What is self assessment for companies

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What is self-assessment for companies?

Self Assessment System - A Guide for Companies

Self Assessment is the manner by which a taxpayer works out and pays his own income tax. It is not a new tax but a system whereby the taxpayer is given the responsibility to compute his own tax liability.

Self Assessment is a total process change from the previous formal assessment system. Under the formal system, taxpayers are required to declare their income in the Return Form, submit the Return Form to the Inland Revenue Board (IRB) and IRB will then raise the assessment. A Notice of Assessment is sent to the taxpayer and based on the tax indicated in the Notice, payment is made accordingly.

Under the Self Assessment System, taxpayers are still required to complete and submit the Return Form by the required dates. However, no notice of assessment will be sent to the taxpayers. Instead taxpayers will have to compute their own tax and make payment of the full amount at the time of filing their tax returns. At the same time, taxpayers are also required to estimate the tax to be paid for the current year and make monthly payments during the year based on the estimate.

Self Assessment System for Companies

The Self Assessment System will be introduced for companies from the year 2001. Under this system, companies are required to furnish estimate of tax, make payment of tax and file the Return Form C to IRB.

Tax Estimate

Furnishing Tax Estimate
A company is required to furnish an estimate of its tax payable in a prescribed form (CP 204) to IRB not later than 30 days before the beginning of the basis period for a year of assessment.

Prescribed Form (CP 204)
The prescribed form for furnishing an estimate will be issued by IRB to companies. In the event that companies did not receive the form, these forms are also available at all IRB offices. Upon completion of CP 204, it should be sent back to:

Inland Revenue Board
Pusat Pemprosesan
(Bahagian Operasi)
Karung Berkunci 11055
50990 Kuala Lumpur

Basis of Estimate
The estimate of tax payable for a current year furnished by a company, should not be less than the estimate of tax to be paid for the immediate preceding year of assessment. Notwithstanding the above, it is specifically provided that the estimate of tax payable for Year of Assessment 2001 shall not be less than the tax payable for Year of Assessment 1999.

Upon receiving the completed CP 204 furnished by the company, IRB will then issue Notice of Instalment Payment (CP205).

Revising The Estimate
A company may apply to revise its estimate of tax payable in the sixth month of the basis period for a year of assessment. The application for revision can be done using the same prescribed form (CP204) but indicating that it is to provide a "revised estimate".

A Notice of Revised Instalment Payment (CP206) will be issued by IRB to confirm instalment payments following the revised estimate.

Payment of Tax

Payment by Instalment
The estimated tax payable must be paid in equal monthly instalments. These monthly instalments must be paid on or before the 10th day of each month commencing from the second month of the basis period for a year of assessment. All payments must be made using the Remittance Slips (CP 207).

Remittance Slips will be issued by IRB to the companies together with the Notice of Instalment Payment (CP 205).

Final Payment
Companies must settle the difference between actual tax liability and total instalment payments on or before the last day of the sixth month from the date following the close of its accounting period.

Method of Payment

All payments of tax to the IRB must be made using the Remittance Slips (CP 207). Payment of tax can be made in any of the following ways:

By post - Payment by cheques/bank draft can be sent to the respective addresses mentioned below. All cheques must be crossed and made payable to: "THE DIRECTOR GENERAL OF INLAND REVENUE". Write down the name of the company, the tax reference number and the address on the reverse side of the cheque.

Peninsular Malaysia	Sabah	Sarawak
Inland Revenue Board of Malaysia, Cawangan Pungutan Karung Berkunci 11061 50990 Kuala Lumpur.	Inland Revenue Board of Malaysia, Tingkat 1, Blok D Bangunan KWSP 88600 Kota Kinabalu Sabah.	Inland Revenue Board of Malaysia, Tingkat 5, Bangunan Tun Datuk Patinggi Haji Bujang, Jln Simpang Tiga, 93600 Kuching, Sarawak.

Payment Counter - Payment can also be made at IRB's Payment Counter, Ground Floor, Block 8A, Government Offices Complex, Jalan Duta, Kuala Lumpur or at any Bumiputra-Commerce Bank (BCB) branches in Malaysia.

Filing of Return Form C

For the Year of Assessment 2001, a new Return Form C will be designed to facilitate companies to compute their tax.

Issue & Submission
IRB will issue Return Form C on a quarterly basis, based on the companies' accounting year end. The Return Form C must be completed and submitted to IRB within 6 months after the close of its accounting period.

Companies Accounts Year Ending	Issue of Return Form C	Submission of Return Form C
31 Jan 2001 28 Feb 2001 31 Mar 2001	April 2001	31 July 2001 31 Aug 2001 30 Sept 2001
30 Apr 2001 31 May 2001 30 June 2001	July 2001	31 Oct 2001 30 Nov 2001 31 Dec 2001
31 July 2001 31 Aug 2001 30 Sept 2001	October 2001	31 Jan 2002 28 Feb 2002 31 Mar 2002
31 Oct 2001 30 Nov 2001 31 Dec 2001	January 2002	30 Apr 2002 31 May 2002 30 June 2002

Companies are required to furnish Return Form C for each year of assessment to the Director General of Inland Revenue (DGIR).

Notice of Assessment
Under the Self Assessment System, all companies are expected to compute their own tax payable which will be submitted to IRB with the Return Form C. However, no notice of assessment will be issued to companies.

The DGIR is deemed to have made an assessment based on the tax computation furnished in the Return Form. The Return is deemed to be a notice of assessment. The date of filing is deemed to be the date on which the notice of assessment is served on the company.

Self Assessment Time Table For Companies

Accounting Dates	Submission of Tax Estimate Before	Revision of Tax Estimate (If Any)	Commencement of monthly Instalment Payments	Issue of Return Form	Submission of Return Form & Final Payment
31/01/2001 28/02/2001 31/03/2001 30/04/2001 31/05/2001 30/06/2001 31/07/2001 31/08/2001 30/09/2001 31/10/2001 30/11/2001 31/12/2001	01/01/2000 01/02/2000 01/03/2000 01/04/2000 01/05/2000 01/06/2000 01/07/2000 01/08/2000 01/09/2000 01/10/2000 01/11/2000 01/12/2000	July 2000 Aug 2000 Sept 2000 Oct 2000 Nov 2000 Dec 2000 Jan 2001 Feb 2001 Mar 2001 Apr 2001 May 2001 June 2001	Mar 2000 Apr 2000 May 2000 June 2000 July 2000 Aug 2000 Sept 2000 Oct 2000 Nov 2000 Dec 2000 Jan 2001 Feb 2001	Apr 2001 Apr 2001 Apr 2001 July 2001 July 2001 July 2001 Oct 2001 Oct 2001 Oct 2001 Jan 2002 Jan 2002 Jan 2002	31/07/2001 31/08/2001 30/09/2001 31/10/2001 30/11/2001 31/12/2001 31/01/2002 28/02/2002 31/03/2002 30/04/2002 31/05/2002 30/06/2002

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