Withholding Tax Malaysia 2022

Withholding Tax Malaysia 2022
View Full Size

Top 5 Withholding Tax Questions

Introduction - What is Withholding Tax

Withholding tax is an amount withheld by the party making payment (payer) on income earned by a non-resident (payee) and paid to the Inland Revenue Board of Malaysia.

'Payer' refers to an individual/body other than individual carrying on a business in Malaysia. He is required to withhold tax on payments for services rendered/technical advice/rental or other payments made under any agreement for the use of any moveable property and paid to a -resident payee.

'Payee' refers to a non-resident individual/body other than individual in Malaysia who receives the above payments.

Withholding Tax Deduction

The Income Tax Act, 1967 provides that where a person (referred herein as ''payer'') is liable to make payment as listed below (other than income of non-resident public entertainers) to a non-resident person ( NR payee), he shall deduct withholding tax at the prescribed rate from such payment and (whether such tax has been deducted or not) pay that tax to the Director General of Inland Revenue within one month after such payment has been paid or credited to the NR payee.

Top 5 Withholding Tax Questions

1. What is subject to withholding tax?

2. How is tax withholding calculated?

3. Why is withholding tax deducted?

4. When is withholding tax due ?

5. What is the withholding tax rate?

Past blog

Read our past blog on withholding tax in Malaysia
1. 两个重要改变 - 预扣税 (withholding tax) dated 11/11/2021


2. 马来西亚预扣税 (withholding tax) 的规则概述(第3篇) dated 21/09/2020


3. 马来西亚预扣税 (withholding tax) 的规则概述(第2️⃣篇) dated 21/09/2020


4. 马来西亚预扣税 (withholding tax) 的规则概述 (第1️⃣篇) dated 15/09/2020


5. Withholding Tax In Malaysia Part 2 of 2 dated 28/06/2019 (eKTP114) https://bit.ly/3AyvKmE

6. Withholding Tax In Malaysia Part 1 of 2 dated 28/06/2019 (eKTP113) https://bit.ly/32FzgiQ

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks




THK Management Advisory Sdn Bhd

Wisma THK, No. 41, 41-01, 41-02, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru, Johor, Malaysia.
+6012-771 7903
+607-361 3443
Switch to Mobile Version
Subscribe Newsletter