Effective July 2022, The Inland Revenue Board “LHDN” has announced on the changes in the submission of the 2% tax deduction by companies making payments to resident individual agents, dealers or distributors. The changes are as follows:
The payee (the Company) has to make a 2% tax deduction to the EPP for each deduction transaction cumulatively by month;
The amount of the 2% tax deduction must be remitted to Director General of Inland Revenue (DGIR) no later than the day last of the following month;
The payee (the Company) is required to submit Form CP107D – Pin 2/2022 in PDF format and Appendix CP107D (2) in Excel format by email according to the payment center before payment made. (This email submission is compulsory for payments via payment counters or post.)
Payment Center | Email Address |
Pusat Bayaran Kuala Lumpur | pbkl-cp107d@hasil.gov.my |
Cawangan Kuching | pbkc-cp107d@hasil.gov.my |
Cawangan Kota Kinabalu | pbkk-cp107d@hasil.gov.my |
Recap:
Withholding tax of 2% is applicable on payments in monetary form made to agents, dealers or distributors who are individual residents and who have received more than RM100,000 of such payments in monetary of non-monetary form from the same Company in the immediately preceding year of assessment.
All types of payments (e.g., commissions and incentives) in the form of monetary resulted from sales, transactions or schemes are subject to withholding tax. Payments in the form of credit notes, contra and discounts are not subjected to withholding tax.
Source: LHDN Media Updates HASIL/2022/07/09-45
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