1 April 2022 is the first due date to remit the 2% withholding tax payment to the Inland Revenue Board of Malaysia (“IRBM”) under the new Section 107D of the Malaysian Income Tax Act, 1967 (“MITA”). Under this new provision, a company is required to withhold 2% withholding tax on gross monetary payments made to the agents, dealers and distributors, and the company shall remit the amount withheld to the IRBM within 30 days from the date of payment.
The new Section 107D withholding tax provision is effective from 1 January 2022. Since the IRBM has agreed to defer the remittance of withholding tax until 31 March 2022, all companies will be allowed to remit the 2% withholding tax to the IRBM from 1 April 2022 onwards, without any imposition of penalty.
Join our webinar to discover the salient points of the new Section 107D as well as how and when the Section 107D may be applicable to your company.