“Why only now? Last year no issue, suddenly this year I kena CP500?”

If you earn rental income besides business income, don’t be surprised when CP500 shows up in your inbox.

LHDN confirmed the rule has always been there. Last time maybe the system didn’t trigger, this year it did.

Congratulations, you’ve officially been noticed.

What is CP500?
It’s LHDN’s “Notis Bayaran Ansuran” … an instalment payment scheme for those with rental or business income.

Instead of paying tax in one big lump sum at filing, CP500 splits it into six instalments : March, May, July, September, November, and January.

How it works
The amount is estimated from your previous year’s tax return. Each instalment must be paid within 30 days of the due date, otherwise LHDN slaps a 10% penalty. Remember, CP500 is not an extra tax.

It’s just advance payment, which will be set off against your final bill. Overpay? You’ll get a refund.

Can you revise CP500?
Yes, with Form CP502 by 30 June or 31 October. But if you under-declare by more than 30%, another 10% penalty applies.

Final takeaway
CP500 is nothing new. Treat it as a way to spread your tax burden and avoid surprises during filing season.

Read the full content in our blog
https://www.ktp.com.my/blog/cp-500-include-rental/10sept2025