Payment of Instalments

 Section 107B of Income Tax Act 1967

For individuals earning employment income, monthly tax deductions will be made by the employer for remittance to IRB.  These deductions are used towards settlement of tax on the current year’s income.

For individuals earning business income, instalment payments must be made based on the amount payable as shown in the notice of instalment payment issued by the DGIR, unless the estimate has been varied to “Nil” or to a lower estimate of tax payable. 

Where any instalment amount due and payable on the date specified in the notice has not been paid within thirty (30) days of the due date, the amount unpaid shall, without any further notice being served, be increased by a sum equal to ten per cent (10%) of the amount unpaid.

Source :     Inland Revenue Board, Malaysia