Call Us Free: 603-9281 1588

SCHEDULAR TAX DEDUCTION SCHEME (STD)

(Potongan Cukai Bulanan – PCB)

 

The STD scheme is based on the employee’s monthly remuneration which foloows a table provided by the Inland Revenue Board (IRB).

 

Every month, an employer is required to make the appropriate deduction for each employee who is subject to STD and remit the amount deducted (total) or should have been deducted to the IRB not later than the 10th of the following month (receipts for payments received will be issued to the employer).

 

Instalments scheme for businesses

 

Under the section 107B of the Income Tax Act 1967(ITA 1967),

 

  • Businessmen under this Scheme are required to make six instalment payments (bi-monthly) per year commencing in March of the respective year. Notice of Instalment Payments sec 107B (Form CP 200) will be issued by the IRB at the beginning of each year.
  • This instalment is an estimate and the actual tax payable is as per Notice of Assessment which will be issued later.
  • You can apply to amend the estimate tax. Your application should be made not later than 30th June of the relevant year. Amended Notice of Instalment Payments (Form CP 202) will be issued by the IRB in reply to the application.
  • Instalments must be paid within 30 days of the due date. Each payment must be accompanied with a Remittance of Instalment Payment Slip (CP 203).
  • After the receipt of the Notice of Assessment, the difference must be paid in the month following the last instalment.

 

Payment of Tax by Companies

 

Form CP 204 is the prescribed form to be used in accordance with ITA 1967, when furnishing estimate of tax payable.

 

  • Companies are required to furnish the estimate of tax payable to IRB not later than 30 days before the beginning of the basis period of that particular year of assessment.
  • The estimate shall not be less than the revised estimate of the immediately preceding year if any, or estimate if there is no revised estimate.
  • Companies which commence operations are required to furnish an estimate of tax payable within three months of commencement of operations in their first year of assessment.
  • With effect from YA 2002, companies are required to calculate and pay in accordance with the estimate furnished Form CP 204.
  • Monthly instalments are derived at, by dividing the estimated amount with the number of months in the basis period. If there are cents resulting from the calculation above, the cents shall be added to the last instalment.

 

Commencement of the monthly instalments

 

  • The first instalment shall commence on the second month of the basis period, and shall be paid on or before the 10th of that month.
  • For companies first commence operation, the first instalment shall be paid in the sixth month of the basis period.
  • Balance of tax (if any) has to be settled on or before the last day of the sixth month after the closing of the accounting period.

 

Revised estimate of tax payable

 

With effect from YA 2002, any revision to tax estimate of tax payable must be made using the Form CP 204A and revision can only be made in the sixth month of the basis period.

 

If the form is submitted within the first ten days of the month, then the remaining balance of instalments shall be payable in eight equal instalments. However, if the form is submitted after the 10th days of the month, then the remaining balance of instalment shall be payable in seven equal monthly instalments.

 

If the CP 204 form is not completed and not furnished 30 days before the commencement of the basis period of a year of assessment, companies are not qualified to make revised estimate in the sixth month.

 

Change of Accounting Date

 

Information required in the six month of the basis period:

 

  • Companies are required to inform the change of accounting period (if any) in the six month of the basis period by submitting Form CP 204A and CP 204B.
  • If the change of accounting period is only known after the sixth month of the basis period then companies are required to submit Form CP 204B only. Form CP 205 will be issued to the Company informing the date and amount of monthly instalment that the company has to follow.
  • If the change of accounting period involves the change of basis period for the following year of assessment then Form CP 204 has to be submitted 30 days before the commencement of the new basis period.

 

 

 

 

 

Notice of Instalment Payments

 

Form CP 205 will only be issued if:

  • Estimate of tax payable is less than the estimate or revised estimate of the preceding Year of Assessment. Letter (CP 216) followed by Notice of Instalment Payments would be issued to inform on the estimated amount of tax payable.
  • A company fails to furnish or is late in furnishing the Form CP 204. The estimated amount would be based on the revised estimate of the preceding year of assessment or on the estimate if there is no revise estimate.
  • Upon receipt of information that the estimated amount is higher than the revised estimated amount (if there is), or original estimated amount.
  • Basis period is extended as a result of a change of accounting period.

 

Notice of Instalment Payments (Amended)

 

Form IT 206 is applicable for YA 2001 only. Issued in reply to revision of estimated tax payable made in the sixth month of the accounting period.

 

Other

 

STD schedules or table is divided into three categories, as follows

 

Category 1 – a single person and a married lady

 

Category 2 – where wife/husband is not working

 

Category 3 – where wife/husband is working

Address

#7-2, Jalan 4/93,
Taman Miharja, 55200 Kuala Lumpur.
Phone: 603-9281 1588
Fax: 603-9281 6885
Website: http://www.fswongco.com
Email: tan@fswongco.com

Disclaimer

F S WONG & CO provides the [www.fswongco.com] Web site as a service to the public and Web site owners. and Read More.