Taxpayers behind on CP500 won’t be barred from flying yet, says deputy finance minister

KUALA LUMPUR, Nov 11 — Malaysia's Deputy Finance Minister Liew Chin Tong clarified on Monday that non-payment of CP500 tax instalments will not result in an overseas travel ban for taxpayers. He emphasized that a taxpayer's actual tax liability is only determined after they submit their Income Tax Return Form (BNCP) for the relevant assessment year.

Liew stated during Question Time in the Dewan Rakyat that failure to settle CP500 instalments does not lead to a travel ban, as CP500 is not a final tax assessment. The actual amount of tax payable will be recalculated based on the BNCP, deducting any CP500 payments already made. A CP500 form is issued to non-salaried or self-employed individuals, and if a balance remains after recalculating the tax, non-payment within the deadline may result in an outstanding tax debt.

Malaysian law allows for travel restrictions through the Inland Revenue Board and Immigration Department for individuals or company directors with outstanding tax arrears, but only if they violate specific sections of the Income Tax Act 1967 and Real Property Gains Tax Act 1976. Liew emphasized that non-payment of CP500 instalments alone does not trigger an immigration travel ban.