We now know that we need to withhold the withholding tax (WHT) to be paid to the Malaysian Inland Revenue Board (HASiL) when we make payments to a non-resident payee. Today, we will take a more detailed look into the technical aspect of this remittance.

Listed here are the corresponding payment forms for the payments that are subject to WHT pursuant to the Income Tax Act (ITA) 1967:  

1. Contract payment (s.107A ITA 1967) – Form CP 37A  
2. Interest (s.109 ITA 1967) – Form CP 37 
3. Royalty (s.109 ITA 1967) – Form CP 37  
4. Public entertainer (s.109A ITA 1967) – payment memo by assessment branch
5. Special classes of income (s.109B ITA 1967) – Form CP 37D
6. Income under s.4(f) ITA 1967 (s.109F ITA 1967) – Form CP 37F  

How Should the Remittance Form Be Filled Out

Express Sdn. Bhd. (payer) engaged Lee Inc. (payee) from the United States of America for advertising services amounting to RM4,000 in 2021. According to WHT legislation, the payer is required to withhold RM 400 as WHT and remit such tax to the HASiL within one month from the date of payment to payee.

Sample of how the Form CP37D should be filled out by payer: 

What if Express Sdn. Bhd. does not have the income tax reference number of Lee Inc.? In that case, Express Sdn. Bhd. can request it by writing an application letter together with full details of the payee to: