1. A mechanism that allows employer to deduct monthly tax deduction (MTD) from employee’s remuneration based on either the Schedule of MTD or other approved rules by the Director General (hereinafter referred to as the “Computerized Calculation Method”) as provided under Rule 3, Income Tax (Deduction from Remuneration) Rules 1994 (MTD Rules).

  2. MTD is intended to reduce the burden of employees to pay taxes at once calculated.

  1. The installment amount will be estimated by IRBM using CP500 and taxpayers will be notify at the beginning of each year.
  2. The payment of the instalment amount as stated in CP500 must be made within the timeframe.
  3. Taxpayer who earns other than employment income such as business, rental and royalties must pay the instalment twice a month up to 6 times commencing from March every year.
  4. CP500 for the current year of assessment can be revised before 30th June.
  5. Any request on a copy of CP500 or taxpayer who has not receive the CP500 notice by end of February may log on to MyTax or contact HASiL Contact Centre at 03-89111000.
  6. Further information on CP500 may be accessed from Tax Collection Framework 2021