Income Subject to CP500 Installment Scheme
21/03/12 09:51 Filed in: Taxation
CP500 Installment Scheme
If a taxpayer has income other than employment such as business, rental and royalties, he is required to make 6 bi-monthly installment payments, commencing from the month of March. The installment dates will be prescribed in the notice of the installments to be paid (CP 500). The amount of each
installment will be estimated by IRBM. Taxpayers who do not receive the CP 500 by end of February each year, may check at the branch where their file
was located or call customer service centre at 1-300-88-3010.
Tax payers who receive the directive can apply for the installments to be revised by filling the CP502 Form. The application should be made not later than 30th June for the relevant year.
A comparison must be made between the total of the installments paid and actual amount of tax payable, excluding tax attributed to employment income, if any. If the installments are insufficient, the shortfall must be paid when submitting the ITRF in the year following the year of assessment. If the
total installments paid are more than the actual tax payable, the tax payer may claim a refund of the overpayment on submitting the ITRF.