Malaysia is truly a fine country.
Not because of nasi lemak, teh tarik, or our warm people.

But because of fines.
Especially when it comes to LHDN CP204 and CP204B.

You change your financial year end?
Fine.

You forget to submit CP204B on time?
Fine RM200 to RM20,000.

LHDN not informed early enough?
No problem. They continue issuing CP205 based on the old year end.

You follow the wrong instalment schedule?
Another fine.

You pay late by one month?
Automatic 10% penalty.
No reminder. No warning. No love letter.

You revise CP204 too early?
Problem.

You revise too late?
Also problem.

You sell one building, one machine, one piece of land?
Capital gain should not be in CP204.
But if you mistakenly include it, congratulations
You just volunteered to overpay instalment tax.

In Malaysia, tax is not about paying less.
It is about missing one form, one date, one system update.

This is why Malaysia is a fine country.
Not high tax.
Just very efficient fines.

Read the full blog on Public Ruling 4/2025 – Notification on change of financial year
https://lnkd.in/gydan6db

PS : CP204 is a mandatory form from the LHDN for companies, Limited Liability Partnerships (LLPs), trust bodies, and cooperatives to submit their estimated tax payable

PS : The company has to notify IRBM on the changes of financial year end using the CP204B Form.