Demystifying Malaysian Withholding Tax
Withholding tax is a key feature in the Malaysian tax legislation, being an income tax collection mechanism for income derived by non-residents. Businesses have grown in current times of globalisation and are driven to explore global markets for growth opportunities. With increased cross-border business transactions coupled with the rapidly changing tax environment, Malaysian corporations should be aware of the tax implications affecting them in their cross border dealings and sound withholding tax knowledge is a necessity in this day and age.
Dealing with complex transactions and international investments, the obligation to withhold tax at source on certain payments to non-residents could catch out unwary corporations, giving rise to non-compliance penalties, especially in light of recent changes to the withholding tax legislation.
An amendment was made in the Finance Act 2018 to remove the word ‘technical’ under the scope of chargeability for special classes of income under Section 4A(ii) of the Income Tax Act, 1967 (“the Act”).
With the removal of the word ‘technical’, it will be difficult for businesses to argue that only payment for technical services is subject to withholding tax. The new provision under Section 4A(ii) may provide a ‘catch-all’ provision for the Malaysian Inland Revenue Board (“MIRB”) to subject more payments for the provision of services rendered by non-residents which do not fall within the scope of other provisions in the Act, to withholding tax unless the services are rendered and performed outside Malaysia as provided under the Income Tax (Exemption) (No.9) Order 2017.
The withholding tax provisions under the Act place tremendous demand on payers and hence, a good understanding of the Malaysian withholding tax regime is critical to avoid any potential on non-compliance penalties.
Let us assist you to demystify the changes made to the withholding tax provisions and support you in complying with your withholding tax obligations particularly, by taking you through the notable changes made to the tax law with the issuance of Public Ruling (“PR”) No. 10/2019 that replaces PR No. 11/2018 including an update of latest tax cases on withholding taxes, together with the revised Guidelines on Taxation of Electronic Commerce Transactions issued by the MIRB on 13 May 2019.
- Overview of withholding tax regime
- Various types of withholding tax
- Consequences of non-compliance
- Double taxation agreements and OECD
- Impact of Finance Act 2018 and PR No. 10/2019
- Latest tax cases on withholding tax
- Revised Guidelines on Taxation of Electronic Commerce Transactions
- Practical issues and case studies
- A digital certificate of attendance will be issued for 7 CPE hours.
- RM350 per participant (inclusive of service tax and downloadable course materials)
Who Should Attend?
- Finance managers
- Tax managers & executives
- A substitute delegate is welcome at no extra charge if you are unable to attend. Please inform us 2 working days before the event in order for us to update our records.
- No refund will be given for cancellations received less than 7 working days before the event date.
Download brochure here.
|Demystifying Malaysian Withholding Tax
KPMG Tax | Remote Online Learning Series
|Day 1||Day 2|
|Date: 7 September 2020||Date: 8 September 2020|
|Time: 9.00a.m. - 1.00p.m.||Time: 9.00a.m. - 12.00p.m.|
|Click here to register|
- Register by 2 September 2020 (Wednesday) as space is limited. Registration is on a first come, first served basis.
- Course material and access to the webinar will only be provided to the registered fully paid participant only. The course material and access link should not be provided to and be used by a third party.
- KPMG’s webinar series are conducted online; hence, you will need to have stable internet access in order to participate. While you may view the webinar using a mobile device, it is recommended to participate using PC-based Google Chrome or Microsoft Edge browser for optimal experience.
- Participants are required to prepare their own computer with audio capabilities (speaker and microphone), sketch papers, calculator and stationeries for the purpose of this training.