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LHDN Asking For Instalments? Breaking Down The CP500.
39 mins·11:00, 9 Feb 2026
LHDN Asking For Instalments? Breaking Down The CP500.
39 mins
·
11:00, 9 Feb 2026
·
Recommended
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Guest: Renganathan Kannan (Executive Director), TRATRAX
Drive Grab, freelance, or earn side income? LHDN wants their tax upfront.
The CP500 is effectively the PCB for business (or non-salaried) income. And while LHDN has announced a penalty waiver for 2026, it is not a free pass.
Renganathan Kannan (TraTax) joins us to break down exactly what the CP500 is, the mechanics of this advanced tax scheme, who the penalty waiver is for, and why filing Form BE is a dangerous mistake for freelancers.
We discuss:
The Waiver Myth: Why Renga warns that the 2026 penalty waiver is merely a "transition period" for fixing classification errors, and not a license to ignore the taxman.
The "Salaried" Trap: Why your monthly PCB deduction doesn't cover your side hustle, and Renga’s thoughts on when a salaried employee must switch from Form BE to Form B.
The Mechanism: How the CP500 is calculated based on your preceding year's tax data and insights into the instalment schedule.
Form B vs. Form BE: Renga explains why Grab drivers, YouTubers, and freelancers are effectively "business owners" in the eyes of LHDN and must file Form B to avoid misclassification penalties.
The Rental Trap: When rental income triggers a CP500 and Renga’s breakdown of the specific "badges of trade" that convert passive rent into active business income.
The Escape Valve: How to use Form CP502 to revise your tax estimate downwards (or upwards) to avoid the 10% underestimation penalty.
Presenter: Roshan Kanesan
Producer: Roshan Kanesan
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