LHDN Dividend Withholding Tax Form for Foreign Shareholders

Simplify Malaysian Dividend Withholding Tax Compliance with Paperform

If your company distributes dividends to foreign shareholders, navigating Malaysia's withholding tax requirements under the Inland Revenue Board (LHDN) can be complex—especially when double taxation agreements (DTAs) come into play. This LHDN Dividend Withholding Tax Form for Foreign Shareholders template streamlines the entire process, helping finance teams, tax advisors, company secretaries and corporate service providers collect accurate shareholder information, calculate withholding obligations and claim treaty relief in one professional, compliant workflow.

Why Malaysian companies need a structured dividend withholding tax form

Under Malaysian tax law, dividends paid to non-resident shareholders are subject to withholding tax at rates that vary depending on the shareholder's country of residence and applicable double taxation agreements. Getting the documentation right is critical—incorrect filings can lead to over-withholding (harming shareholder relations), under-withholding (exposing your company to penalties) or delayed treaty relief claims.

A digital form template solves these challenges by:

• Capturing complete shareholder details including tax residency, identification numbers and beneficial ownership status
• Automating treaty relief eligibility checks with conditional logic that adapts questions based on the shareholder's country
• Ensuring LHDN compliance by collecting all required certifications, tax residency certificates (TRC) and supporting documents
• Creating audit-ready records with timestamps, eSignatures and secure file uploads for every declaration
• Saving finance teams hours by replacing manual PDF forms and email back-and-forth with a single, trackable submission

Who this template is built for

This form is designed specifically for:

• Company secretaries and finance directors managing dividend distributions for Malaysian private limited or public companies registered with SSM (Suruhanjaya Syarikat Malaysia)
• Tax consultants and accounting firms preparing withholding tax filings on behalf of corporate clients
• Corporate service providers handling compliance for foreign-owned Malaysian subsidiaries
• Fund administrators and investment firms processing dividend payments to international investors

Whether you're preparing quarterly dividends or a one-time distribution, this template ensures you collect everything LHDN requires in a format that's simple for foreign shareholders to complete, even across time zones and languages.

Key features of this template

Smart conditional logic for treaty countries
The form adapts based on the shareholder's country of residence. If they're in a DTA country, the form automatically requests treaty-specific information (residency certificates, treaty article references and beneficial ownership declarations). If no treaty applies, it captures the standard withholding rate and justification.

Comprehensive shareholder identification
Collect passport details, MyKad/NRIC for Malaysian PRs, foreign tax ID numbers, company registration numbers for corporate shareholders and full correspondence addresses. This ensures LHDN filings include all required identification fields and reduces back-and-forth requests for missing data.

Upload fields for supporting documents
Shareholders can upload their Tax Residency Certificate (TRC), certificate of incorporation, beneficial ownership declarations and any other supporting documents directly into the form. Files are securely stored and linked to the submission, creating a single compliance package for each shareholder.

Built-in calculations for withholding amounts
Use Paperform's calculation fields to compute withholding tax amounts based on dividend value, applicable treaty rate or statutory rate and display the net amount payable to the shareholder. This transparency builds trust and reduces disputes over final payment amounts.

eSignature integration with Papersign
For declarations that require formal attestation, connect this form to Papersign (papersign.com) to send the completed submission for secure eSignature. This creates a legally binding record of the shareholder's declarations and treaty claims, strengthening your audit trail and simplifying LHDN submissions.

Automated workflows with Stepper
Once a shareholder submits the form, use Stepper (stepper.io) to automate what happens next:

• Route submissions to your tax team or external advisor for review
• Trigger approval workflows for treaty relief claims above certain thresholds
• Update your accounting system or shareholder register with new residency data
• Send confirmation emails with calculated withholding amounts and payment timelines
• Create tasks in your project management tool for TRC verification or follow-up document requests

This automation ensures nothing falls through the cracks during peak dividend season, when you might be processing dozens of shareholder declarations simultaneously.

How finance teams and advisors use this form

Scenario: Quarterly dividend distribution to 30 foreign shareholders
Your Malaysian Sdn Bhd has shareholders in Singapore, the UK, Hong Kong and Australia. Instead of emailing Word documents or PDFs and chasing missing signatures, you send a single branded Paperform link. Each shareholder completes their declaration online, uploads their TRC and reviews the calculated withholding amount. Submissions flow into Google Sheets for reconciliation, high-value treaty claims are routed for partner review via Stepper and once approved, Papersign sends the final declaration for eSignature. Your finance team gets a complete, audit-ready package for LHDN filing—without the manual data entry.

Scenario: First-time foreign investor claiming treaty relief
A new institutional investor from the Netherlands is joining your cap table. They're entitled to reduced withholding under the Malaysia-Netherlands DTA but need to provide extensive documentation. Your form's conditional logic prompts them for the correct treaty article, beneficial owner status and TRC upload, with helper text explaining each requirement. The submission is flagged for review, your tax advisor confirms eligibility and the investor receives a branded confirmation email with next steps. What used to take two weeks of email ping-pong now completes in 48 hours.

Compliance, security and Malaysian regulatory standards

Paperform is SOC 2 Type II compliant and GDPR-ready, with data residency controls that let you store sensitive shareholder data in accordance with Malaysian privacy standards and international best practices. Role-based permissions ensure only authorised finance or tax team members can access submitted forms, and every submission is timestamped and logged for audit purposes.

While Paperform is not HIPAA compliant, it meets the rigorous security and compliance standards expected by Malaysian companies, SSM-registered entities, listed firms and their advisors.

Customisation and branding for professional service providers

If you're a tax consultancy or corporate services firm serving multiple Malaysian clients, Paperform's Agency+ plan lets you create white-label versions of this template for each client, manage permissions across client accounts and track submissions via a unified dashboard. You can also add your firm's branding, custom success messages and automated reporting so clients see a seamless, professional experience from form to final LHDN filing.

Get started in minutes

This template includes all the fields, logic and calculations you need to collect LHDN-compliant dividend withholding tax declarations from foreign shareholders. Simply customise the shareholder country list, add your company's SSM details, connect your preferred integrations (Google Sheets, email, CRM or Stepper workflows) and share the form link with your shareholders.

For companies and advisors who need to balance regulatory compliance with shareholder experience, this Paperform template is the fastest, most reliable way to digitise dividend withholding tax declarations and claim double taxation relief without the spreadsheet chaos.

Trusted by finance teams, tax advisors and corporate service providers across Malaysia and beyond, Paperform delivers professional forms and automations without coding—backed by SOC 2 Type II compliance, 30,000+ templates and seamless integrations with the tools you already use.