Company Basis Period & Year of Assessment: A Short Guide

Contents

1. Introduction
2. What is a basis period?
3. Year of Assessment (YA) and the basis period
4. New companies
5. Change of accounting year end
6. Form CP204 / CP204A
7. Frequently Asked Questions (FAQ)
8. Official sources

Introduction

Companies in Malaysia are taxed on chargeable income for a Year of Assessment (YA). To determine which income must be reported for a YA, HASiL applies the concept of the basis period. This article explains the relationship between a company's basis period and the Year of Assessment, based on HASiL's official sources.

What is a basis period?

The basis period is the period that determines which income is taxed for a Year of Assessment. For companies, the basis period is usually the accounting period ending in the calendar year of that year of assessment.

According to the HASiL Form C Guidebook 2026 (box 11):

The statutory definition of "basis period" in the Income Tax Act 1967 (section 20) was not quoted verbatim from the Act text in this round — this item still awaits official confirmation from HASiL — check again with HASiL before deciding. by 03.

Year of Assessment (YA) and the basis period

HASiL publishes a list of Public Rulings (PR) governing basis periods for companies. The list below was verified from the HASiL Company Basis Period page on 2026-11-09:

• PR 7/2016 — Basis Period for a Company in Liquidation (07.10.2016);
• PR 8/2014 — Basis Period for a Company, LLP, Trust Body and Cooperative (01.12.2014);
• PR 7/2001 — Basis Period for a Business Source & Non-Business Source (Company) (30.04.2001);
• PR 5/2001 — Basis Period for a Business Source (Cooperative) (30.04.2001).

Special calculation examples for a change of accounting year end require 03 verification against PR 8/2014 before publication — this item still awaits official confirmation from HASiL — check again with HASiL before deciding.

New companies

According to the HASiL Estimated Tax page, for a newly incorporated company:

• the first basis period must be not less than six (6) months;
• the first-year estimate follows the estimated profit;
• the minimum amount of 85% (s.107C(3) ACP) applies from the second YA.

Change of accounting year end

When a company changes its accounting year end, the correct basis period start and end dates must be filled in box 11 of Form C. The specific rules for this situation are governed by PR 8/2014.

Form CP204 / CP204A

Companies are required to submit their tax estimate via Form CP204 and CP204A through e-Filing from the Year of Assessment 2018:

Frequently Asked Questions (FAQ)

Q: What is the basis period for the first year of a new company? A: According to the HASiL Estimated Tax page, the first basis period is not less than six (6) months; the first-year estimate follows the estimated profit.

Q: When must e-CP204 be submitted? A: Not later than 30 days before the beginning of the basis period for a year of assessment (subsection 107C(2) ACP).

Q: Where can I find the list of PRs relating to basis periods? A: On the HASiL Company Basis Period page (PR 7/2016, 8/2014, 7/2001, 5/2001).