Starting from 1 January 2023, the Inland Revenue Board of Malaysia (IRBM / HASiL) officially introduced the electronic Withholding Tax (e-WHT) system. This initiative allows taxpayers to conveniently submit and pay withholding tax online. From 1 September 2023 onwards, the use of e-WHT has been gradually enforced in stages.

1. Background and Implementation

  • IRBM announced through a media release on 30 August 2023 that the e-WHT system had been launched on 1 January 2023 and would be made mandatory in phases starting 1 September 2023.
  • The system initially covered common types of withholding tax filings, such as:

    ▪ Form CP37: For interest and royalty payments.
    ▪ Form CP37A: For “special class of income”, including contract payments.

2. How to Use e-WHT

  1. Log in to the MyTax portal and access ezHasil services > e-WHT.
  2. Complete the relevant form online (e.g., CP37 or CP37A). After submission, the system will automatically generate a Bill Number, which serves as the payment reference.
  3. Using this Bill Number, taxpayers can make payments through FPX on the ByrHASiL payment portal or directly via the MyTax portal.
  4. Once payment is successful, the system will issue a receipt and acknowledgement of data submission immediately, ensuring that all records are securely stored.

3. Advantages Compared to Traditional Methods

  • Greater Efficiency: No need to physically visit HASiL service counters in Kuala Lumpur, Kuching, or Kota Kinabalu. Taxpayers can submit and pay everything online.
  • Simplified Process: Under the previous e-TT system, taxpayers were required to send additional documents (via email or hard copy). With e-WHT, this requirement is eliminated.
  • Transparent Compliance: The issuance of electronic receipts and submission acknowledgements provides clear records for audits and future tax checks.

4. Key Notes and Additional Information

  • Phased Coverage: Some withholding tax types are not yet supported under e-WHT, such as:

    ▪ CP37S: For small-value interest and royalties.
    ▪ CP37DS: For small-value special class of income.
    These forms are expected to be included in future updates.
  • Record Keeping: Although submission is simplified, taxpayers are still required to retain all supporting documents for compliance purposes.
  • Relation to e-TT: The e-WHT system is intended to replace the older e-TT (electronic telegraphic transfer) method. Taxpayers with local bank accounts are strongly encouraged to use e-WHT for its simplicity.

5. Conclusion and Outlook

The launch of Malaysia’s e-WHT system marks an important step in the country’s tax digitalisation journey. By automating Bill Number generation, streamlining online submission, and enabling fast payments, the system significantly improves efficiency and transparency. As more form types are progressively added, taxpayers can expect an even more complete and seamless digital tax experience in the near future.

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