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Deferment of withholding tax (WHT) form submissions and payments for recurring small-value WHT transactions
The Inland Revenue Board (IRB) has issued a letter dated 12 August 2022 to the Chartered Tax Institute of Malaysia stipulating that for ease of administration and to reduce compliance costs for taxpayers, effective August 2022, taxpayers may defer their submissions of WHT forms and payments for small-value WHT (defined below), subject to conditions.
The submission of WHT forms and remittance of WHT payments may be made once for every six-month period as outlined below:
|
Payments made to non-residents |
Due date for the submission of WHT forms and remittances |
|---|---|
|
1 June to 30 November |
By 30 December that year |
|
1 December (in the previous year) to 31 May (of the current year) |
By 30 June of the current year |
Note: Whilst going-forward the deferred submissions for WHT would apply based on the schedule above, for the year 2022 the deferment will be effective from August 2022.
The deferment applies to WHT on royalty and interest (Section 109 of the Income Tax Act 1967 (ITA)), and special classes of income under Section 4A of the ITA (Section 109B of the ITA), on condition that the:
- Amount of the WHT does not exceed RM500 per transaction, and
- Taxpayer is aware that the relevant WHT payment will be made more than once within the stipulated period
The IRB will be issuing specific WHT forms for this purpose.