Guide to Tax Installments Notice (CP500) and Revision through CP502

What is CP500?

CP500 is a tax installment notice issued by the Inland Revenue Board (IRB) of Malaysia to individuals who have business income. This notice outlines your estimated tax payable for the current year, which is generally based on your previous year’s tax assessment. The payments are divided into six bi-monthly installments to help you manage your tax obligations throughout the year instead of paying a lump sum.

How to Check Your CP500 ?

You can check your CP500 notice in two ways:

1. Through Email

• • IRB sends CP500 notices via email
  • Check your registered email inbox

1. Through MyTax (ezHASiL) Portal

• • Visit MyTax Portal (https://mytax.hasil.gov.my)
  • Navigate to ezHasil Services
  • Select e-Billing
  • View your CP500 under Tax Estimation Advance Bill

What Happens If You Don’t Pay Your CP500?

Failing to comply with the CP500 payment schedule can have serious consequences:

• A 10% penalty will be imposed on any outstanding installment amount
• IRB may initiate legal proceedings for tax recovery
• You may face travel restrictions

Please refer to our step by step guide how to make tax instalment payments using BYRHASIL and e-Billing. 

Can You Revise Your Tax Estimates?

Yes, if you expect your current year’s income to be lower than the previous year, you can apply to reduce your tax installments through Form CP502.
Here are the key points:

1. Submission Deadlines 
   • First amendment: by 30th June/31st Oct 2024
   • Second amendment: by 31st Oct 2024
2. Important Note on Tax Revision
   • If your final tax payable exceeds your revised estimate by more than 30%, a 10% penalty will be imposed on the excess

How We Can Help ?

To ensure accurate tax estimation and avoid penalties, we can assist you with:

• Reviewing your current year’s financial position
• Preparing provisional tax computations
• Determining an appropriate revised tax estimate
• Preparing and submitting the CP502 form on your behalf
• Monitoring your tax position throughout the year

Contact us for professional assistance in managing your tax installments more effectively and ensuring compliance with IRB requirements.