LHDN allows deferment of small-value withholding tax payment

PUTRAJAYA: The Inland Revenue Board of Malaysia (LHDN) says that effective Aug 1, 2022, recurrent small-value withholding tax (WHT) payment for royalty, interest and special classes of income earned by a non-resident can be made biyearly instead of monthly.

LHDN said the provision comes under Sections 109 and 109B of the Income Tax Act 1967.

"WHT payment not exceeding RM500 per transaction is eligible for the benefit and that the "payer needs to know that WHT will be paid more than once during the six-month deadline extension”, it said in a statement on Wednesday (Sept 27).

LHDN added that the pay-as-you-earn tax can be submitted with the CP37 or CP37D form on or before June 30 for payment to non-resident between Dec 1 and May 31, or, on or before Dec 31 for payment between June 1 and Nov 30 during the year.

The payer must the state filing date in the form and keep a record of the payees for reference by the LHDN if necessary.

For more information or to give feedback, call the LHDN care line at [phone], (603) 8911 1100 (if calling from abroad), use the live chat service or fill the online feedback form on the website. - Bernama