withholding tax

WITHHOLDING TAX (PAYMENT TO INDIVIDUALS AND ENTERPRISE BUSINESSES)

1. Any payment for services made to an individual or sole-proprietor in the current year, where payments in the preceding year to that individual or sole-proprietor had exceeded RM100,000 are subject to withholding tax.
2. It is the duty of the payer to withhold 10% and remit to LHDN in the appropriate forms.
3. Non-compliance will result in penalties and LHDN may also disallow the expense resulting in a higher tax liability.