Penalty for Late Remittance of MTD

An employer who fails to remit payment on or before the 15th of the following month can be fined. The minimum fine is RM200 and not more than RM20,000 or 6 months imprisonment or both.

An employer who does not deduct MTD or deducts but fails to remit the MTD to IRBM can be prosecuted in a civil court. With this, the MTD not deducted becomes 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 26% of his remuneration for year 2010.

Example :

Employee is not resident in calendar year 2010.

Total monthly remuneration : RM3,000.00

MTD calculation : RM3,000.00 x 26%

Total MTD : RM780.00