Kuala lumpur: The Ministry of Finance (MoF) announced that the Inland Revenue Board (IRB) has issued nearly 200,000 CP500 notices targeting RM1.1 billion in taxes. The government acknowledges that some taxpayers, who earn only employment income, have mistakenly received these notices.

According to BERNAMA News Agency, the MoF explained that an IRB review identified inaccuracies in how some taxpayers reported their income on the Income Tax Return Form (ITRF). Specifically, portions of employment income were incorrectly reported as non-employment income. As a result, the IRB is taking steps to trace and cancel the CP500 notices for those affected taxpayers.

The MoF was responding to queries from Lim Guan Eng (PH-Bagan) and Chong Chieng Jen (PH-Stampin) regarding the issuance criteria for the CP500 installment payment form, the number of affected taxpayers, and the expected tax collection amount.

Furthermore, the ministry clarified that taxpayers with income beyond employment will not face penalties if they skip CP500 installment payments throughout 2026. It also advised taxpayers to update their income reporting in the 2025 ITRF to prevent future receipt of CP500 notices.