Tax treatment for Limited Liability Partnership (LLP) is similar to companies where chargeable income from LLP will be taxed at generally 24%. LLP with capital contribution of RM2.5 million or less is taxed at preferential tax rate of 18% on the first RM500,000 of its chargeable income.
Tax File: LLP partners will need to register for a Tax File at a nearby LHDN branch, simply by filing in Form CP 600PT.
Tax estimate of tax payable and tax payment: LLP is required to provide tax estimates by submitting Form CP204 not later than 30 days before the beginning of the basis period. For the first basis period (when commences operation), the estimate of tax payable must be submitted within three (3) months from the date commencement. Tax is payable by twelve (12) equal monthly instalments, where each instalment is payable to the IRB by the 15th of the following month.
Annual declaration: First annual declaration is to be completed within 18 months from the date of registration. As for the subsequent years, it has to be filed within 90 days from the end of the financial year.
Filling of Tax Returns: All LLP must file tax returns (i.e. Form PT) within seven (7) months from the closing date of its basis period (i.e. accounting period).
If you need further clarification, please do not hesitate to contact our tax team.
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