Taxpayers may apply for tax settlement of tax arrears be made through their 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
Balance of Tax Payment
- Taxpayers with no business income
A comparison should be made between the amount of MTD and tax payable. If the MTD amount is insufficient, hence the amount difference must be made to IRBM not later than the year following year of assessment such below:
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- Manual submission of ITRF is by 30th April
- e-Filing submission of ITRF is by 15th May
- Taxpayers with business income
The assessment shall be made between CP500 instalment and tax payable. If the instalment amount (CP500) is insufficient, the amount difference must be made to IRBM not later than the year following year of assessment such below:
- Manual submission of ITRF is by 30th June
- e-Filing submission of ITRF is by 15th July
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
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 Instalment supporting documents :
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 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 from one of them according to the ratio of their respective total income.