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LHDN has discontinued the acceptance of cheques and money orders for tax payments

Changes in Direct Tax Payment Methods by LHDN

Starting June 1, LHDN (Inland Revenue Board) has announced that it will no longer accept cheques and money orders/postal orders (MOPO) for direct tax payments at their centers, banks, and post offices.

Exemptions for Advance Payments and Installments

However, exemptions apply for advance payments and installments made with cheques before August 1, 2023. The 2% tax deduction on commission payments is also exempted for MOPO.

Affected Payment Channels

Payment channels affected by this change include receipt management centers, payment counters, and cheque deposit machines.

Alternative Payment Methods

After August 1, bank drafts or cash can be used for direct tax payments. Stamp duty payments at satellite offices or state stamp offices will require bank drafts after July 1, 2023.

Online and Bank Payments

Payments with a bill number or Tax Identification Number (TIN) can be made through LHDN’s online portal or via Internet banking at agent banks.

Cash Payments and Electronic Transfers

Cash payments are accepted at post offices and agent banks, with additional options like cash deposit machines and electronic transfers.

Source: TheMalaysianReserve