Tax: SST, Income Tax, Withholding Tax and CP58

The Tax menu in CountServa brings together a Malaysian company's tax work: SST-02 returns, tax codes and adjustments, the income tax computation, Form C summary, CP204 instalments, deferred tax, withholding tax and CP37, and CP58 statements. Figures come from the invoices, bills and journals already in your books.

The Tax menu has four doorways: Income Tax, SST, Withholding Tax and CP58 Incentive Payments. Each opens a workspace with tabs along the top.

Before You Start

• You need tax or accounting rights to open these screens (see Users and Roles).
• Set your SST registration and financial year in company settings (see Company Setup).
• CountServa prepares figures and worksheets. You still file on MySST and MyTax, and you remain responsible for what you submit.

SST

Go to Tax > SST. The workspace has the tabs Returns, SST-02, SST Invoices, Tax Codes and Adjustments.

Set Up Tax Codes

1. Open the Tax Codes tab and press New Tax Code.
2. Enter a Code you will recognise in the tax dropdown (for example SV-6), the Rate %, a Name such as Service Tax 6% and the LHDN Tax Type.
3. Save. The code is now available on sales and purchase documents and feeds the SST-02.

CountServa does not impose an SST rate on you. You set the rate on each tax code, so keep your codes in line with the rates RMCD currently applies to your goods and services.

Prepare the SST-02

1. Open the SST-02 tab. It opens on the taxable period you are filing now, with the date the return and payment are due. CountServa shows the due date as the last day of the month after the taxable period ends.
2. Check Period From, Period To and the Basis (payment basis or invoice basis), then press Apply.
3. Review the output tax, the invoices behind it and any unpaid invoices.
4. Check the ledger cross-check, which compares the return with the tax posted to the SST control accounts, and the completeness cross-check, which lists sales receipts with no invoice behind them.
5. Press Print SST-02 or Download SST-02 (PDF) and use the figures to file on MySST.

The SST Invoices tab lists every invoice and credit note in the period with its taxable value, SST, collected and outstanding amounts. Use Export CSV or Download PDF for a working paper.

Record the Filing and Payment

1. Open the Returns tab. Each taxable period shows its due date, SST on a payment basis and invoice basis, whether it is Filed on MySST, whether it is Paid to RMCD, and its status.
2. Open the period and enter the tax declared, the MySST reference, the date filed and any late penalty.
3. Link the payment journal, enter the RMCD receipt number, the date paid and the amount paid, then save.
4. Attach the submitted SST-02 and the RMCD receipt so the record is complete.

Press Read with AI to let the AI Accountant fill these steps from the submitted return.

You can also record a payment on the SST-02 tab with Record Remittance, entering the Payment Date, Bank/Cash Account and RMCD Reference.

SST Adjustments and Bad Debt Relief

1. Open the Adjustments tab and press New Tax Adjustment.
2. Choose the Reason Type: Bad Debt Relief, Bad Debt Recovered, Imported Taxable Services (reverse charge), Correction or Other.
3. Choose the Direction: Increase raises the SST you owe, Decrease reduces it.
4. Enter the Tax Code, Taxable Amount, Tax Amount and Counter Account.
5. Press Save Draft to review later or Save & Post to post now. The adjustment flows into the SST-02.

The Returns tab also lists invoices unpaid for more than 12 months and can draft a bad debt relief adjustment from the invoice. Post it only once the debt is written off (see Period-End, MFRS and Planning Tools).

Income Tax

Go to Tax > Income Tax. The tabs are Computation, Form C, CP204 and Deferred Tax.

Income Tax Computation

1. Open the Computation tab and choose the Year of Assessment.
2. Net profit, book depreciation and capital allowances are pulled in automatically.
3. Enter the Tax Rate %, Other Add-backs, Other Deductions, Loss b/f, CA b/f and S.108 Bal., then press Compute.
4. Save the computation to the register. Its carry-forwards become next year's brought-forward relief.
5. Under Post Current Tax Provision, check the Income Tax Amount and press Post Provision to book the tax expense and tax payable.

When the company qualifies for the SME preferential band, the computation shows the tax by band: the first RM150,000 of chargeable income at 15%, the next RM450,000 (up to RM600,000) at 17%, and the balance at 24%. Otherwise tax is shown at the single rate you enter. CountServa also flags when the company may fall outside the SME band.

