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Individual

Balance of Tax Payment

Balance of Tax Payment
  1. Taxpayers with no business income
    A comparison must be made between the total Monthly Tax Deduction (MTD) that has been deducted and the actual tax payable. If the amount of MTD deducted from the salary is insufficient, the difference amount (i.e. the difference between the total MTD deducted and the tax payable) must be paid to IRBM no later than the following year after the year of assessment, as follows.
    • 30 April if the Tax Return Form is submitted manually (paper form).
    • 15 May if the Tax Return Form is submitted through e-Filing
  2. Taxpayers with business income
    For taxpayers who have business income, an assessment must be made between the CP500 instalment payments and the actual tax payable. If the amount of CP500 instalments is insufficient, the difference amount (i.e. the difference between the total CP500 paid and the tax payable) must be paid to Lembaga Hasil Dalam Negeri Malaysia no later than the following year after the year of assessment, as follows:
    • 30 June if the Tax Return Form is submitted manually (paper form).
    • 15 July if the Tax Return Form is submitted through e-Filing
Monthly Instalment

If an individual fails to pay the full tax payable for that period, the balance of tax to be paid can be reduced by monthly instalment. The procedure is by providing an appeal letter to collection unit of HASiL Office that handles his tax file before April 30th or June 30th of that relevant year. Be reminded that even the appeal for instalment was approved, late payment penalty will still be imposed

Instalment through CP38

Taxpayers may apply to settle their tax arrears through monthly salary deductions. This CP38 form regulation requires employers to make additional deductions in monthly installments from taxpayers ‘salaries (other than monthly tax deductions) against taxpayers’ income tax arrears. Employees who receive this CP38 instruction are also subject to MTD, hence they will have two (2) simultaneous salary deductions according to the period specified in the instruction.

The deadline for CP38 and MTD payments instruction is on or before the 15th of the following month.

Taxpayers with businesses and have tax arrears may also apply for tax instalment, by referring to the branches that handle their tax files.

List of Documents for Instalment Application to settle Arrears

Taxpayers are required to provide an instalment appeal letter along with relevant supporting documents such as income statement, bank statement, estimated monthly expenses and others. Taxpayers are advised to refer to HASiL Office that handles their tax files for further information.

Tax Payment for Joint Assessment

If the income of a married couple has been assessed jointly in the name of one of the spouses, then the party concerned is responsible for the payment of tax. However, in certain circumstances, the tax payable on the income of the wife or husband may be collected from one of them according to the ratio of their respective total income.