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Demystifying Malaysian Withholding Tax

tax

On 21 May 2020, the Inland Revenue Board of Malaysia (“IRBM”) has issued guidelines to provide clarification in determining a place of business (“PoB”) of a non-resident person in Malaysia. These guidelines have adopted features from the Multilateral Instrument (“MLI”) to implement treaty-related measures under the OECD’s BEPS initiative. Malaysian payers who make payments to foreign businesses may now need to reassess their withholding tax obligations in view of the extensive “PoB” definition.

Additionally, the removal of the word ‘technical’ under the scope of chargeability for special classes of income effective 28 December 2018 may provide a ‘catch-all’ provision for the IRBM to subject more payments to withholding tax.

Also, addressing the tax challenges on the Digital Economy arising from the OECD’s BEPS initiative, Malaysia has implemented the digital tax on digital services provided by a foreign registered person to any consumer in Malaysia effective 1 January 2020.

Malaysian payers would need to consider the withholding tax and digital service tax impact on payments made to foreign service providers.

Since the Malaysian withholding tax provisions under the Act places significant demands and responsibilities on payers, a good understanding of the Malaysian withholding tax regime is critical to avoid any 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.  We will take you through the notable changes made to the above tax law including the issuance of Public Ruling (“PR”) No. 10/2019 and an update of the latest tax cases on withholding taxes.  We will also look at the Guidelines in determining whether a “PoB’ exists in Malaysia as well as the Guide on Digital Services by Foreign Service Provider published by the Royal Malaysian Customs Department.

Who Should Attend?

This webinar is aimed at personnel whose responsibilities cover the settlement of invoices, making payments to vendors and suppliers, negotiating contracts, involved in tax planning, and those who wish to have a more complete knowledge of withholding tax.

It is also useful for personnel who oversee companies’ tax issues and have oversight over tax matters.

Fee

  • RM350 per person, inclusive of 6% SST and participant materials. 
  • Payment must be made in full by 23 March 2021, with payment receipt submitted to KPMG. Only registrations paid in full will receive access to the webinar.
  • No cancellation and/or refund will be entertained but a replacement delegate is welcomed at no additional charge if registered delegate is unable to attend. Advance notice of 48 hours before the event is required.
  • Course material and access to the webinar will 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.

Demystifying Malaysian Withholding Tax

Date and time:

30 March 2021 (Tuesday) [09:00am – 01:00pm]
31 March 2021 (Wednesday) [09:00am – 12:00pm]

Course Highlights

In this webinar, we will explore: -

  • Overview of the withholding tax regime
  • Various types of withholding tax and derivation of income (Section 109B, Section 107A, Section 109 and Section 109F)
  • Consequences of non-compliance
  • Interaction with double taxation agreements
  • Double tax relief
  • Implications of OECD BEPS Action Plans development
  • Guidelines in determining the place of business of foreign companies in Malaysia
  • Withholding tax / Digital Service Tax on payment for digital services and e-commerce transactions
  • Latest tax cases on withholding tax
  • Practical issues and case studies
  • Finance managers
  • Accountants and accounts executives
  • Tax managers and executives


CPE

  • A digital certificate of attendance will be issued for 7 CPE hours.

HRDF

  • This webinar is eligible for claiming for HRDF under Skim Bantuan Latihan (“SBL”) (subject to other conditions and SBL claim submission procedures to complete by the eligible employers). The application shall be made by the employer and is subject to HRDF’s approval.
  • Employers are required to register for the event and submit the request via HRDF e-TRIS Portal by 19 March 2021 (please indicate this is “Public Workshop”) and forward the assigned HRDF Grant Reference Number to us by 24 March 2021.

Click here to register

 

Important notes

  • Registration closes on 23 March 2021 (Tuesday) or once all places are taken up.
  • Places will only be reserved for participants who have made the payment promptly.
  • KPMG’s webinar series are conducted online; hence, you will need to have stable internet access in order to participate.
  • All delegates must register with their own email address in order to access and attend the webinar. Entry into the webinar is unique to the registered delegate’s email address and is not transferable.
  • While you may view the webinar using a mobile device, it is recommended to participate using a laptop/PC for an optimal experience.
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