Form C

The Form C tab gives a return-style summary of the year's corporate income tax, built from the computation and CP204 instalments. It is a preparation aid, not the official LHDN form. Confirm the box references against the current Form C and submit through MyTax e-Filing.

CP204 Tax Estimate

1. Open the CP204 tab and choose the Year of Assessment.
2. Enter the Estimated Tax Payable, Number of Instalments (1 to 12, default 12) and First Instalment Month (by default the 2nd month of the basis period), and press Save Estimate.
3. If you revise the estimate in the 6th or 9th month, tick CP204A Revision before saving.
4. The Instalment Schedule lists each Due Date and Amount, and Estimate vs Actual compares it with the computed tax.
5. When you pay, fill in Record Instalment Payment with the Amount, Payment Date, Bank Account and Reference, and press Record Payment.
6. Press e-Filing Worksheet (Excel) for a worksheet to help with online filing.

Deferred Tax

1. Open the Deferred Tax tab and press New Provision.
2. Enter the As At Date and Tax Rate (%).
3. For each Temporary Difference, enter the Carrying Amount and Tax Base. Use Add Line for more items.
4. Press Post Provision. Only the change since your last provision is posted. Use Void Provision to reverse one.

Withholding Tax

Withholding tax applies when you pay certain amounts, such as royalties, interest or contract payments, to a non-resident. Go to Tax > Withholding Tax. The tabs are Certificates and CP37.

Record a Certificate

1. Press New Certificate.
2. Choose the Supplier (Non-resident) and the Open Bill to Withhold Against.
3. Choose the WHT Type. The statutory rate fills in.
4. Check the Gross Amount (RM), Rate (%) and Withholding (RM), and press Post Certificate. The supplier is paid the net amount.

The default rates CountServa fills in are shown below. The rate stays editable, for example where a double tax agreement gives a lower rate.

Remit to LHDN

1. On the Certificates tab, press Remit to LHDN.
2. Tick the certificates being paid, enter the Payment Date, Bank/Cash Account and LHDN Reference.
3. Press Post Remittance. The certificate then shows Remitted to LHDN. Use Reverse Remittance if it was posted in error.

The CP37 tab gives the supporting schedule for the LHDN CP37 form for a period, and CP37 Schedule CSV exports it.

CP58 Incentive Payments

A CP58 statement must be given to any agent, dealer or distributor whose incentives for the year total more than RM5,000.

1. Go to Tax > CP58 Incentive Payments and choose the Year of Assessment.
2. Enter the Recipient Name, Recipient TIN, Payment Date, Recipient Address, the monetary incentive and any non-monetary value and description.
3. Press Add Record.
4. The list totals each recipient and marks where CP58 Required. Press Print CP58 (all reportable) to print the statements, or Export CSV.

CP58 Forms Received

Record each CP58 you receive from a payer so you can prove the income is in your books.

1. Go to Accounting > CP58 Forms Received and add a new record.
2. Enter the Payer Company Name, Tax Year, Payer Registration No., Payer Income Tax No. and the Recipient Name (as printed on the CP58).
3. Enter the CP58 Total Amount (RM), any Tax Deducted (RM) and the CP58 Declaration Date.
4. Choose the GL Account to Reconcile Against and save.

The record compares the CP58 Total Amount with the Ledger Amount Booked and shows any Variance, with the ledger entries behind it. Press Re-tally Now after posting corrections, and Print Reconciliation for your tax file.

Frequently Asked Questions

Does CountServa File My SST-02 or Form C for Me?

No. It prepares the figures, worksheets and printouts. You file on MySST or MyTax and then record the filing in CountServa.

Why Does the SST-02 Differ From the Ledger Cross-Check?

The ledger records tax at invoice; on a payment basis the return follows payments received, so the two can differ.

How Do I Claim Bad Debt Relief on SST?

Write off the debt, then post a Bad Debt Relief tax adjustment for the tax on that invoice. It reduces the SST in the next SST-02.

Who Needs a CP58?

Any recipient of incentive payments whose yearly total is over RM5,000.

Related Guides

• Invoices and Credit Notes
• Purchases and Bills
• e-Invoice
• Period-End, MFRS and Planning Tools
• Financial Reports
• AI Accountant