How to pay Withholding Tax? | Can Withholding Tax pay by online?

How To Pay Withholding Tax?

All payments for royalties and special class of income can be made via: Telegraphic transfer, Interbank Giro, and Electronic Transfer.

How to pay Facebook, google 8% withholding tax?

If you are running digital advertising campaigns in Malaysia specifically on Google, Facebook or LinkedIn, you might want to pay attention to the Withholding Tax (WHT).

Instead of the standard 10% WHT required for royalty, you just need to factor in 8% WHT for royalty payment to Singapore and Ireland under the Double Taxation Agreement (DTA) scheme for Google, LinkedIn billed from Singapore, Facebook invoiced from Ireland.

In order to entitle for 8% WHT, you need to submit Certificate of Residence (COR), also known as Tax Residency Certificate (TRC), as a supporting document. This is to prove that Google, LinkedIn is a Singapore tax resident and Facebook is an Ireland tax resident.

Do take note that COR is only valid for a year so you need to have the copy for every year if you are claiming for 8% WHT.

You can download the COR free from:

How to submit & make payment for withholding tax?

  • All payments for royalties and special class of income can be made via:
    Telegraphic transfer, Interbank Giro, and Electronic Transfer.
  • Urgent payment (where the payee’s tax reference number is unknown) can be made directly to:

Director
Non Resident Branch
Withholding Tax Unit
7th Floor, Block 8
Government Office Complex
Enforcement for Compliance

  • The payment must be accompanied with the relevant payment forms, along with the invoices issued by the non-resident payee and copy of the payment documents as proof.
  • The type of payment forms for royalties are CP37 while the payment form for special classes of income is CP 37D.
Payment Type Income Tax Act 1967 Withholding Tax-Rate Payment Form
Royalty Section 109 10% CP 37
Special classes of income: Technical fees, payment for services, rent/payment for use of moveable property Section 109B 10% CP 37D

Download forms here:
CP37 Form
CP37D Form

Websites:
e-CP37
e-CP37D

  • All payment forms must be completed with the Malaysian tax reference number for the payer, payee, as well as the payee’s country of origin.
  • If a payer does not have the tax reference number, you may get the number by sending in a request for the number from:

Director
Non Resident Branch
Customer Services Unit
3rd Floor Left, Block 8
Government Office Complex
Jalan Duta, 50600 Kuala Lumpur

How to pay withholding tax Malaysia online?

Step 1:

Make the online transfer, the payer is required to key-in the IRB’s (recipient) company registration no. as follows:

Bank Account Number : 8000 7669 57
Beneficiary (Payable To) : Ketua Pengarah Hasil Dalam Negeri
Name & Address of the Bank :
CIMB Bank Berhad
Cawangan Jalan Tunku Abdul Halim Tingkat Bawah, Blok 8, Kompleks Pejabat Kerajaan, 50480 Jalan Tunku Abdul Halim, Kuala Lumpur, Malaysia
Recipient's Company Registration No. : GB0000010X
Swift Code (For Telegraphic Transfer RENTAS Only) : CIBBMYKL

Step 2:

Upon payment of the WHT, payer is required to provide the following documents to the IRB:

  • The completed WHT form (CP37/CP37A/CP37D/CP37E/CP37F/CP37G/CP147);
  • Copy of invoice from the non-resident payee;
  • Copy of remittance slip / proof of payment to the non-resident payee; and
  • TT, IBG / EFT transfer slip to prove that the payment has been credited to the IRB’s CIMB account.

Step 3:

The above documents must be sent to IRB office at Jalan Tuanku Abdul Halim, Kuala Lumpur via fax at 03-62019637 on the transaction day or email to the following officers:

When should I pay withholding tax in Malaysia?

Within 1 month from the date you make the payment to either Google or Facebook, most likely you need to make withholding tax payment every month or at least bi-monthly.

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