Public Ruling on Change of Accounting Period Updated

1. Exemption from Form CP204 for New Small Companies

• Newly established small companies with paid-up capital ≤ MYR 2.5 million are exempt from submitting the Estimate of Tax Payable Form (CP204) for the first two relevant Years of Assessment (YAs).
  • However, this exemption does not apply if more than 20% of ordinary shares are held by foreign companies or non‑citizen individuals—such companies must submit CP204 from year 1. [linkedin.com]

️ 2. Timing for Revising Tax Estimates

• The definition of a “revised estimate” has been clarified to include revisions made at these stages (in priority order):
  1. 11th month of the basis period
  2. If none in the 11th month, then in the 9th month
  3. If none still, then in the 6th month
• This sequence helps determine when penalties apply for under‑estimating tax. [linkedin.com]

3. Online Notification via e‑CP204B

• Companies must notify IRBM of accounting period changes using Form CP204B, now available for online submission through MyTax (e‑CP204B). [taxguardsa…visory.com], [hasil.gov.my]

4. Scope and Rationale of the Ruling

• This Ruling explains:
  • The legal requirement to notify the Director General of any change in accounting period
  • Procedures and conditions for tax instalment payments and revised estimates
  • Penalties in cases of failure to notify or underestimating tax instalments. [hasil.gov.my], [linkedin.com]

✅ Overall Implications for Companies & LLPs

• Small new companies (paid‑up capital ≤ MYR 2.5 million, domestic‑held) enjoy a relief by skipping CP204 for their first two YAs.
• All others, especially those with foreign/ non‑citizen ownership >20%, must still file CP204.
• Firms retaining tax flexibility should consider making revised estimates in months 6, 9, or 11 to align with potential tax figure changes.
• Any change in accounting period requires a timely notification via Form CP204B, now streamlined via e‑filing.

For complete details—procedures, examples, legal references, and penalty computations—refer to the official Public Ruling No. 4/2025 (PDF) published on the IRBM website. [hasil.gov.my]