Citibank Launches E-filing Service In Malaysia

by Mary Swire, Tax-News.com, Hong Kong

03 June 2009

Citibank Berhad and Lembaga Hasil Dalam Negeri Malaysia (LHDNM) has become the first foreign bank to provide an online tax payment solution to Malaysian corporations with the launch of its CitiConnectSM e-Tax - an online payment solution that enables companies to settle their tax payments to LHDNM.

LHDMN is the sole tax authority in Malaysia charged with the collection of income taxes for the government.

Following an agreement signed at the launch on June 1, companies can now have access to a 24/7 convenient and secure online channel to initiate tax payments to LHDNM.

Through CitiConnect, corporate users can initiate tax payments to LHDNM via an online form. This form is built-in to CitiConnect to facilitate simplicity and convenience when making tax payments. CitiConnect is a web-enabled financial services portal that facilitates e-commerce transactions from a single delivery channel.

Speaking at the ceremony, YBbhg Dato’ Hasmah binti Abdullah, Chief Executive Officer of LHDNM said:

“It is indeed heart–warming that this smart partnership between LHDNM and Citibank is made possible which will entail great significance as it marks another level of success in the ever-continuing synergy between the public and private sector.”

Sanjeev Nanavati, Chief Executive Officer of Citibank Berhad added:

"Our partnership with LHDNM allows us to provide a platform for our customers to make over 19 different tax payments via CitiConnect. This is an easier avenue to make tax payments."

In addition to allowing corporations to make tax payments for business related income online, CitiConnect also supports employee PCB tax payments. Using the CitiConnect platform, corporations/employers can upload their PCB submission and initiate payments online via a simple user interface.

For Citi, this new service complements its existing EPF e-Contribution alliance, which is currently available in Malaysia.

Mr Nanavati further added said that in addition to being time and cost efficient, the e-tax payment services provided by both Citibank and LHDNM was in line with Bank Negara Malaysia's strategy to promote greater adoption of and migration to more competent electronic payment modes.

Citi was the first foreign bank in Malaysia to launch Internet delivery channels for the corporate markets in 2001.

Since then, over 1,000 large corporations, both Malaysian corporate and multinational companies, actively utilize its Internet banking services for payments and cash management. More than 80% of all corporate payments made by Citibank clients are initiated via Internet channels.

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