2% Witholding Tax for Agents
1. Deduction
- Commission in monetary form only
- Rate: 2% on each cash payment at gross amount
- Remit the deduction to DGIR within 30 days
- New S107D WHT
2. Penalty For Non Compliance
- 10% penalty if payer fails to pay the deduction to DGIR
- Consequential amendment -S39(1 )(s ): Non allowable expenses if the commission under S107D is not deducted and paid to DGIR (WEF: A 2022)
3. Payer
- Company (excl LLP)
- Liable to make payment (monetary commission ) to agent, dealer or distributor (ADD)- not employee of the company
- Commission arising from sales, transaction or schemes carried out by age, dealer or distributor
4. Payee (Recipient)
- Resident Individual (including sole prop & partner in a partnership)
- Received more than RM100K of commission whther in monetary or otherwise from the same company in the immediately preceding calendar year.
Want to know more? Click here
