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Cooporative Tax

Introduction

Cooperative tax is imposed on the following organizations/bodies that are resident and earn income in Malaysia:

  1. Cooperatives registered under the Cooperatives Act 1993 (Act 502);
  2. Farmers' Organizations registered under the Farmers' Organizations Act 1973; and
  3. Fishermen's Association registered under the Fishermen's Association Act 1971.
Attention

Cooperative tax treatment is subject to Income Tax Act 1967

Cooperative Responsibilities
  • Submit Form C1 via e-Filling (e-C1) starting from the year of assessment 2024 within 7 months from the closing date of the accounting period (including dormant cooperatives).
  • Submit Form C1 via e-Filling (e-C1) or Form C1 manually to the HASiL Taxation Information & Records Management Division within 7 months from the closing date of the accounting period (including dormant cooperatives) for the year of assessment 2023 and onwards.
  • Submit tax estimates via e-Filling (e-CP204).
  • Cooperative Installment Payment (estimated by the cooperative).
Items/ EstimationNew CooperativeExisting CooperativeForm
Delivery BudgetWithin the first 3 months of operation30 days before the start of the basic periodCP204
Payment Period6th month
of the basic period		2nd month
of the basic period		CP207
Payment DateBefore / on the 15th of the monthCP207
Amending Budget6th or 9th or 11th month of the basic period or within all three monthse-CP204A

(Dormant cooperatives do not need to send CP204)

  • Pay the remaining tax (if any) using CP207 before/on the last day of submission of Form C1 (7 months after the closing date of the accounting period).
  • Records and account books are kept for 7 years for the purpose of reviewing HASiL.

Cooperative Tax Exemptions under Schedule 6 of the Income Tax Act 1967:

  • Subparagraph 12(1)(a)
    For the first 5 years from the date of registration of the cooperative; and
  • Subparagraph 12(1)(b)
    After 5 years have elapsed, if the member's fund on the first day of the base period is less than RM750,000

Attention

Cooperatives need to fill out and submit Form C1 via e-Filing (e-C1) or Form C1 manually regardless of whether the cooperative qualifies for tax exemption.


  • Cooperative chairman
  • Cooperative secretary
  • Cooperative treasurer
  • People who perform any of the above functions
Category Taxable Income Range (RM) Tax Calculation (RM) Rate (%) Tax (RM)
A 1 – 30,000 first 30,000 0 0
B 30,001 – 60,000 Next 30,000 5 1,500
C 60,001 – 100,000 First 60,000,
next 40,000		 10 1,500
4,000
D 100,001 – 150,000 On the First 100,000
Next 50,000		 15 5,500
7,500
E 150,001 – 250,000 On the First 150,000
Next 100,000		 18 13,000
18,000
F 250,001 – 500,000 On the First 250,000
next 250,000		 21 31,000
52,500
G 500,001 – 750,000 First 500,000,
next 250,000		 23 83,500
57,500
H 750,000 and above The first 750,000
for each subsequent ringgit		 24 141,000
………
  • Service ByrHASiL
  • Payment via Credit Card
  • Payment Services at appointed HASiL agents

* Please refer to Section 65A, 77A, 107C, paragraph 12 of Schedule 6, Income Tax Act 1967 and Public Ruling No. 9/2011 for further reference.