CP 500 Notice of instalment payment

Who will receive the notice of instalment payment (CP 500)?

Normally, IRB will issued CP 500 (estimate tax payable based on the tax assessed in the preceding year) before 1 February each year to individuals other than individuals who receive employment income and which included 6 bimonthly instalment.

If taxpayers disagree with the IRB estimated tax payable, taxpayers may apply to revise the instalment payments not later than 30 June. However, if the final tax payable exceeding the revision estimate by an amount exceeding 30% of the tax payable, the difference exceeding the 30% will be subject to a penalty of 10%. (Suggestion: Don't revised the tax payable unless you are certain about the final tax payable.)

Why those taxpayers received employment income received CP500 recently?

1. The taxpayers may have other income such as income from business, rentals and commissions from direct selling, unit trust or insurance.

2. Error in the previous year tax return form, the taxpayers have wrongly input their dividends, bonuses or pensions in the other income column instead of the salary column. Which have cause the system automatically captures the data on the other income and thus, the taxpayers will be issued the CP 500 notices

IRB urge those with a fixed salary, but without other incomes, should go to their assessment branch to have the notice cancelled.

The Star : Get CP 500 notice cancelled if you don’t earn extra income