Tax Updates: Implementation of e-TT system for Withholding Tax (WHT)



Inland Revenue Board of Malaysia (IRBM) has issued a media release announcing the introduction of a new electronic tax payment system on 1st April 2022. The new e-Telegraphic Transfer (e-TT) System will be introduced for the payment of:

  1. Income Tax

  2. Petroleum (Income Tax)

  3. Real Property Gain Tax (RPGT)

  4. Compound Payment

  5. Income tax paid by Foreign Artist (Public Entertainer)

  6. Withholding Tax (WHT)


How to submit and 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.

  • 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 when the payment form for special classes of income is CP 37 D.

Note: 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.



How are you going to pay through e-TT system?


There are some steps to access the e-TT system. The Virtual Account Number (VA) will be generated by the e-TT system as a means of payment identification. The actions listed below must be followed to access the e-TT system by taxpayers who want to pay tax using TT from both inside and outside of Malaysia:

  1. Visit the My Tax Portal at https://mytax.hasil.gov.my

  2. Click on ezHasil Services > submenu e-TT

  3. Fill up the required payment information to generate the Virtual Account (VA) number

  4. Use the VA number as the payment account number (i.e., payment identification) when making payment through:

  • TT at the bank counter

  • Electronic banking portal

  • ATM

5. Each Virtual Account (VA) is limited to one transaction

NOTE: payment by cash and cheque is not allowed.


When should I pay WHT in Malaysia?


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


Important Info:

  • LHDN’s CIMB account 800 766 957 is no longer in use

  • You do not have to key in the letter C if your tax reference number contains this alphabet, add a “0” at the end of your tax reference number and make sure that your reference number contains 11 digits.

  • You may obtain the supporting documents by emailing: WHToperasi@hasil.gov.my



References

https://www.sql.com.my/accounting-software/how-to-pay-withholding-tax/


https://www.hasil.gov.my/en/company/tax-payment/payment-method/


https://www.ccs-co.com/post/implementation-of-e-tt-system-for-tt-eft-ans-interbank-firo-ibg-payment-methods

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