Check your CP204 estimate against LHDN's 85% minimum estimate rule, calculate Section 107C(10) underestimation penalty exposure using the 30% tolerance rule, and work out the balance tax due before your assessment arrives.
ITA 1967 — S107CCP204CP204ALHDN Guidelines
01CP204 — original estimate
2026 National Budget — instalment changes
Following the 2026 Budget announcement, instalment payments are being restructured to fall entirely within the same basis period:
YA 2026 & prior — 12 instalments, starting Month 2 (first instalment falls outside the basis period start). YA 2027 (transitional) — 11 instalments, Month 2 to Month 12. The count is reduced by one so all payments complete within the same year. YA 2028 onwards — 12 instalments, Month 1 to Month 12. Payments now begin in the very first month of the basis period.
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02CP204A — revised estimate
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Under S107C(7) ITA 1967, CP204A revisions are generally permitted in Month 6, Month 9 and Month 11 of the basis period.
03Actual tax position
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04Tax estimate analysis
Enter your CP204 estimate to see the threshold analysis
A note from Dharam —
This tool is for estimation and planning purposes only. It does not constitute tax advice and should not be relied upon as a substitute for professional advice. The 85% minimum estimate rule and S107C(10) underestimation penalty are separate Section 107C matters under the Income Tax Act 1967. Penalty assessment is subject to LHDN's discretion — the actual penalty may differ from this estimate depending on your specific circumstances, objections filed, or any extension of time granted. The instalment payment changes (YA 2027 transitional period — 11 instalments; YA 2028 onwards — 12 instalments starting Month 1) reflect the 2026 National Budget announcement and are subject to the issuance of formal legislation and LHDN guidelines. Always engage a licensed tax agent or Chartered Accountant before making tax-related decisions. For official guidance, refer to LHDN's CP204 and CP204A guidelines at hasil.gov.my.