CP500: estimated tax instalments for individuals with non-salary income

What is CP500?

CP500 is an estimated tax instalment scheme. HASiL issues a CP500 Notice to individuals who receive income other than employment — such as business income, rent and royalties — as advance payments towards the estimated income tax for a year. (Source: Tax Responsibilities for Business Individuals — official HASiL slides; Form CP502.)

CP500 does not include employment income, because that income is already subject to Monthly Tax Deduction (PCB) made by the employer. (Source: official HASiL slides.)

Who receives CP500?

Individuals who receive income other than employment — for example business income (sole proprietorship, partnership, profession, freelance work), rent and royalties — usually receive a CP500 Notice. (Source: official HASiL slides.) The full list of situations and how the notice is calculated — this item still awaits official confirmation from HASiL — check again with HASiL before deciding.

When must instalments be paid?

CP500 involves 6 instalments per year (bi-monthly), starting in March: payments must be made on 01/03, 01/05, 01/07, 01/09, 01/11 and 01/01. The minimum amount for each payment is RM300, with a 30-day deferment period from the payment due date. (Source: Form CP502 — 6-instalment schedule; official HASiL slides.)

Business individuals need to report income before 30 June and make payment before 30 June (via ByrHASiL). (Source: official HASiL slides.) Specific filing dates for YA 2026 (2027 filing) — this item still awaits official confirmation from HASiL — check again with HASiL before deciding. (the 2027 BN Filing Program has not been published by HASiL).

CP500 vs PCB: what is the difference?

	CP500	PCB
For whom	Individuals with non-salary income (business, rent, royalty)	Employees who receive a salary
Who pays	The taxpayer themselves	The employer deducts from salary every month
Frequency	6 instalments per year (bi-monthly)	Monthly

(Source: Form CP502; official HASiL slides; Estimated Tax Instalment Payments page — HASiL.)

What happens if you underpay or miss an instalment?

• Instalment amendment: You can apply for an amendment via Form CP502 (Application to Amend Instalment Payment) under s107B of the Income Tax Act 1967, before or on 30 June of the year concerned. For 2026, the form also allows a special first amendment until 31 October 2026 (2026 special arrangement; the standing rule is 30 June). If the application is approved, a CP503X notice is issued; if rejected or out of time, a CP504 letter is issued. The payment due date and the number of instalments cannot be changed. (Source: Form CP502; official HASiL slides; Individual FAQ Q52.)
• Penalty if the amendment is too low: If the total instalments after amendment fall more than 30% below the tax payable (CKD), a tax increase of 10% is imposed. Formula (per Form CP502): [(CKD − AP) − (30% × CKD)] × 10%, where AP = Total Amended Instalment Payments. (Source: Form CP502.)
• Late payment: Late payment may be subject to an increase of 10% of the tax payable. (Source: official HASiL slides.)
• Late/failure to submit the form: An increase of 15% (up to 12 months), 30% (exceeding 12 to 24 months) or 45% (exceeding 24 months) of the amount of tax imposed. (Source: official HASiL slides.)
• The full statutory penalty mechanism under s107C of the ITA 1967 — this item still awaits official confirmation from HASiL — check again with HASiL before deciding.
• 2026 penalty concession: In a media statement of 5 January 2026, HASiL stated that "individual taxpayers who receive an Instalment Payment Notice (CP500) will not be penalised in 2026" (following the 2026 New Year address). The official title of the statement states its scope as individuals receiving employment income. (Source: HASiL media statement, 5 January 2026.)
• The concession above is for 2026 only; whether a similar concession applies for 2027 — this item still awaits official confirmation from HASiL — check again with HASiL before deciding.

How to pay

Payments can be made via ByrHASiL (HASiL's official payment channel). (Source: official HASiL slides; HASiL Individual FAQ Q45.)

Relationship with Form B

Business income is reported using Form B, and business individuals report and pay before 30 June. (Source: HASiL Individual FAQ Q11; official HASiL slides.) CP500 instalments are early payments of estimated tax; the final reconciliation mechanism between instalments and actual tax — this item still awaits official confirmation from HASiL — check again with HASiL before deciding.

Frequently Asked Questions (FAQ)

Q. Is CP500 the same as PCB? A. No. PCB is the monthly tax deduction made from salary by the employer; CP500 is instalments for individuals with non-salary income. Further details of both schemes — this item still awaits official confirmation from HASiL — check again with HASiL before deciding.

Q. I am a salaried employee. Will I receive a CP500 Notice? A. CP500 is an early-payment instrument for non-salary income. The 2026 penalty concession mentions individuals receiving employment income together with a CP500 Notice; full eligibility to receive the Notice — this item still awaits official confirmation from HASiL — check again with HASiL before deciding. Refer to HASiL for your specific situation.

Q. I missed an instalment payment. What are my options? A. Refer to HASiL as soon as possible. You can apply for an amendment via Form CP502 (before or on 30 June; for 2026, the special first amendment is until 31 October 2026). If an amended instalment falls more than 30% below the tax payable, a 10% increase is imposed; late payment may also be subject to an increase. The s107C mechanism — this item still awaits official confirmation from HASiL — check again with HASiL before deciding.