What is withholding tax and when do I pay it on foreign vendors?
Certain payments to non-residents require withholding tax, depending on their nature, source and any treaty or exemption. The general remittance deadline is one month after payment or crediting, with specific exceptions. Failure can trigger increased tax and deduction restrictions; later settlement may restore a deduction under the applicable rules.
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Ask your tax agent to classify overseas software, consultancy and contractor payments before payment or crediting. Not every foreign invoice has the same treatment. HASiL also provides a conditional deferment for certain small-value withholding payments.
Key facts
- Classify the payment and check treaty/exemption eligibility
- General deadline: one month after payment or crediting
- Late payment can affect deductions; check the remedy
Call +60 10-383 5988 (a licensed secretary replies within one working hour (Mon–Fri 8:30am–5:30pm MYT; outside hours, first thing next working day)) or walk in at J-3A-15, Solaris Mont Kiara.