Withholding Tax Filing (PND 1,3,53 and PND 54)

Withholding Tax Filing (PND 1,3,53 and PND 54)

Withholding tax is a tax applied to either domestic or foreign service payments. It is the tax withheld from the payments made to service providers, for hire of work/services and the compensation payments to the employees of the company. This is also the tax applied to expense payments like interest, capital gains, rents, royalties and service fees. In general, the withholding tax rate ranges from 1% to 5%, and 15%. The rate of withholding tax is based on the kind of service to be paid and the residency status of the recipient of the income. Remittance of the withholding tax is made within 7 days of the following month. Failure to do so will incur penalties and summons from the relevant government authorities.