High withholding tax on transfer of car ownership

Question

My filer status was inactive because i have not filed income tax returns for FY 23 & 24. It changed into active tax payer after I filed income tax return for FY 2025 and filed late income tax returns for FY 2023 & 2024 as well. but once i try to transfer the ownership of car that i purchased, epay still charge me withholding tax equivalent to a non-filer. Kindly if anyone knows how can i avoid this high rate of withholding tax before march 2026?.

Answer 1

Since your filer status has been activated, the e-pay system should be applying the lower filer rates. The fact that it is still charging you non-filer rates suggests a delay in system synchronization or an issue with how your updated status is being recognized by the specific e-pay platform used for vehicle transfers. Your active taxpayer status should already entitle you to the lower withholding tax rates for car transfers. The issue you're facing appears to be an administrative recognition problem. You should consider waiting for the (Monday/Tuesday) to see if the e-pay system synchronizes.