Form CP500

Good afternoon from Wan & Company! We have gotten some queries about CP500 and would like to share some important facts about this Form especially to individual with business income. Please refer to the following:

Tax Installment Scheme – Form CP500

• Form CP500 is a tax installment scheme for a taxpayer that has income other than employment income such as business income, rental income and royalties.
• The payment for Form CP500 should be made within 30 days from the date payable (Tarikh Kena Bayar).
• Failure to remit the tax installment (if any) by the filing deadline will result in a 10% penalty being imposed on the outstanding balance. The penalties are to be self-assessed and paid to the Malaysian Inland Revenue Board (MIRB).
• For individual that did not receive the Form CP500, they can visit or call LHDN Branch that handle the file or call the Hasil Care Line at 1-800-88-5436.
• Form CP500 can be revised by completing the Form CP502 and send it to the respective LHDN Branch before 30 June for the current year of assessment.
• However, if the revised tax installment (Form CP502) is 30% lower than the actual tax payable, the difference will be subject to a penalty of 10%.
• The formula to calculate the amount of tax to be increases is as follows: = [(Actual tax payable - Estimated tax payable) - (30% x Actual tax payable)] x 10%