PETALING JAYA: Individual taxpayers who have received Instalment Payment Notices (CP500) will not be subjected to penalties in 2026, says the Inland Revenue Board (LHDN). However, they are still advised to update their income reporting in the ITR for AY 2025 to avoid receiving CP500 instalment notices in the future. “We will also contact affected taxpayers to clarify any income reporting errors in previously submitted ITRs,” it added. For taxpayers seeking to revise their CP500 instalment amounts via Form CP502, LHDN said that any first revisions must be submitted by June 30, 2026, and any second revisions by Oct 31, 2026. On Jan 5, Prime Minister Datuk Seri Anwar Ibrahim announced a penalty-free period throughout 2026 for unintentional errors in taxpayers' CP500 filings.

Source: The Star January 05, 2026 11:50 UTC