FAQs 11th month revision and deferment of CP204 and CP500 payments

1.

Which industries are eligible to apply for the revision of estimate of tax payable in the 11th month of the basis period for YA 2021 and YA 2022?

All industries are eligible

2.

Is this 11th month revision specifically for YA 2021 and YA 2022 only?

Yes

3.

Is this 11th month revision only allowed if the revised estimate of tax payable is higher than the initial or revised estimates of tax payable (i.e., in the sixth or ninth month of the basis period)?

No. The 11th month revision is allowed regardless whether it is higher or lower than the initial or revised estimates of tax payable (i.e., in the sixth or ninth month of the basis period).

4.

If a taxpayer is late in applying for his revised estimate of tax payable in the 11th month of the basis period for YA 2021 and/or YA 2022, can the taxpayer apply for a revised estimate of tax payable in the 12th month of the basis period?

No, as the initial estimate of tax payable (CP204) for YA 2022 and/or YA 2023 should have already been submitted by then.

5.

Does this 11th month revision refer to a revision in “the month of the 11th monthly tax instalment” or “11th month of the basis period”?

This 11th month revision refers to the 11th month of the basis period for YA 2021 and YA 2022.

6.

Must the revised estimate of tax payable for this 11th month revision be higher than 85% of the initial or revised estimate of tax payable for the immediate-preceding YA?

No

7.

Must the initial estimate of tax payable for YA 2022 be at least 85% of the revised estimate of tax payable submitted in this 11th month revision? 

No. The initial estimate of tax payable for YA 2022 must not be less than 85% of the initial or revised estimate of tax payable in the sixth or ninth month of the basis period for YA 2021.

8.

Will the underestimation penalty under Section 107C(10) of the ITA be imposed if the company’s final tax liability per the tax return exceeds the revised estimate of tax payable by more than 30% of the final tax?

Yes. If the company’s final tax liability per the tax return exceeds the revised estimate of tax payable in the sixth or ninth month of the basis period by more than 30% of the final tax, the amount in excess of 30% will be subject to a 10% penalty.

9.

Does the taxpayer have to wait for IRB’s approval for the application of this 11th month revision?

No. However, the application must be in order and the relevant conditions must be satisfied. 

10.

When is the due date for the application of this 11th month revision?

11.

Can a taxpayer who is eligible for the CP204 deferment from January 2022 to June 2022 apply for the 11th month revision for YA 2021 and YA 2022? 

Yes

12.

How may one apply for the 11th month revision?

The application form must be completed and submitted via e-mail to pindaancp204bajet2022@hasil.gov.my

The application form is available on the IRB’s website as follows:

www.hasil.gov.my -> Forms -> Download Forms -> Other Forms -> Borang Permohonan Pindaan Anggaran Cukai Bulan Ke-11 Tempoh Asas Bagi Tahun Taksiran 2021/2022 

13.

Are any supporting documents required for the application of the 11th month revision?

No

14.

Does Part B (Akuan) of the application form need to be completed if the taxpayer submits the application form himself?

Yes

1.

What are the criteria for a business to qualify as an MSME?

The company must have:

• Paid-up ordinary share capital of RM2.5 million or less at the beginning of the basis period, and
• Gross income from business sources of not more than RM50 million for the relevant YA

2.

Do taxpayers have to apply for the deferment of CP500 payments?

No. Taxpayers who have to remit CP500 payments are allowed to defer the payments due between 1 January 2022 and 30 June 2022.

3.

Is the deferment of CP204 payments applicable to all basis periods or limited to basis periods ending on 31 December 2022 only?

The deferment of CP204 instalment payments is applicable to all basis periods, as long as the instalment payments are due between 1 January 2022 and 30 June 2022.

4.

How is the eligibility for the deferment of CP204 instalment payments determined?

The eligibility for deferment is based on the response to the MSME criteria (refer Q1) indicated in the latest income tax return form received by the IRB.

5.

Will taxpayers who are eligible for the deferment of CP204 and CP500 payments be required to settle the deferred payments all at once after the deferment period ends?

No. The payment is to be made upon submission of the income tax return form for the relevant YA if there is any balance of taxes to be paid.

6.

Will the increase in taxes under Sections 107B(3) or 107C(9) of the ITA be imposed on taxpayers who have deferred their CP204 or CP500 payments?

No. The increase in taxes under Sections 107B(3) and 107C(9) of the ITA will not be imposed in cases where payments are remitted after the relevant due date, during the deferment period.

7.

Can CP204 or CP500 payments that have been remitted during the deferral period be carried forward to offset instalment payments which are due after the deferment period?

No. The payments will not be allowed to be carried forward to offset instalment payments which are due after the deferment period or the next YA. The increase in taxes under Sections 107B(3) and 107C(9) of the ITA will not be imposed as well for late payments during the deferment period.

8.

Can a taxpayer choose to decline the automatic deferment of CP204 or CP500 payments and continue to remit the payments per the original instalment payment schedule? If yes, does the taxpayer need to inform the IRB?

Yes. Taxpayers can decline and continue remitting the CP204 or CP500 payments per the original payment schedule without having to inform the IRB.

9.

Will IRB issue a notification to taxpayers who are eligible for the deferment of CP204 and CP500 payments?

The IRB will inform eligible taxpayers of the deferment of their CP204 payments via their e-mails registered with the IRB. However, no notification will be sent for the deferment of CP500 payments as all CP500 payments due between 1 January 2022 and 30 June 2022 can be deferred  

10.

Can a taxpayer appeal if he is eligible for the deferment of CP204 payments based on his current MSME status?

Yes. Taxpayers can submit an appeal to penangguhancp204@hasil.gov.my

11.

Can a taxpayer who is eligible for the deferment submit an amendment to the CP204 in the sixth, ninth or 11th month of the basis period that falls within the deferment period, or make amendments to CP500 before 30 June 2022?

Yes

12.

Will taxpayers who are required to remit CP500 instalment payments still receive a Form CP500 for YA 2022?

Yes. However, taxpayers are not required to remit the payments due during the deferment period (i.e., January, March and May 2022).