Malaysia Tax Agency Announces Tax on Cash Payments to Agent, Distributor Under 2022 Budget

The Malaysian Inland Revenue Board Jan. 12 announced the tax on cash payments made to agents or distributors under the 2022 Budget. The announcement includes: 1) the 2 percent withholding rate for payments by companies to agents or distributors that are resident individuals; 2) deduction eligibility criteria for the agent or distributor based on a 100,000-Malaysian ringgit (US$23,943) threshold for receipts in the previous year, including cash and non-cash receipts; 3) the deadline to remit the tax withheld within 30 days of the payment; 4) the 10 percent interest for failure to timely remit taxes; 5) the disallowance of expense ...