Effective from 1 January 2022, payments made by companies in monetary form to their authorised ADDs arising from sales, transactions or schemes carried out by them, are subjected to 2% WHT. The WHT is only applicable where the ADDs are resident individuals who have received payments of more than RM100,000 whether in monetary form or otherwise, from the same company in the preceding basis year for a year of assessment. The WHT shall be remitted to the Director General of the Inland Revenue Board within 30 days after paying or crediting the ADDs.
The Inland Revenue Board (“IRB”) has, on 12 January 2022, issued a media release to announce that the implementation of the remittance of the above WHT will be deferred until 31 March 2022. In this regard, companies are allowed to remit the WHT, where applicable, on payments made to ADDs from January 2022 to March 2022, starting from 1 April 2022. No further clarifications have been announced and the IRB will issue Frequently Asked Questions on this matter.
The IRB’s media release, which is only available in the Malay Language, can be accessed via the above link.
Should you have any questions or require further clarification, please do not hesitate to email or contact any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organization.
