KUALA LUMPUR, Jan. 5 -- The Inland Revenue Board of Malaysia (LHDN) has announced that individual taxpayers who receive Instalment Payment Notices (CP500) will not be penalised for non-payment for the Year of Assessment (YA) 2026.

The decision follows the government's agreement to grant a transition period for taxpayers to adapt to CP500 requirements, particularly those who earn income from both employment and non-employment sources such as rent, interest, or royalties, it said in a statement.

During this period, while no penalties will be imposed, LHDN said it is encouraging taxpayers to make voluntary CP500 payments to reduce the burden of a large final tax payment when filing their Income Tax Return Form (BNCP).

LHDN also clarified ...