Penalty for Late Remittance of MTD

Any employer who fails to remit MTD payment on or before the 15th day of the following month has made an offence that subject to fine imposition. The fine imposed will be a minimum of RM200 but not more than RM20,000 or 6 months imprisonment or both.

An employer who fail to deduct MTD from employee salary or deducts but fails to remit the MTD to IRBM can be prosecuted in a civil court. The MTD amount not deducted will become a debt to the Government.

MTD Payment for Non Resident Employee

MTD of an employee who is not resident or not known to be resident in Malaysia shall be calculated at the rate of 28% of his remuneration for the year 2016 onwards.

Example :

Employee is not resident in calendar year 2016.
Total monthly remuneration : RM3,000.00

MTD calculation : RM3,000.00 x 28%

Total MTD : RM840.00