Companies with a 31 December 2021 year end must file a mid-year corporate income tax return, and pay any tax due, by 31 August 2021. The due date is extended to 8 September 2021 in case of e-filing.
Listed companies, commercial banks, certain other financial institutions, and taxpayers prescribed by the Director General are required to pay tax on their actual net profit for corporate income tax purposes for the first six months of the year.
All other companies are required to estimate their annual net profit for corporate income tax purposes for the 2021 year and pay tax on half of the estimated tax amount.
The tax paid on the return is creditable against a company’s annual tax liability for the 2021 year.
Surcharges apply for underestimating profits without a reasonable excuse.
Companies formed after 1 January 2021 and balancing on 31 December 2021 and therefore have an accounting period of less than 12 months, are not required to file a mid-year return. Companies are also not required to file a mid year return for their last accounting period if it is less than 12 months.
Extended deadline for e-filing of WHT and VAT returns
For monthly WHT returns and VAT returns filed electronically, which are normally due for filing during the months of February 2021 to June 2021, the filing date has been extended to the last day of the month.
This extension therefore applies to withholding tax returns (PND 1, PND 2, PND 3, PND53, PND54) and VAT returns (Por Por 30 and Por Por 36) for the tax months of January 2021 to May 2021.
For returns due for filing during the month of July 2021, the deadline for e-filing has been extended to 30 July 2021, and for returns due for filing during the month of August 2021, the deadline has been extended to 31 August 2021.