PETALING JAYA: Individual taxpayers who have received Instal­ment Payment Notices (CP500) will not be subjected to penalties this year, says the Inland Revenue Board (LHDN). It said this is to give individual taxpayers with income from employment and non-employment sources, such as rental, interest and royalties, time to properly comply with CP500 requirements for the 2026 Assess­ment Year (AY). “This measure is in line with the government’s decision to provide a transition period for these individual taxpayers. “As such, during this transition period, no penalties will be impo­sed even if taxpayers do not make CP500 instalment payments. However, these taxpayers are still advised to update their income reporting in the ITR for AY 2025 to avoid receiving CP500 instalment notices in the future.

Source: The Star January 06, 2026 02:36 UTC