(Update) 2% Withholding Tax on Commission to Agents

(Update) 2% Withholding Tax on Commission to Agents
Payer:
• Company pays monetary commission to the individual agent, dealer and distributor
• Company remits the withholding tax to IRB w̴i̴t̴h̴i̴n̴ ̴3̴0̴ ̴d̴a̴y̴s̴ ̴f̴r̴o̴m̴ ̴p̴a̴y̴m̴e̴n̴t̴ ̴d̴a̴t̴e̴ by end of following month
Payee:
• Individual resident
• Received more than RM100k of commission whether in monetary or otherwise (such as accrual) from the same company in the calendar year 2021
• Exclude the commission of employees reported in Form E
• Income tax payable can be deducted by withholding tax
Payments of Withholding Tax
The payments must submit
1. Form CP107D — Pin 2/2022 in PDF form and
2. Appendix CP107D(2) in Excel format via email to the payment centres before making the payments.
This email submission is compulsory for payments via payment counters or post.
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Kuala Lumpur Payment Counter
pbkl-cp107d@hasil.gov.my
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Kuching Branch
pbkc-cp107d@hasil.gov.my
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Kota Kinabalu Branch
pbkk-cp107d@hasil.gov.my
Penalty:
• 10% penalty if the payer fails to remit 2% to IRB within 30 days
• Commission is not allowed for tax deduction
Further Reference
Read our past post on withholding tax on commission to agents :
1. (Latest update) Withholding Tax on Payments to Agents dated on 21.04.2022
https://bit.ly/3uFIQNj
2. Withholding Tax on Payments to Agents dated on 17.03.2022
https://bit.ly/3L3JzOB
3. 2% withholding tax on commission dated on 30.12.2021
https://bit.ly/3hRrk20
4. 预算案 2022 dated 19.11.2021
https://bit.ly/3tKU7dM
5. Budget 2022 - SME edition dated on 18.11.2021
https://bit.ly/3IWhAiR
Source
IRBM PEMAKLUMAN PINDAAN PENGOPERASIAN POTONGAN CUKAI 2%
OLEH SYARIKAT PEMBAYAR KEPADA EJEN, PENGEDAR ATAU
PENGAGIH (INDIVIDU PEMASTAUTIN) MULAI JULAI 2022 Dated 9/7/2022
https://bit.ly/3apJqrL
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