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 Google Ads withholding tax in Malaysia using e-WHT.

How to Pay Withholding Tax Online?

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

2. Select "e-WHT" from the dropdown menu.

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

4. In the "Particulars of Payer" section, enter your 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 for Google Ads.

Google Income Tax Number: 24921924070 

Address:

Google Asia Pacific Pte. Ltd.
Mapletree Business City II
70 Pasir Panjang Road, #03-71
Singapore 117371

This is the subtotal of Google Ads invoice.

6. [Particulars Of Deductions] In the "Gross Amount" column, enter the "Subtotal in MYR" from your Google Ads invoice. The system will automatically calculate the 8% withholding tax and display it in the "Amount of Deduction" column, which should match the 8% service tax charged in your Google tax invoice.

Why Pay 8% Withholding Tax on Google Ads in Malaysia?

The withholding tax rate for Google Ads in Malaysia is 8% because of a Double Taxation Agreement (DTA) between Malaysia and Singapore. 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.

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Royalties are payments made for the use of intangible property, such as copyrights, trademarks, and patents. In the case of Google Ads, the Malaysian advertiser is paying Google 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 Google Ads.

Disclaimer: I'm a certified digital marketer but 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 Google 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.