Payment to Overseas/ Foreigner is also required to pay tax??!! 😰
By Foo Say Piau Businesses/ companies in Malaysia with purchased transaction(s) / acquisition from “Non-resident Company / individual” are required to pay tax (WHT) * due to :- Finance Act 2017 gazetted recently to expand the withholding tax (WHT) particularly on the services and royalties. No. Payment Type subject to WHT (non-exhaustive list) Withholding Tax Rate Income Tax Act 1967 (ITA) i Royalty 10% Section 109 ii Special classes of income : Technical fees, payment for services, rent/payment for use of moveable property (1) Services rendered by Non-resident in overseas are subject to WHT due to the removal of proviso for deemed derivation rules which were amended under Finance Act 2017 (2) Subsequently, Income Tax (Exemption) (No. 9) Order 2017 (P.U.(A) 323/2017) provides that services falls under Section 4A(i) and 4A(ii) of the Income Tax Act 1967 (with effect from 6 Sept 2017) are no