PUTRAJAYA: The Instalment Payment Notice (CP500) issued to taxpayers in December 2025 is based on information reported in the Income Tax Return Form (ITRF) submitted to the Inland Revenue Board (LHDN). In a statement on Wednesday (Dec 31), LHDN said CP500 is issued only if taxpayers report income from both employment and non-employment sources in accordance with Section 107B of the Income Tax Act 1967. It added that the board has received complaints and feedback from taxpayers who received CP500 despite having only employment income. "Part of the employment income was reported as income from dividends, interest, rent, royalties, pensions, annuities and any other gains or profits," it said. For individual taxpayers who have only employment income but have received CP500, LHDN said they may submit the Application Form for Amendment of Instalment Payments (CP502).

Source: The Star December 31, 2025 16:41 UTC