The Inland Revenue Board has issued nearly 200,000 CP500 notices for RM1.1 billion in estimated taxes, with the government taking action to cancel notices for those who filed incorrectly.
KUALA LUMPUR: The Inland Revenue Board has issued nearly 200,000 Tax Installment Payment Notices (CP500) to taxpayers with an estimated tax amount of RM1.1 billion, up to January 2026.
This was revealed by the Ministry of Finance in a parliamentary reply published today.
The ministry acknowledged that some taxpayers who only have employment income have also received the CP500 notices.
An IRB review found these taxpayers made inaccurate reporting in their Income Tax Return Form, reporting part of their employment income as income from other sources.
Action is being taken to trace and cancel the CP500 notices for these affected taxpayers.
The reply was in response to questions from Lim Guan Eng and Chong Chieng Jen regarding the basis for issuing CP500 forms.
The MPs had also asked about the number of taxpayers involved and the total amount expected to be collected.
For taxpayers who genuinely have income other than employment, the government has decided not to impose a penalty if they do not make the CP500 installment payment throughout 2026.
Taxpayers are also advised to update their income reporting information in the 2025 ITRF to avoid receiving CP500 notices in the future.
