but getting it wrong is one of the most common — and most avoidable — sources of LHDN penalties for Sdn Bhd companies. Let our team handle the estimation, the revisions, and the instalments, so the only time you think about CP204 is when your monthly reminder lands.
📞 Get in touch for a free consultation — share your company's situation, and we'll show you exactly how we'd handle CP204 for the year ahead
CP204 Service
For companies that want realistic tax estimates and instalments.
Everything you need to move forward with confidence.
Clear scope, clear process and proper guidance — you will immediately understand what is included and what happens next.
General Information & Review Status
The information on this page is general in nature and does not constitute legal, tax, audit or professional advice. Statutory requirements may change and should be confirmed for your company's specific circumstances with a licensed professional or the relevant authority.
Official sources:
Ready to Get Started with CP204 Service?
Talk to our team today for a free, no-obligation consultation. We'll review your situation and tell you exactly what's needed — before any commitment.