Withholding Tax Clause In Agreement Malaysia

October 16, 2021

It was released on January 16, 2017. In summary, the reserve had limited withholding tax to services provided by non-residents in Malaysia (i.e. on land). On 2 May 2009, Amir visited Aziz in Singapore and presented him with a cheque in the amount of RM36,900 after deduction of the withholding tax of RM4,100 in the amount of 10% of the gross commission of RM41,000 for the presentation of a buyer to him [according to (f) The obligation to pay Aziz arises on the day of signing the purchase contract. The gross commission received from Aziz is subject to a withholding tax of 10% in accordance with ITA S.4(f) and S.109F. Example: Amir, a businessman from Kuala Lumpur, owns a bungalow in Johor Bahru that has been vacant for a year. His former classmate Aziz, a full-time retiree living in Singapore, has a neighbor looking for a house in Johor Bahru to buy for investment purposes. That`s why Aziz introduces his neighbor to Amir and his neighbor contacts Amir to inquire about his vacant bungalow. On February 10, 2009, a purchase agreement was signed and the bungalow was sold to Aziz`s neighbors for RM1.5 million. Example: ABC Sdn Bhd bought a special machine from JP Corp, a Japanese company.

As part of the deal, JP Corp sent 3 engineers to Malaysia to help install the machine and calculated RM100,000 for installation services. The installation fee of RM100,000 is subject to a Malaysian withholding tax of 10%. .

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