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Section 3: Tax and Finance

Business Tax Basics

Tax obligations for sole proprietors and companies

Types of business taxes

If you own a business, you need to pay business tax. The type depends on your business structure.

Sole Proprietor/Partnership:

Taxed as personal income
File Form B with personal tax
Tax rates: 0-30% (progressive)

Private Limited Company (Sdn Bhd):

Separate legal entity
File Form C annually
Tax rate: 24% (or 15% for SMEs)

Important dates:

Form B (sole prop): April 30
Form C (company): Within 7 months of FYE
CP204 (estimate): Before FYE starts

Important numbers:

LHDN Hotline: 03-8911 1000
Website: hasil.gov.my

Overview

Business taxation in Malaysia varies based on business structure. Understanding your obligations helps avoid penalties and ensures compliance.

Business Structures & Tax

Sole Proprietorship/Partnership:

Business income taxed at personal rates
File Form B with individual tax return
Tax rates: 0-30% (progressive)
No separate business tax filing

Private Limited Company (Sdn Bhd):

Separate legal entity from owners
Corporate tax rate: 24%
SME rate (first RM600k): 15%
File Form C annually

Tax Obligations

For Companies:

CP204: Submit estimated tax payable before FYE
Monthly PCB: Deduct from employee salaries
Form C: File within 7 months of FYE
Pay tax: Within 7 months of FYE

For Sole Proprietors:

Keep records: Income and expenses
File Form B: By April 30
Pay tax: By April 30

Allowable Business Expenses

✅ Rent for business premises
✅ Employee salaries and EPF
✅ Utilities (electricity, water, internet)
✅ Office supplies and equipment
✅ Marketing and advertising
✅ Professional fees (accountant, lawyer)
❌ Personal expenses (not claimable)
❌ Capital expenses (claim via capital allowances)

Important Dates

Form	Deadline
Form B (Sole Prop)	April 30
Form C (Company)	7 months after FYE
CP204 (Estimate)	Before FYE starts
Tax Payment	7 months after FYE

Important Contacts

LHDN Hotline: 03-8911 1000
Website: hasil.gov.my

Frequently Asked Questions

Do I need to register for business tax?

Yes, register with LHDN within 3 months of starting business. Get a tax file number for your business.

Can I claim personal expenses as business expenses?

No, only expenses wholly incurred for business purposes are claimable. Mixing personal and business expenses can lead to audit issues.

What if my business makes a loss?

Business losses can be carried forward to offset future profits for up to 7 years. File tax return even if no profit.

Do I need an accountant for business tax?

Not mandatory, but recommended for companies. Sole proprietors with simple businesses can file themselves using e-Filing.

Last updated: March 2026

Disclaimer: This guide provides general information only. Always verify with official sources for the most current information.