Mandatory e-107D Submission for Tax Reporting
The Inland Revenue Board (IRB) has made the submission of the Section 107D Payment Form (e-107D) mandatory starting 1 January 2025. This move signifies a shift towards a more digitalized tax administration system in Malaysia. Previously, taxpayers manually submitted payment information to agents, dealers, or distributors (resident individuals) under Section 107D of the Income Tax Act 1967. With the new e-107D system, all submissions will be conducted electronically using Form CP 107D.
What Are the Benefits of Using e-107D?
By making e-107D compulsory, taxpayers and the IRB gain several advantages. Here’s a breakdown of the potential benefits:
- The filing process becomes more convenient and efficient: Taxpayers can submit their forms electronically, eliminating the need for manual processes and paperwork. This can save time and effort, streamlining tax filing procedures.
- More accurate tax information collection: Electronic submissions are less prone to errors compared to manual filing. This can minimize the risk of mistakes and ensure the accuracy of tax information.
- Tax assessments and refunds are processed faster: The IRB can process e-107D submissions more efficiently, potentially leading to faster turnaround times for tax assessments and refunds.
- More accountable documentation: Electronic records are easier to maintain and access compared to paper-based filing. This can simplify record-keeping for both taxpayers and the IRB.
What Are My Tax Payment Options Under e-107D?
In addition to submitting Form CP 107D electronically, taxpayers must make tax deduction payments under Section 107D electronically using a designated bill number. The IRB provides two online platforms for processing these payments:
- ByrHASiL Portal: This is the official portal of the IRB for online tax services. Taxpayers can access the portal at https://byrhasil.hasil.gov.my/HITS_EP/ to make e-107D payments.
- Financial Process Exchange (FPX): This online interbank funds transfer system allows for instant payments directly from a taxpayer’s bank account. Taxpayers can access FPX through the ByrHASiL link for seamless e-107D payment processing.
Kuala Lumpur Revenue Management Centre (PPTHKL) Ends Manual Payment Services
The IRB has discontinued manual payments for specific tax categories at the Kuala Lumpur Revenue Management Centre (PPTHKL) as part of its service enhancements and the push towards digitalization. These categories include:
| Tax Category | Description |
| Real Property Gains Tax (CKHT) | 3% retention sum paid by real estate acquirers under Section 21B of the Real Property Gains Tax Act 1976 (Form CKHT502 |
| Withholding Tax | Tax deducted at source from certain payments, such as interest, royalties, and rent |
| Tax on Entertainers’ Income | Income tax levied on income earned by entertainers |
| 2% Tax Deduction on Commissions Paid to Agents, Dealers, or Distributors | Commissions paid by companies to agents, dealers, or distributors under Section 107D of the Income Tax Act 1967 |
How Else Can I Pay for Discontinued Tax Categories?
Taxpayers can utilize various alternative payment methods for the tax categories that are no longer accepted manually at PPTHKL. These methods include:
- Online Payments: Taxpayers can make payments via the official HASiL Portal (ByrHASiL).
- Internet Banking: Online banking portals of IRB agent banks can be used for tax payments.
- Cash Payments: Cash payments are still accepted at Pos Malaysia counters, cash deposit machines, ATMs, and certain IRB agent banks.
- Telegraphic Transfers, Electronic Fund Transfers (EFT), and Interbank Giro (IBG): These methods can be used for both domestic and international tax payments through the eTT system, provided taxpayers have bank accounts in Malaysia or abroad.
Debit and Credit Card Payments Are Still Accepted Selectively
While the IRB is transitioning towards a more digitalized tax system, it will continue to accept compound and income tax payments made via debit and credit cards issued in Malaysia. This provides taxpayers with some flexibility in their payment options.
e-107D: A Move Towards Full Digitisation
The IRB’s implementation of mandatory e-107D submission and discontinuation of manual payments for certain tax categories signifies a meaningful step toward full digitization of the tax administration system in Malaysia. The Board as well as the taxpayers it serves can count enhanced efficiency, convenience and accuracy in tax processes among the improvements expected from this initiative. It also reinforces the country’s commitment to modernizing its tax system and aligning with global trends in digital tax administration.
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