CP500 Instalment Scheme

What is CP500 ?

CP500 is a “Notis Bayaran Ansuran” which means “Prepayment of Income Tax by Instalment”.
issued under subsection 107B(1) Income Tax Act 1967 for taxpayer who have other than Employment Income (for salary, you have already pay tax by PCB, unless salary is low)

What next if you received CP500 Notice ?

If you receive a notice of instalment payment (CP 500) from the Inland Revenue Board, do not panic!

The notice, which states the amount, due date and number of instalments, is meant for taxpayers with earnings other than monthly salaries such as income from business and rentals as well as commissions from multi-level marketing or insurance.

Those with a fixed salary, but without other earnings, should go to the branch handling their income tax files to have the notice cancelled.

CP500 Instalment Scheme

If a taxpayer has income other than employment such as business, rental and royalties, he is required to make 6 bi-monthly instalment payments, commencing from the month of March. The instalment dates will be prescribed in the notice of the instalments to be paid (CP 500).

The amount of each instalment will be estimated by IRBM. Taxpayers who do not receive the CP 500 by end of February each year, may check at the branch where their file is located or call customer service centre at 1-300-88-3010.

Tax payers who receive the directive can apply for the instalments to be revised by filling the CP502 Form. The application should be made not later than 30th June for the relevant year.

A comparison must be made between the total of the instalments paid and actual amount of tax payable, excluding tax attributed to employment income, if any. If the instalments are insufficient, the shortfall must be paid when submitting the ITRF in the year following the year of assessment. If the total instalments paid are more than the actual tax payable, the tax payer may claim a refund of the overpayment on submitting the ITRF.

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