TAXPAYERS who fail to pay their CP500 income tax instalments cannot be barred from travelling overseas, as the payments are not considered a final tax assessment, Deputy Finance Minister Liew Chin Tong stated today.
Liew said a taxpayer's actual liability could only be determined after the submission of the Income Tax Return Form (BNCP) for the relevant assessment year, when payments already made under CP500 would be deducted from the final amount payable.
In a written parliamentary reply to Chow Yu Hui (PH-Raub), Liew said travel restrictions could only be imposed over unpaid income tax or real property gains tax liabilities under Section 104 of the Income Tax Act 1967 and Section 22 of the Real Property Gains Tax Act 1976.
Any remaining tax balance would be classified as arrears if the taxpayer failed to settle it within the stipulated period after the final liability had been determined.
He added the Malaysian Immigration Department could impose overseas travel restrictions on individuals blacklisted for outstanding debts and taxes owed to government agencies, including the Inland Revenue Board (LHDN), Royal Malaysian Customs Department and Insolvency Department.
LHDN works with the Immigration Department to prevent individuals and company directors who default on their tax obligations from travelling overseas, even after appropriate reminders have been issued.
Taxpayers were advised to check their outstanding tax status through the MyTax portal and verify any travel restrictions through the Immigration Department's website before making overseas travel arrangements.
The Deputy Minister said such restrictions were enforcement measures to recover outstanding government revenue and were not intended to deny individuals their freedom of movement. - November 11, 2026
