A Personal Finance Blog for Malaysian: CP500 Income Tax Installment

Thursday, February 23, 2012

CP500 Income Tax Installment

Form CP500 for Year of Assessment 2012 (YA2012) has been sent out to taxpayers recently by Inland Revenue Board (IRB) in February 2012.

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)

Please take note that, penalty applies if

  1. Forgot to serve installment on time
  2. Didn't revise the estimate (using Form CP502) and actual tax payable is higher than estimate by the formula (CS-AC)-(30% x CS)
CS - Cukai Sebenar
AC - Anggaran Cukai dipinda

How to do revision?
  1. Must estimate reasonable accurate your final tax at least 7 months in advance before end of the year. Example for YA2012 (1.1.2012 to 31.12.2012), you must estimate total tax payable by June 2012.
  2. Must fill up Form CP502 (attached together with CP500 when IRB post to you)
  3. Must furnish the CP502 to IRB before 30.6.2012 (in respect of YA2012)

I sincerely believe most taxpayers are not well educated or too busy to bother the tax compliance and administration matter. For those having extra income, you either learn hard or pay someone to help you because the duty and compliance obligation fall on your shoulders. One mistake can be a costly "penalty".

More news on CP500


  1. Just received YA2013 CP500 last week.... payment time.

    How many country collect tax the citizen in advance like Malaysia?

    1. May I ask if I can opt to pay lumpsum? It is very troublesome to pay installments as I dont live in Malaysia.

  2. Just pay total. Be sure it tags to the YA2013 you wanted to pay for.

    LHDN system will capture the total.

  3. Thanks for your reply! Regarding the estimate, does it mean that I should forecast slightly higher to avoid penalty ie making sure my actual tax payable for 2013 is lower or equal than my forecast?

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