CP500 explained: LHDN’s tax instalment notice, and what to do with it
A CP500 is LHDN’s notice asking you to pay part of the year’s tax in advance, in six instalments. It comes from section 107B of the Income Tax Act 1967. When you later file your return, everything you paid under the CP500 counts as tax already paid: you get a refund if you paid too much, or a smaller balance if not.
Who gets one
Individuals with income other than a salary — business, rental, interest, royalties and the like (s.107B(1)). Tax on a salary is left out, because it is already taken every month through PCB.
How much, and when
LHDN works the amount out from the tax you owed for the year before, leaving out the tax on any salary (s.107B(2); LHDN Tax Collection Framework, 2021). There are six instalments, every two months, from March to the following January. For YA 2026 the due dates printed on LHDN’s CP502 form are 1 March, 1 May, 1 July, 1 September and 1 November 2026, and 1 January 2027.
Paying it
Pay on ByrHASiL, inside MyTax, through FPX online banking, using the bill number on your notice; individual instalments use payment code 084 (LHDN payment page). You have 30 days from each due date. An instalment still unpaid after that is increased by 10% of the unpaid amount (s.107B(3)).
If you think it is wrong: form CP502
You can ask LHDN to change your instalments with form CP502, up to twice a year. For YA 2026, the first request is due by 30 June or 31 October 2026, and the second by 31 October 2026; later requests are not considered (CP502 notes, YA 2026). The new instalments start from the next one after you send it. Be careful about asking for too little: if your final tax is more than 30% above the amended instalments, 10% is added to the part above 30%, with the tax on any salary left out first (s.107B(4)).
YA 2026: the penalty concession
In a media statement on 5 January 2026, LHDN said individual taxpayers who received a CP500 will not be penalised in 2026, while still encouraging voluntary payment to lighten the balance at filing time. The statement speaks mainly of people with a salary who also have other income; whether it covers someone whose income is only from a business is not stated in so many words, so check with LHDN before relying on it. If you have only a salary and received a CP500, LHDN’s statement of 31 December 2025 says you may send form CP502 with your EA form to mejabantuanCP500@hasil.gov.my.
At filing time
What you paid under the CP500 goes in your return as tax already paid for the year. LHDN may also use a refund it owes you to pay instalments that are due (s.111(4A), as amended by the Finance Act 2025). The notice is usually sent at the start of the year; if you expect one and have none by the end of February, check MyTax or call the HASiL Contact Centre on 03-8911 1000 (LHDN instalment page).
This article is general information, not tax advice for your specific situation. Figures refer to YA 2025 and cite LHDN's official sources; rules can change between years.
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