Following the enforcement of Section 107D of the Income Tax Act 1967, effective 1 January 2022, companies making monetary payments to Agents, Dealers, and Distributors (ADDs) must withhold tax at 2% on the gross amount of such payments.
Key compliance requirements issued by the Inland Revenue Board (IRB) on 9 July 2022 include:
Monthly WHT Calculation & Payment
- WHT must be computed monthly and remitted by the end of the following month.
Example: Payments made in August 2022 must be remitted by 30 September 2022.
Form Submission Requirement
- Submit Form CP107D – Pin 2/2022 and Appendix CP107D(2) via email to the relevant IRB payment centre before making the WHT payment.
- A copy of the email submission must be presented during payment for verification.
Email contacts for submission:
- Kuala Lumpur: pbkl-cp107d@hasil.gov.my
- Kuching: pbkc-cp107d@hasil.gov.my
- Kota Kinabalu: pbkk-cp107d@hasil.gov.my
For further guidance on compliance or help with WHT filings, feel free to contact HTL & Co. – your trusted tax advisory partner.
