Partnership tax Malaysia: Form P, CP30 and your Form B.

So if you googled "how much tax does my partnership pay", the honest answer is: the partnership pays nothing, and the tax bill lands on each partner personally, based on their slice. Once you see the three documents and how they connect, it stops being confusing.

Does a partnership pay tax in Malaysia?

No. A conventional partnership is "tax transparent", which is a fancy way of saying the tax law looks straight through the business to the people behind it. The partnership itself is never assessed and never pays a sen of income tax.

What it must still do is file Form P every year. Form P is a declaration, not a bill. It reports the partnership's total income, its expenses, its capital allowances, and, most importantly, how the profit (or loss) is divided between the partners. Filing Form P is compulsory even though there is no tax attached to it.

The tax then happens one level down, at each partner. Your share of the partnership profit is treated as your business income and is added to everything else you earned that year. That is why a partner, even someone whose only income is from one partnership, files Form B (the business form), never Form BE.

Form P, CP30 and your Form B: how the pieces fit

Three documents, three jobs. Here is who does what.

Form P is filed once, for the whole partnership, by the precedent partner. The precedent partner is usually the first partner named in the partnership agreement, or the active managing partner. That one person is responsible for getting Form P in on time and for giving every partner their CP30.

CP30 is the "Apportionment of Partnership Income" slip. The precedent partner issues one to each partner, and it shows your personal share: your profit-sharing ratio, any salary or bonus the partnership paid you, interest on your capital, your slice of the divisible profit or loss, and your share of the partnership's capital allowances. Think of the CP30 as the partnership's version of an EA form, the paper that tells you the exact number to declare.

Form B is yours. You take the figure from your CP30 and enter it on the partnership line of your own Form B, alongside any other income you had. If a change to the profit split happens later, the precedent partner issues an amended CP30 and you update your figure.

What counts as your partnership income

Your taxable partnership figure is not simply "my share of sales". It is a net number built from the CP30:

Salary and bonus from the partnership + interest on your capital + your share of the divisible profit − your share of the capital allowances = your statutory partnership income.

That last figure is what goes on Form B. Here is the trap that catches first-timers, and the one thing most partnership guides never mention: you do not deduct the partnership's business expenses again on your Form B. Those expenses (rent, stock, staff, utilities) were already claimed by the partnership on Form P before the profit was divided. Your CP30 share is already after expenses. Claiming them a second time on your own form is double-deducting, and it is exactly the kind of thing an audit picks up.

This is one place the app quietly protects you. In MyTaxMate, a partnership share goes in as a single net CP30 figure, and the money-out step (business expenses and capital assets) is deliberately switched off for it, precisely because those were already claimed on Form P. You can even scan the CP30 slip and let the app pull out the numbers for you to check.

A worked example

Say your CP30 for the year shows: salary from the partnership RM 24,000, interest on capital RM 1,200, your share of divisible profit RM 30,000, minus your share of capital allowances RM 3,000. Your statutory partnership income is RM 52,200.

Assume that is your only income and you claim just the automatic RM 9,000 individual relief. Your chargeable income is RM 43,200, and the tax on that (YA 2025 and YA 2026 rates) works out to RM 1,092. No RM 400 rebate here, because that only applies when chargeable income is RM 35,000 or below.

The picture makes the reassuring point that plenty of people miss: most of your income sits in the lower bands, and only the top slice is taxed at the higher rate. Claim your real reliefs (EPF, insurance, lifestyle, medical, and so on) and that RM 1,092 comes down further. Want your own number? Our free tax calculator runs the current rates.

Conventional partnership or LLP? They are taxed very differently

This is the mix-up that costs people the most, so check which one you actually are. A conventional partnership (perkongsian, registered with SSM as a partnership) is what everything above describes. A Limited Liability Partnership (LLP / PLT) is a different animal entirely, and the Form P and CP30 flow does not apply to it.

If you are an LLP, ignore the CP30 steps: your profit is taxed inside the LLP, and what you take out is generally not taxable in your own hands (with the new 2% charge on distributions above RM 100,000 a year from YA 2026). If you are not sure which you registered, check your SSM registration; a plain "Perkongsian" is the conventional kind covered by this guide.

Deadlines, and what late filing costs

There are two separate clocks, and it helps to keep them apart.

The partnership's Form P is due 30 June, or 15 July on e-Filing. Miss it and the penalty is not a percentage of tax (there is no tax on Form P). It is a fine of up to RM 20,000, or imprisonment up to six months, or both, under Section 120(1)(b) of the Income Tax Act 1967. In practice LHDN issues a compound to settle it, but it is a real offence, so the precedent partner should treat the date seriously.

Your own Form B has the same 30 June / 15 July dates, but a different penalty if you are late, because your Form B does carry tax. That is the 15% / 30% / 45% late-filing penalty on the tax owed. We cover that in detail on the missed Form B deadline guide, and the walkthrough for filing on time is in how to file Form B.

What to do next

Three concrete moves for this year. First, if you are the precedent partner, get Form P in by 15 July and hand every partner their CP30 early, so nobody is scrambling before their own Form B deadline. Second, when you fill your Form B, enter your CP30 figure on the partnership line and resist the urge to re-claim the partnership's expenses. Third, add your real personal reliefs before you decide the number is final. New to the business form? The sole proprietor guide covers the same Form B ground for a one-person business.