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.
Demystifying Malaysian Withholding Tax
Date and time:
30 March 2021 (Tuesday) [09:00am – 01:00pm]
In this webinar, we will explore: -
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