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.