LHDN to Discontinue 2% Tax Deduction on Payments to Deceased Agents and Distributors Effective August 1
7/1/20251 min read
Starting August 1, the Inland Revenue Board (LHDN) will no longer permit the two percent tax deduction on payments made to deceased agents, dealers, or distributors (Resident Individuals - EPP). LHDN clarified this decision is based on the Income Tax Act 1967, where a deceased person is not classified as an 'individual'. Any income received after an EPP's death must now be managed by their executor or administrator through a Deceased Person's Estate (TP) tax file, which must be registered with LHDN to ensure compliance.
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