KUALA LUMPUR, February 25 — The Inland Revenue Board of Malaysia has issued nearly 200,000 CP500 Tax Instalment Payment Notices involving an estimated RM1.1 billion up to January 2026, following the detection of inaccurate income reporting in Income Tax Return Forms.
The Finance Ministry said. In a written parliamentary reply to Lim Guan Eng and Chong Chieng Jen, the ministry explained that some taxpayers had misclassified part of their employment income as non-employment income, triggering the notices.
And that action is being taken to trace and cancel affected cases. The government also announced that no penalties will be imposed in 2026 on taxpayers with additional income who do not pay CP500 instalments, while advising taxpayers to update their 2025 tax returns to avoid future notices.
