Deadlines & penalties · Dealing with LHDN · Instalments
Can't pay your tax bill? The LHDN instalment plan.
You filed your return, the tax due is more than you have in the account, and the deadline has passed or is about to. First thing: do not go quiet on LHDN. There is an official, online way to pay an income tax bill in pieces, called e-Ansuran. If you can't pay in one go, apply for it inside MyTax and split the balance over 2 to 6 monthly instalments, with automatic approval and no documents. The bill doesn't shrink, the 10% late-payment increase still applies once you're late, but an approved plan keeps you paying instead of being chased.
Two things are true at the same time when you can't afford your tax. You still owe every ringgit, plus any late-payment increase that has kicked in. And LHDN genuinely prefers to collect it slowly than to send your file to enforcement. Those two facts aren't in conflict. The instalment route exists precisely so that a real cashflow problem doesn't turn into a bigger, more expensive one. The mistake that costs people is silence: not filing, not replying, not paying. Your assessed tax sits on your LHDN account and grows. If you also missed the filing deadline, file first, then deal with paying.
What is e-Ansuran?
e-Ansuran is LHDN's online instalment application, built into the MyTax portal (MyTax is LHDN's e-Filing site, the same one you file your return on). It lets you pay an assessed balance of tax (baki cukai) or older arrears (tunggakan cukai) across 2 to 6 monthly instalments instead of in one lump sum.
The rules are simple. The amount you put on a plan must be above RM 300, you choose between two and six months, and approval is automatic with no supporting documents for eligible income tax balances. Individuals can use it, not just companies. It went live for online applications on 5 March 2025, replacing the old routine of writing a letter to your LHDN collection unit.
How do I apply for e-Ansuran?
Log in to mytax.hasil.gov.my with your identity card number and password, pick your Individu role, then open the e-Ansuran service from the menu. Select the outstanding balance you want to spread, choose how many months you need (two to six), and submit. Because approval is automatic, you'll normally see your instalment schedule straight away. From there you pay each instalment through the usual channels (ByrHASiL, FPX, or your bank) by the dates on the schedule. Keep to them, because a missed instalment can put the whole balance back into collection.
Does the late-payment penalty still apply?
Yes, and this is the part the how-to guides skip. e-Ansuran changes how you pay, not how much. The day after the payment deadline, Section 103 of the Income Tax Act 1967 adds 10% to your unpaid tax. If the balance is still outstanding 60 days later, a further 5% can apply on what's left. We break that 10% and 5% late-payment penalty down in full separately. Those increases are folded into the balance you then spread over instalments, so a plan doesn't erase them.
That means the cheapest outcome is still to clear the tax within 60 days if your cashflow can stretch to it, because that avoids the extra 5%. If it genuinely can't, e-Ansuran is the safe way to pay the rest off in order, without the bill escalating into enforcement.
What to do when you can't pay
You can pay within 60 days
Pay it now and you skip the extra 5% increase.
You can't pay in one go
Apply for e-Ansuran, split it over 2 to 6 months, stay onside.
You ignore it
10% + 5% increase, then LHDN enforcement.
Worked example · RM 6,000 you can't pay
The RM 6,600 is the same money either way. e-Ansuran just turns an impossible single payment into six you can plan around. And if you can find the cash to clear it inside 60 days, you skip the further 5% (another RM 300 here), so pay it down as fast as your budget allows.
Isn't this the same as CP500?
No, and it's an easy mix-up. CP500 is a bill LHDN sends before you file, asking you to pre-pay this year's estimated tax in six bi-monthly instalments (it goes to people with business or other non-employment income). e-Ansuran is for a bill you've already been assessed on and can't pay in one shot. If your problem is that your CP500 instalment is set too high for what you'll actually earn, you don't use e-Ansuran, you revise the estimate with Form CP502 by 30 June. Different form, different problem. e-Ansuran is for the balance that's already due.
What happens if you just ignore it?
The bill doesn't quietly go away, it grows and moves to LHDN's collection side, alongside the other fines LHDN can charge. On top of the 10% and 5% increases, LHDN can pursue the debt through civil action, and for serious unpaid tax it can issue a stoppage order that bars you from leaving the country until you settle. None of that lands on someone who is on an agreed instalment plan and keeping to it. That is the real value of e-Ansuran: it isn't just convenience, it's protection.
What to do next
Check your exact balance by logging in to MyTax and looking up what you owe in e-Lejar, your online tax ledger. If you can pay within 60 days, do that first, it's the one move that saves you the extra 5%. And if you can't, apply for e-Ansuran and spread the balance over up to six months, then pay every instalment on time.
Frequently asked questions
Can individuals use e-Ansuran, or is it only for companies?
Individuals can use it for income tax, including company directors in their personal capacity. It covers your assessed balance or older arrears, applied for through your own MyTax login.
Does applying for e-Ansuran cancel the penalty?
No. It doesn't waive the 10% or the further 5% under Section 103. Those increases stay and are included in the balance you spread. e-Ansuran changes the schedule, not the amount.
What's the smallest amount I can put on a plan?
The application amount has to be above RM 300, spread over 2 to 6 months. Smaller balances are meant to be settled in one payment.
Do I need documents or wait for approval?
For eligible income tax balances, approval is automatic and you don't submit any supporting documents. You'll usually get your instalment schedule as soon as you apply.
Can I pay part now and instalment the rest?
Yes, and it's a good idea. Paying down whatever you can first lowers the balance you spread, and the smaller it is at day 60, the less any further 5% costs you.
