Business tax in Malaysia: know what is due, and when.
NXS supports owner-managed businesses and growing Malaysian SMEs with tax compliance, planning, audits and investigations. A company's tax return is due seven months after its year end, while the owner's return, tax estimate and employer filings each have different deadlines.
Information as at 23 October 2026. General information, not tax advice.
Tax deadlines in Malaysia: one business, four tax clocks
An owner-managed company usually answers to several deadlines at once.
Company return (Form e-C).
Due within seven months of the financial year end and filed online. Any balance of tax is due on the same date.
Tax estimate (CP204).
For a company already operating, due at least 30 days before its financial year starts, then paid in monthly instalments by the 15th. A newly operating company has three months from the start of operations.
Your own return.
Form B by 30 June if you are resident and run a business in your own name. Form BE by 30 April if you have no business income, for example a salaried director. LHDN's current filing programme allows 15 extra days for e-Filing.
Employer filings.
Form E by 31 March, even for a dormant company. Employees' Form EA by the end of February.
LHDN says being selected for a tax audit does not mean you have done anything wrong. Under self-assessment, audits are LHDN's main way of encouraging compliance. Cases are selected through computer-based risk analysis and the information LHDN receives.
Three tax services, built around your dates
Personal and corporate tax compliance.
NXS prepares accounts and tax computations for Forms B, BE and C. Filing and representation are handled according to the engagement through an authorised tax agent.
Tax advisory and planning.
Applying current rates and conditions to your decisions. We make no promise of tax savings. A qualifying resident SME currently pays 15% on the first RM150,000 of chargeable income, 17% on the next RM450,000 and 24% above RM600,000. Conditions apply, including paid-up capital of RM2.5 million or less.
Tax audit and investigation.
NXS supports both tax audits and investigations according to the client’s matter: reviewing the letter, gathering records, preparing replies and coordinating the response. Formal representation is handled according to the engagement through an authorised tax agent.
Where tax meets transfer pricing.
SME rates are concessionary, not the 24% headline rate. So two SME-rate companies dealing only with each other do not get LHDN's domestic exemption from transfer pricing documentation, although other exemptions, such as the RM1 million test, may still apply. LHDN can also look at the prices between related companies, domestic ones included.
whether transfer pricing documentation appliesWhat to remember
Information as at 23 October 2026.
- 1Company, owner and employer each have their own dates.
- 2In a tax audit, LHDN's document request letter asks for a reply within 14 calendar days.
- 3Keep business records for at least 7 years.
Questions and answers
What tax rate does a small Sdn Bhd pay in Malaysia?
A qualifying SME currently pays 15% on the first RM150,000 of chargeable income, 17% on the next band up to RM600,000 and 24% above that. To qualify, paid-up capital must be RM2.5 million or less and gross business income not more than RM50 million, with other conditions. Other companies pay 24%.
When is the company tax return due in Malaysia?
Within seven months after the financial year end, filed online. Any balance of tax is due by the same date. LHDN's 2026 filing programme gives one extra month for e-Filing and treats a return received in that month as on time.
What is CP204, and can we revise it?
It is your company's estimate of tax for the year. A company already operating submits it at least 30 days before the year starts (a newly operating company has three months from starting) and pays it in monthly instalments by the 15th. You can revise it in the 6th, 9th or 11th month of the year.
When does a business owner file their own tax return in Malaysia?
If you are resident and have business income, Form B is due 30 June (a partnership files Form P by the same date). If you have no business income, for example as a salaried director, Form BE is due 30 April. LHDN's current filing programme allows 15 extra days for e-Filing.
What should we do if LHDN asks for documents in a tax audit?
Read the letter and reply within the time it gives. Under LHDN's audit framework that is 14 calendar days for a document request. If you do not reply, the audit continues on the information LHDN has, and expenses you claimed may be disallowed. Our advice is to ask for help early rather than at the deadline.
What is the difference between a tax audit and a tax investigation?
An audit checks that the return is right. LHDN runs it as a desk review by correspondence or a fuller audit with an interview. An investigation looks for deliberate evasion, can include personal documents and can lead to prosecution.
Can we correct a mistake in an earlier tax return?
You can tell LHDN in writing after the return due date but before an audit starts, provided you filed the return. LHDN's audit framework sets a concessionary penalty of 15% of the tax undercharged, or 10% where an amended return was filed first and the extra disclosure follows within six months of the due date. You must supply supporting documents, and acceptance is not guaranteed.
How far back can LHDN audit or raise an assessment?
An audit generally covers up to three years of assessment. LHDN can raise an assessment for up to five years after the end of a year of assessment, with no time limit for fraud, wilful default or negligence. Transfer pricing is different: LHDN's transfer pricing audit framework allows assessments reaching back up to 7 years of assessment.
Free 30-minute consultation.
Bring your dates, or your letter, to a free 30-minute consultation.
Tell us your financial year end and what you file now, or tell us about the letter you received. The first consultation is free, and you deal with one point of contact.