(Tax Update) Form E-107D : 2% Tax Deduction For Commission to Agents, Dealers or Distributors

(Tax Update) Form E-107D : 2% Tax Deduction For Commission to Agents, Dealers or Distributors

Tax Latest Development

The Inland Revenue Board of Malaysia (HASiL) recently made an announcement on their website, dated 27th June 2023, to inform the public about a new development.

IRB has introduced a new form, called Form e-107D, which is now available for online submission. This form is specifically designed for companies to declare and claim a 2% tax deduction on commission payments made to agents, distributors, or dealers, as outlined in Section 107D of the Income Tax Act 1967.

Key Salient Points

According to HASiL Media Release, the Form e-107D includes functions such as:

a. Online filling in the information of the payer and payee of the commission payments for the

purpose of S.107D;

b. Downloading the CP107D Appendix;

c. Uploading the CP107D Appendix; and

d. Bill Number generation for the purpose of S.107D tax payment via ByrHASiL after the Form CP107D has been submitted.

How to Form E-107D

The Form e-107D can be accessed through the MyTax application at https://mytax.hasil.gov.my/. The MyTax user needs to log in and select the role of Director or Director’s representative to use the Form e-107D.

Taxpayers can also refer to the User Manual of the Form e-107D on HASiL’s website as follows:

HASiL website > MyTax > User Manual > User Manual CP107D

Penalty

• 10% penalty if the payer fails to remit 2% to IRB within 30 days

• Commission is not allowed for tax deduction

Further Reference From on 2% Tax Deduction For Commission

Read our past post on withholding tax on commission to agents :

1. (Latest update) Withholding Tax on Payments to Agents dated on 21.04.2022

https://bit.ly/3uFIQNj

2. Withholding Tax on Payments to Agents dated on 17.03.2022

https://bit.ly/3L3JzOB

3. 2% withholding tax on commission dated on 30.12.2021

https://bit.ly/3hRrk20

4. 预算案 2022 dated 19.11.2021

https://bit.ly/3tKU7dM

5. Budget 2022 - SME edition dated on 18.11.2021

https://bit.ly/3IWhAiR

Source :

HASiL Media Release - E-107D https://bit.ly/3PBZrNs

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