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Tax Update Deferment of Payment for Small-Value Withholding Tax (WHT)

Updated: Jun 9, 2023

The Chartered Tax Institute of Malaysia (CITM) proposal to make submitting withholding tax (WHT) forms and paying WHT of Small Value for transactions that happen repeatedly less difficult administratively and more affordable to comply with has been approved by the Inland Revenue Board of Malaysia (IRBM).

With effect from August 2022, subject to compliance with the eligibility requirements, the payer may defer payment of small-value WHT instead of remitting the WHT deducted to the IRB within one month after the payment to non-resident has been received or credited. Small-value WHT is defined as WHT with a transaction value of less than RM 500.

An individual or body resident in Malaysia or conducting business in Malaysia that is required to pay WHT under Section 109 or Section 109B of the Income Tax Act 1967 and that does not exceed RM 500 per transaction for transaction that recur may submit the WHT form and pay the WHT as follows.

The above will take effect from August 2022.

The IRBM is now working on preparing the specific WHT forms that will be needed for the purposes above.

The WHT can be submitted with the Form CP37S for Interest and Royalty or Form CP37DS for special classes of income including rental for immovable property for payments made to non-residents between 1st December to 31st May by 30th June and for payment made between 1st June to 30th June by 31st December.

The payer is required to provide the state filing date on the form and to retain track of the payees for possible future use by the LHDN.

200.1 Form CP37DS - 1_2022[S109B]
Download PDF • 64KB

200.2 Form CP37S - 1_2022[S109]
Download PDF • 63KB


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