Posts

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