Withholding tax

This page is for finance staff your administrator has given access to withholding tax in Payables. Approving a remittance needs a second person, as for supplier payments.

When you pay certain non-resident suppliers, part of the payment is withheld and owed to LHDN instead (see Supplier payments). A remittance records paying that withheld tax to LHDN, one section at a time. Open Payables → Withholding tax.

Note

mcomtask records what you enter and works out the amounts from your withholding codes. Whether tax must be withheld, the rates, the sections and the due dates are tax questions: your adviser must confirm them.

Where withheld tax comes from

Each payment with Tax withheld creates a deduction. Its status moves on as it is paid:

Status	What it means
Not yet paid	The supplier payment is not approved yet
To remit	The payment is paid; the tax is waiting to be paid to LHDN
In a remittance	It is on a remittance that is not paid yet
Remitted	The remittance is paid
Exempt (treaty)	Nothing is due

You see these on the payment, beside each deduction, with the date it is Due to LHDN.

The remittances list

Each row shows the Reference (WR-…), the Section, the Date, the Amount (in ringgit) and the Status. Sort and filter from the column headings.

Record a remittance

1. Select New remittance.

2. Fill in:

   Field	What to enter
   Section	The section the tax falls under, e.g. Section 109B — services and technical fees (CP37D). One remittance covers one section.
   Pay from	The bank account the payment to LHDN leaves
   Payment date	The date you pay LHDN
   Bank reference	The bank’s reference, if you have it

3. Under Deductions, tick each deduction to pay. Only deductions that are To remit in that section are listed, with the supplier and payment. Total to pay adds them up.

4. Select Submit, or Save draft to finish later.

If you see “Nothing to remit in this section”, no paid deduction in that section is waiting.

Remittance statuses

Status	What it means	What happens next
Draft	Saved, not sent	Submit it, or Withdraw it
Pending approval	Waiting for a second person	They select Approve and pay, or Reject
Paid	Approved and posted to the ledger	Record the LHDN receipt number
Rejected	Sent back with a reason	The preparer selects Revise
Withdrawn	Dropped before it was submitted	Final
Voided	Reversed	Final

You cannot approve a remittance you prepared, except as an organization’s only member, with a reason recorded as a sole-owner exception.

Record the LHDN receipt

After paying, LHDN issues a receipt.

1. Open the paid remittance.
2. Type the LHDN receipt number and select Record LHDN receipt.

The panel then shows “LHDN receipt number: …”.

Caution

Once the receipt number is recorded, the remittance can no longer be voided. Check it before you save it.

The withholding register

Reports → Withholding register lists every deduction whose payment falls in a date range, by section: Supplier, Payment, Paid on, Taxable, Withheld, Status and the LHDN Receipt, with totals per section. Export downloads it.

Two flags may appear:

• Late (increase may apply): paid to LHDN after its due date, or still unpaid past it
• Invoice posted over a month before payment: the invoice was posted long before it was paid; ask your adviser whether that affects the due date

Problems

Message	What to do
“Every deduction on a remittance must be of the remittance’s section.”	Pick deductions of one section only.
“This withholding tax has already been remitted.”	Reload; another remittance already paid it.
“Record the receipt number once the remittance is paid.”	Approve the remittance first.
“Withholding tax is filed in ringgit, so it needs the organization’s base currency to be MYR.”	Speak to your administrator.