March 2022

FAQ in Relation to the Deduction of Tax at 2% on Payments Made by a Company to an Agent, Dealer or Distributor

Effective 1st January 2022, a company is required to withhold 2% tax on payments made in monetary form to an agent, dealer or distributor who is a resident individual arising from sales, transactions or schemes pursuant to the new Section 107D of the Income Tax Act 1967 ["ITA 1967"].