How to Pay Meta (Facebook Ads) Withholding Tax in Malaysia?

Effective 1 September 2023, IRB encourages submission of withholding tax through e-WHT of MyTax portal. Here's a comprehensive guide on how to pay Meta (Facebook Ads) withholding tax in Malaysia using e-WHT.

A Step-by-Step e-WHT Payment Guide

1. Visit https://mytax.hasil.gov.my and login to your account.

2. From the dropdown menu, select e-WHT.

3. On the left panel, select CP37 and then tick the CP37 checkbox.

how to pay facebook ads withholding tax with e-wht

4. Fill out the "Particulars of Payer" section with your own information.

5. In the "Particulars of Person To Whom Interest / Royalty Had Been Paid / Credited" section, be sure to include the following details if you are paying Meta (formerly known as Facebook).

Meta Income Tax Number: 23548671100

cheapest trademark registration malaysia

After entering the income tax number, the system will automatically display Meta's address. This address should match the one found in the footer of your Meta ads receipts/invoices.

This is the subtotal of Meta ads invoice/receipt.

6. [Particulars Of Deductions] In the "Gross amount" column, enter the combined subtotal amount from all your Meta invoices/receipts. The system will automatically calculate the 8% withholding tax and display it in the "Amount of Deduction" column.

Why Pay 8% Withholding Tax on Meta (Facebook) Ads in Malaysia?

The withholding tax rate for Facebook Ads in Malaysia is 8% because of a Double Taxation Agreement (DTA) between Malaysia and Ireland. A DTA is an agreement between two countries to reduce or eliminate double taxation on income earned by residents of one country in the other country.

facebook meta withholding tax malaysia (https://www.hasil.gov.my/media/3j1dlntb/6-topik-5-cukai-pegangan.pdf)

(https://phl.hasil.gov.my/pdf/pdfam/DTA_WHT_Rates_Feb_2021.pdf)

Royalties are payments made for the use of intangible property, such as copyrights, trademarks, and patents. In the case of Facebook Ads, the Malaysian advertiser is paying Facebook for the use of its advertising platform. This is considered a royalty payment, and therefore the 8% withholding tax rate applies.

If there was no DTA in place, the withholding tax rate would be 10%, which is the default rate for withholding tax on payments made to non-residents.

7. Carefully review all information before submitting the form.

8. Generate bill number (Updates is not allowed after bill number was generated. Please ensure all the information is accurate).

9. Pay online via ByrHASIL option.

10. Maintain accurate records of your payment receipts for tax filing. Remember, withholding tax payments must be made within one month of the date you pay Facebook.

Disclaimer: I'm a certified digital marketer specializing in Google Ads, YouTube Ads, GDN, and Facebook Ads. I'm not an accountant or a tax consultant. This information is intended as a helpful overview based on my personal experience and understanding of e-WHT payments for Meta ads. Tax regulations can be complex and change over time. Always consult the Inland Revenue Board of Malaysia (LHDN) website or a qualified tax professional for the most accurate and up-to-date advice to ensure compliance with your tax obligations.