The Inland Revenue Board (LHDN) has announced that the tax man will no longer accept cheques and money orders/postal orders as payment methods for direct tax payments.

This policy change applies to all LHDN receipt management centers, stamp duty payment counters, banks, and post offices designated as collection agents.

Exemption

However, an exemption has been granted for advance payments and instalments related to audit, investigation, and civil law cases, provided that the cheques/post-dated cheques were submitted to LHDN before August 1, 2023.

Additionally, the payment of a 2% tax deduction against commission payments under Section 107D of the Income Tax Act 1967 is also exempt from this rule.

TAX MAN AND THE TIN

Effective from August 1, direct tax payments can be made via bank draft or cash using the bill number or Tax Identification Number (TIN) at LHDN centers and collection agents.

Stamp duty payments after July 1, 2023, can only be made with bank drafts, while other payment options include cash at post offices and agent banks, cash deposit machines, selected automated teller machines etc.

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