KUALA LUMPUR (Jan 13): The SME Association of Malaysia has urged the government and the Inland Revenue Board (IRB) to reconsider the CP500 requirement for salaried individuals and retirees, saying it creates an unfair prepayment burden and adds to cash-flow pressure and administrative complexity. CP500 applies to individuals with non-employment income such as rental or freelance earnings. He said Malaysia’s tax system should prioritise clarity, fairness and proportionality, rather than imposing excessive prepayment burdens on salaried individuals and retirees. Many retirees no longer have stable monthly income and rely on sporadic, unpredictable engagements, making advance tax instalments unsuitable. Chin said advance tax payments under CP500 force taxpayers to pay tax before income is earned or can be properly assessed, undermining fairness and certainty in the tax system.

Source: The Edge Markets January 13, 2026 08:53 UTC