LHDN: Withholding Tax on Must be Remitted by End of Following Month

KUALA LUMPUR – The Inland Revenue Board (LHDN) has announced administrative changes regarding the submission of the 2% tax deduction by companies making payments to resident individual agents, dealers or distributors (ADDs) effective July 2022.

In a statement on Saturday (July 9), the agency said payees are required to make a cumulative 2% tax deduction on payments to ADDs according to the month.

LHDN also said the amount deducted should be remitted to the director-general of LHDN latest by the last day of the following month.

The 2% withholding tax for 2022 applies to ADDs which have received more than RM100,000 in monetary and/or non-monetary form in 2021 from the company making the payments.

LHDN said the company making the payments must submit Form CP107D – Pin 2/2022 in PDF form and Appendix CP107D(2) in Excel format via email to the payment centres before making the payments.

This email submission is compulsory for payments via payment counters or post.

Form CP107D – Pin 2/2022 and Appendix CP107D(2) can be accessed and downloaded from the official HASiL portal.

Any query or feedback to LHDN can be submitted through the HASiL Care Line at 03-8911 1000/603-8911 1100 (overseas), HASiL Live Chat and the feedback form at LHDN’s official portal.